How Much Does Bankruptcy Cost?
Many people do not fully understand the cost of filing bankruptcy. In order to successfully file chapter 7 or 13 bankruptcy, you will need to pay for several expenses. Some of these expenses are mandatory while others are optional. To learn more about the cost of filing bankruptcy with Sacramento Law Group call us at (916) 500-0704.
How much does a Sacramento bankruptcy attorney cost? Find out at http://sacramentobankruptcylawyer.us/how-much-cost and call our office for a free quote.
The Court Filing Fee
- Chapter 7 Bankruptcy: $335
- Chapter 13 Bankruptcy: $310
Many clients are unaware that the bankruptcy filing fee is several hundred dollars, perhaps due to bankruptcy attorneys excluding the filing fee from their quote.
The filing fee for chapter 7 bankruptcy is $335. The $335 filing fee is a total of the $245 chapter 7 filing fee, $75 administrative fee, and $15 chapter 7 trustee fee.
The filing fee for chapter 13 bankruptcy is $310. The $310 filing fee is a total of the $235 chapter 13 filing fee and a $75 administrative fee. In chapter 13 bankruptcy the trustee’s compensation derives from a percentage of the plan payments; consequently, the trustee’s fee is not represented as a flat fee like it is in the $335 chapter 7 filing fee.
Obtaining a credit report before filing bankruptcy is not required, but strongly recommended by our bankruptcy attorney. A professional 3 source credit report will list your creditors along with their addresses. This information is vital to ensure that your creditors receive notice of your bankruptcy filing. If a creditor does not receive notice of your bankruptcy their claim may not be discharged. Hence, obtaining a $50 professional credit report is well worth the money. If you cannot afford a professional credit report you can visit https://annualcreditreport.com to order a free 3-source credit report.
Before you can file bankruptcy you must obtain credit counseling from an approved agency. The cost of obtaining credit counseling is approximately $15 and the course should take approximately 1 to 2 hours to complete. After filing bankruptcy you must also take a financial management course which will cost roughly $15.
Bankruptcy Attorney Fees
If you file bankruptcy without an attorney you will obviously not have to pay a bankruptcy attorney, though this course of action has cost many pro se clients their houses, tax refunds, cars, cash, annuities, etc. With that said, if you hire a bankruptcy attorney you will have to pay some amount in attorney fees. The amount varies widely between bankruptcy attorneys and can be as little as $500 to over $4,000. The difference in cost may reflect the quality of service so don’t go with the cheapest bankruptcy attorney in your area.