How Much Does It Cost to File for Bankruptcy?

Interviewer: That is good to know. How much does it cost to file bankruptcy on average for a Chapter 7 or a Chapter 13? I heard it is not free.

Adam: Yes, that is right, I would say the average price is going to depend on any complex issues presented, but right around $1,200 for a Chapter 7 and a Chapter 13 is going to be considerably more expensive and, it’s going to be based on an hourly rate.

Interviewer: How much will Chapter 13’s run on average?

Adam: Probably closer to $2,500, anywhere between $2,000-$3,000 is probably a good estimate.

This Attorney Offers Payment Plans for Bankruptcy Clients

Interviewer: Since people are filing bankruptcy, I guess it is kind of odd that it costs money to do it. If somebody doesn’t have all of the money up front, can they make payments? How does it work with your office in particular?

Adam: We can make arrangements with payment plans to get them in a position where they can file for bankruptcy. The following is important to note: If my client has a new garnishment on his or her paycheck and they have lost money – and are in an even more reduced circumstance – because a creditor has already filed nationally against them and has a judgment and is attaching their wages, they can get some if not all of that money back. That also helps toward the expense of filing.

Interviewer: That is good information for people to know.

Adam: The filing fees to the court are just a little over $300.00. As you might think, the court’s time isn’t inexpensive, either.

How Long Will the Chapter 7 Bankruptcy Process Take?

Interviewer: Yes, that makes sense. Let’s finish off with the process and then we will talk about other issues. So, people file the paperwork. They have this initial meeting with the creditors. If there is nothing amiss after that meeting, for a Chapter 7 filing, how long will it take and how long after the 341 meeting will the debts be discharged?

Adam: That’s the end of it as far as any kind of process goes. The 341 hearing is just to make sure all the pertinent information has been disclosed and that this is the right person or debtor and that they are not hiding anything. When the meeting is concluded, that is pretty much the close of it.

Interviewer: Does the debtor receive a certificate that their debts have been taken off or does it take weeks later until the trustee closes the case? How long will it take until they get final resolution and they are done and out of bankruptcy?

Adam: Sometimes they will present the debtor with everything that they need right then. Sometimes it will take up to a week, usually less than one.

Interviewer: I see.

Adam: Like I mentioned, usually for the most part, everything should be done that day.

By Adam Hunt

© 2012 - 2014 by Adam C. Hunt, HUNT LAW LLC . All rights reserved.