Financial trouble can introduce tons of stress to your life, and if you are considering filing for bankruptcy, the fact that even more fees come along with filing might scare you away from the option. However, even with the fees and costs associated with court filing and attorneys, bankruptcy can still be a fantastic option for reducing debt and helping you achieve financial freedom. While it may seem counterintuitive to spend even more money, the ability to eliminate most or all of your debt makes it worth it in the long term. Today, we will take a closer look at why fees exist, as well as what you can expect when hiring our firm.
Bankruptcy Court Filing Fees
Filing fees are an essential part of initiating a bankruptcy case that you can’t ignore. These fees, paid directly to the court, cover the administrative costs necessary to process your bankruptcy petition, distinct from attorney fees or other costs.
Chapter 7 bankruptcies have a filing fee of $338. This fee is required to submit your bankruptcy petition and officially start your case. Without this fee, your petition cannot proceed, and you cannot seek financial relief from the court.
The filing fee for Chapter 13 bankruptcy is slightly lower, at $313. Unlike Chapter 7, Chapter 13 involves a structured repayment plan overseen by the court, necessitating different administrative resources.
In both types of bankruptcy, these filing fees are mandatory and must be paid upfront. The court does not waive these fees, although it may offer payment plans in certain circumstances. Budgeting for these and upcoming attorney’s fees when considering bankruptcy is another part of the puzzle to fix your financial situation.
Attorney Fees for Chapter 7 Bankruptcy
Attorney fees cover the professional services provided by your attorney throughout the bankruptcy process, including legal advice, document preparation, and representation in court. Hiring a bankruptcy attorney isn’t free, and some are confused about how spending even more money on an attorney will help their situation. However, the assistance of a bankruptcy attorney is a fantastic investment that can turn your long-term financial issues into a thing of the past.
No upfront payment is required for your initial consultation with our firm. Chapter 7 isn’t the best option for everyone, and attorneys must judge the situation and advise proceeding with bankruptcy before accepting payment. The consultation also gives the person seeking bankruptcy an estimate of the overall costs and filing fees involved.
The standard attorney fee for our Chapter 7 bankruptcy services is $1,500. This fee covers the full range of services needed to undergo the Florida bankruptcy process, including:
- Preparation for your bankruptcy petition and help to file it when ready.
- Legal advice and guidance throughout the process.
- Representation at the Meeting of Creditors
- Handling communications and negotiations with creditors.An initial fee of $500 is typically required to retain our services. You can usually pay the remaining balance of the attorney fee in installments, but they must be paid in full before filing your bankruptcy petition.
Attorney Fees for Chapter 13 Bankruptcy
Attorney fees for Chapter 13 bankruptcy tend to be higher than those for Chapter 7 due to the repayment plan’s more complex nature and the case’s extended duration. However, we aim to avoid prohibitively expensive fees that limit who can hire our team. Fees cover the necessary legal services to file and manage your Chapter 13 bankruptcy such that your repayment plan is feasible and complies with court requirements.
Like a Chapter 7 bankruptcy, no fee is required for the initial consultation. However, the total attorney fees for Chapter 13 bankruptcy are higher, ranging from $3,900 to $4,500, depending on how much you pay before filing.
The initial fee for Chapter 13 cases is bumped to $750 for retaining our services – this initial payment allows us to begin working on your case confidently and provide the best services possible to help you out of your financial situation. The remainder of the pre-filing fee is not due until the case is officially filed.After filing, half of your attorney fees can be paid through the Trustee’s payments. Through this process, the initial payment for a Chapter 13 bankruptcy begins to look much like the initial fee for a Chapter 7 bankruptcy. No one should struggle to get help with their bankruptcy simply due to exorbitant upfront fees, and this allows us to provide our services to you without placing an immediate strain on your finances.
If you still have questions or concerns about filing fees and costs and how to begin bankruptcy, remember that our consultations are always free. Contact Richard V. Ellis today to schedule your free consultation.
