Cost of Filing Bankruptcy
The new bankruptcy laws have increased the cost to file bankruptcy due to the additional work attorneys must do. Below you will find a breakdown of all the costs associated with filing bankruptcy.Pre-Bankruptcy Credit Counseling – As we detailed in our post on the requirements of bankruptcy credit counseling and personal financial management course, every filer must complete a credit counseling course within 180 days before filing bankruptcy. The fee can vary, but is typically around $40.Bankruptcy Petition Preparation – You can represent yourself in bankruptcy court, hire an attorney or use a non-attorney bankruptcy petition preparer (NABPP). Filing by yourself means you have to get the forms, free bankruptcy forms can be found online and there is also bankruptcy software that is available.. An attorney charges an average of $1500 for a chapter 7 bankruptcy and $3500 for a chapter 13 bankruptcy which is higher now due to the additional work they must complete thanks to the new bankruptcy laws. You can also have an NABPP prepare your petition if one is available. Each state varies but an NABPP charges around $150 to prepare your forms.Bankruptcy Petition Filing Costs – You will have to pay a fee to the court to actually file your petition. A ch 7 petition filing fee is $299 and a ch 13 fee is $274 currently.Personal Financial Management Course – After your bankruptcy petition is filed you have one more fee to go. A personal financial management course has to be completed by a certain date. Just like the credit counseling course, the cost will vary depending on the location of the course but the average cost is around $30.Total Cost To File Bankruptcy – If you complete everything yourself you can file bankruptcy for as low as $369, and if you use a bankruptcy attorney, it can cost you $3869 or more to file bankruptcy.
