The question I am asked most often is, “How much does it cost to file bankruptcy?” Most people are not happy with my answer, “It depends.” The only set fee is the filing fee, which is paid to the court at the time the petition and schedules are filed. The Chapter 13 filing fee is $274 and the Chapter 7 fee is $299. Additionally, prior to filing bankruptcy, a debtor must complete a credit counseling course through a court approved agency, which costs anywhere from $15 to $60. These are standard costs that will be the same regardless of where you file.
The amount of attorneys fees charged for a bankruptcy case varies widely depending on your geographic location, the size of the firm, and, most importantly, the complexity of the case. Not all cases are created equal. For instance, a straightforward Chapter 7 filing is going to cost a lot less than a complex Chapter 7 case with a lot of non-exempt assets and/or other issues. When an attorney is determining how much to charge, he or she must consider how much time will be devoted to that particular case.
Chapter 13 fees are set by the court. In the Eastern District of Missouri, the Chapter 13 flat fee is $3000. This seems like a lot of money, but it is typically paid out over a five year period of time, which averages out to about $50/month. Some firms choose to take a reduced fee of $2300, but are then able to file fee applications if the time spent on your case exceeds that amount, which can sometimes result in the attorney being paid in excess of $3000. Make sure you understand the fee structure before you sign an attorney fee agreement/retainer.
St. Louis Bankruptcy Lawyers Blog
