Filing Chapter 13 Bankruptcy: Fees and Costs

Bankruptcy fees may take a toll on your already ailing financial health. But knowing the amount to expect gives you a chance to prepare for fees and costs involved in filing for a Chapter 13 bankruptcy. Here are some of the fees and costs that you have to shoulder when undergoing this type of bankruptcy.

Filing Fees

Chapter 13, which imposes a structured repayment plan for debtors who do not wish to give up their homes, requires payment of a filing fee of $274. This covers the filing fee of $235 and the administrative fee of $39. These fees must be paid to the clerk upon filing of the bankruptcy case. If you cannot afford to pay the fee in full, you can ask for permission from the court to pay it in installment. Maximum number of installment allowed is four and the debtor should be able to complete the payment within 120 to 180 days after the petition has been filed, depending on the court’s order. There is also an additional $39 administrative fee for each installment payment. Failure to pay these fees can result in case dismissal.

Attorney Fees

Another fee that you have to consider when filing Chapter 13 is the fee for the attorney. Bankruptcy lawyers generally charge by the hour and this hourly rate depends on the current rate in your state or area. There is also a charge called, retainer which is needed for a case to begin. A retainer fee may range from $500 to $1000. The payment apart from the retainer is to be paid as part of the court-ordered payment plan.

Saving on Bankruptcy Costs

Filing and administrative fees are standard but you can still save on the other costs involved in filing for bankruptcy. One way to do that is to do as much as you can in terms of bankruptcy filing procedures. For example, instead of hiring a lawyer to download and fill out the bankruptcy forms for you, you can do it yourself by visiting the official website of United States Courts. You should also make an effort to do extensive research about the process so you don’t have to spend a lot on legal consultation.

Seeking Legal Help

Also, it would be important to find an attorney that is not only experienced in this field but also offers reasonable rates, ideally lower than what the others charge. This would help you cut down the cost you will have to spend when you file for bankruptcy.