Does the Cost of Filing Chapter 7 Change with Different Attoneys?

Chapter 7 cost is something that many people need to keep in mind prior to filing bankruptcy. There is no doubt that those who wish to file this type of bankruptcy are hoping to do so to improve his or her financial situation. With that in mind, it may seem very limiting to have to pay significant fees. However, this is a qualification under bankruptcy law. Take into consideration the costs as they are defined under the law.

The Cost of Chapter 7

Federal law outlines the actual cost of bankruptcy. Chapter 7 bankruptcy filing costs $309 in total. Of that, $245 is a filing fee and $39 is for miscellaneous administration fee and $25 is a trustee surcharge. These are the costs a bankruptcy filer will pay to the courts when filing bankruptcy. However, this is not generally all the costs involved.

Attorneys are able to charge individuals a fee for their service. Attorney fees will range widely from attorney to attorney. Most fees for filing a Chapter 7 bankruptcy will be under $2000 in total. However, most attorneys offer options to help the individual. For example, many attorneys will allow the individual to pay the fee over a period of time. By making small payments to the attorney, the monthly cost is less.

There are numerous reasons why filing Chapter 7 bankruptcy filing costs are different from one attorney to the next. Some of those reasons include:

• The attorney's location (the larger the city, the higher the fee)
• The attorney's experience and demand; those attorneys who are have more experience are often more valuable
• The costs associated with using the bankruptcy firm

These are just a few of the reasons attorney fees are different. In short, these are business owners, too and can set their own fees. Some states may offer some restriction on this, but keep in mind that you do not have to use an attorney to file bankruptcy. In other words, if you hope to not pay an attorney fee, you can avoid using an attorney. However, this is never recommended especially as the complexity to filing bankruptcy has increased substantially recently.

Getting Help

To learn about the Chapter 7 costs to you, contact an attorney directly. Most offer a free consultation to those who are in need of filing bankruptcy and want more information before doing so. Ask questions and learn what the costs of obtaining this service are. In many cases, there are affordable options available.