Fees for Filing Chapter 7 Bankruptcy

Bankruptcy fees are a part of filing bankruptcy. Chapter 7 is one of two bankruptcy options. Chapter 13 is for people with income and can pay their debts in three to five years. Chapter 7 is for individuals who have little to no income. Only chapter 7, however, allows you to wipe out your unsecured debts.

The Bulk of the Bankruptcy Fees is the Actual Filing Fee

The U.S. Bankruptcy Courts charge you a filing fee. Without the fee your bankruptcy case won’t be heard. As of 2010, the chapter 7 bankruptcy fee is approximately $245.

There Are Related Bankruptcy Fees That Must Be Paid At the Same Time

Along with the filing fee, you will have to pay other bankruptcy fees. These fees include a miscellaneous administrative fee and trustee surcharge. As of 2010, the miscellaneous fee was $39 and the trustee surcharge was $15. These bankruptcy fees must also be paid at the same filing fee.

With the Bankruptcy Courts Permission the Bankruptcy Fees May Be Paid Over Time

The U.S. Bankruptcy Courts do allow individuals to file their chapter 7 bankruptcy case without paying the bankruptcy fees at the same time. In other words, you may be able to pay the bankruptcy fees in installments. However, there are restrictions. For example, you’re only allowed to pay in four installments. Also, you must pay the last installment must be paid no later than 120 days after filing the chapter 7 petition, according to the U.S. Bankruptcy.

Bankruptcy Fees Can Be Waived Under Certain Circumstances

The U.S. Bankruptcy Courts won’t expect you to pay the bankruptcy fees if you don’t have the money. Nevertheless, there are requirements you must meet. One requirement is making less than 150 percent of the poverty level. If you meet that requirement, the U.S. Bankruptcy Courts will waive the bankruptcy fees.

Filing Chapter 7 is a Short Process

Chapter 7 typically takes three to six months to complete. Thus, you can be debt free in less than a year compared to chapter 13. Chapter 13 takes three to five years to complete and requires you to pay creditors.

Seek Legal Assistance Regarding Bankruptcy Fees

No one should go through bankruptcy without a lawyer. So, if you’re thinking about filing chapter 7, contact a bankruptcy lawyer. The bankruptcy lawyer will assist you in filing the required paperwork along with the required bankruptcy fees. If you need more time to pay bankruptcy fees, your lawyer can petition the court to extend the any of the installments.