If you are one of the millions of Americans who is struggling to keep your head above water during these historically difficult times, chances are that you are looking for a way to take control of your financial future. You may have bills that are due or long-standing liabilities that are approaching default status. Under those circumstances, you might pursue bankruptcy for a fresh financial start. Even if you don’t, there are some things that you should know about the bankruptcy process to make an informed decision. One of the most important components of any process is the cost. Here’s a little more on the cost of filing for bankruptcy, and what you can do if you are on the verge of filing bankruptcy.

Bankruptcy Filing Fees And Cost

The most common forms of bankruptcy for individual filers are Chapter 13 and Chapter 7. In both cases, the total filing fees and cost will be around $300. This includes filing fees, a trustee surcharge, and administrative fees. Separate from those costs will be the fee for credit counseling courses which are mandatory. You have to pay and complete both pre and post-bankruptcy credit counseling classes in order to successfully finalize your bankruptcy case. The average fee for each course is $15.  The law provides for the waiver of some or all costs associated with filing for bankruptcy if you cannot afford to pay.

Bankruptcy Attorney’s Fees

While having an attorney represent you in your bankruptcy case is not required, it is highly recommended. With recent changes to the bankruptcy laws, and updated protocols in response to Covid-19, retaining an attorney to represent you in your bankruptcy case could make a huge difference in how your case gets handled. Critically, an attorney will ensure that you are following all of the guidelines on how to get your case processed in a timely manner.

It is impossible to give an exact number on what your attorney will charge to represent you in your bankruptcy case. Attorney’s fees vary depending on location and the complexity of your individual case. Particularly, an American Bankruptcy Institute (ABI) Study using data from 2005 to 2009 revealed that the average national cost was $1,072 for Chapter 7 cases involving assets.  Additionally, the ABI study reported an average of $2,564 for Chapter 13 cases (fees ranged from $1,560 in North Dakota to $4,950 in Maine).

Many factors will influence the final cost of hiring an attorney to represent you in your bankruptcy case. Cases that require multiple court appearances will most likely cost more than those that do not. Also, if you have filed for bankruptcy in the past, or you are filing for a business bankruptcy as well as an individual one, then you should expect the cost of retaining an attorney to rise accordingly.

Florida Bankruptcy Lawyers

The Bankruptcy Team, PLLC helps clients resolve financial dilemmas through bankruptcy or other legal avenues so that our clients get the fresh starts that they are entitled to. Our lawyers have spent years refining our practice and staying up to date on recent developments within the bankruptcy sphere. We will carefully review your case to determine what the best option is for you and will vigorously pursue all available pathways toward a fresh financial start. While not all debtors will be eligible for discharge of student loan debt, we will ensure that we do everything that we can to put you in the best position to handle your financial affairs. To consult with The Bankruptcy Team, PLLC, call or contact us today.