One of the most common questions we get asked is, “How much does it cost to file bankruptcy?” There are a few different fees and costs in relation to filing bankruptcy. These fees can often be waived or set up into installment plans. Keep reading for a brief summary of the fees associated with Chapter 7 and Chapter 13 bankruptcy.
Filing Fees for Bankruptcy
The fees and other costs related to filing for Chapter 7 and Chapter 13 do occasionally increase, which they recently did. As of now, these are the costs associated with filing bankruptcy.
- Chapter 7 – Chapter 7 bankruptcy fees total $335. This includes a $245 filing fee, a $75 administrative fee and a $15 trustee charge.
- Chapter 13 – The cost of filing Chapter 13 is $310, which includes a $235 filing fee and $75 administrative fee.
Fee Waivers and Installment Plans
Many who are filing for Chapter 7 bankruptcy are not in a position to feasibly pay $335, and are therefore allowed to apply for an installment plan or a waiver. In order to be approved for a waiver, you must prove that you are unable to make an installment plan work.
If you do not qualify for the waiver, but wish to set up an installment plan, you will be required to create a plan yourself. This plan cannot include more than four separate payments and must be able to pay the entire amount within 120 days of filing for bankruptcy.
Additional Costs Associated with Bankruptcy
- Credit Counseling – You will be required to complete credit counseling at least six months prior to filing for bankruptcy. Approved third party counselors usually cost about $50.
- Financial Management Course – In addition to the credit counseling, you will have to finish a financial management course before your debts can be discharged. These courses typically cost about the same amount as the credit counseling: $50.
The Law Firm of Kevin D. Judd is dedicated to helping individuals in the Washington D.C./Maryland area who are struggling with debt to find financial freedom through whatever means best suits their situation.
