Calculate the cost of your bankruptcy case

Calculate the Cost of Your Bankruptcy Case Using These Guidelines

Chapter 7 Cases

Tier 1 Cost:     $795

Tier 1 clients are those whose only source of income in the entire household is social security, workers’ compensation, state disability, child support, or public assistance.

Tier 2 Cost:    $975  (This is 80% of our chapter 7 clients)

Tier 2 clients are those whose household income is below the median income level for their household size and whose credit card debt and unsecured personal loan debt is less than $40,000.

Tier 3 Cost:    $1,150 and up

Tier 3 clients are those clients with more complicated issues, such as high debt, high income, tax issues, businesses, and non-exempt assets.

Additional fees for Chapter 7 cases: 

Court filing fee:  Current filing fee charged by the US Bankruptcy Court is $335

Reaffirmation agreements:  $75 for first agreement and $25 for each additional agreement. Reaffirmation agreements are needed for secured debts, such as car loans and mortgages.

Lien avoidance motions:  $300 for first lien and $50 for each additional lien. These motions are needed ONLY if you own real estate and have judgment liens against you.

Payment Plans:  We are happy to offer payment plans to our clients. Although we cannot file your case until the fees are paid (otherwise we would be considered a creditor), we honor our fees for an entire year. On average, it takes clients about 3 months to pay for fees, but whether you pay us in a week, a month, or a year, does not matter to us. We are here to help you whenever you are ready to file.

Chapter 13 Cases

Tier 1 Deposit:           $100 – 300, plus court fee

Tier 1 clients are those who have a regular source of employment income or fixed income (such as pension or social security). Balance of fees paid through chapter 13 plan.

Tier 2 Deposit:            $500 – $1,000, plus court fee

Tier 2 clients are those with self-employment income, business income, complex real estate issues, or repeat bankruptcy filings. Balance of fees paid through chapter 13 plan.

Note:  The fee structure for Chapter 13 is very different than for Chapter 7. In the short run, the costs are lower because the Court permits us to include the balance of our fees in your chapter 13 plan. Each case is unique, so we cannot set the total fee until we prepare your case. However, we will never ask you for additional fees to file your case or to obtain confirmation of your plan. We ask the client for only a small good-faith deposit to file the case, and we are happy to wait to be paid over the 3-5 years of your case.