The Costs of Bankruptcy

It may seem somewhat ironic to anyone considering filing for bankruptcy that he or she is expected to pay exorbitant fees to file.  Fortunately, filing costs are relatively minimal.  For a Chapter 7 filing, which is generally for individuals with an income below the median for their state or who meet a somewhat complicated “means test,” the basic filing fee is $245.  For a Chapter 13 filing, which is for those with more substantial income and/or who may be allowed to keep assets such as a house and extend the time they have to repay creditors (usually to a period of 3-5 years), the basic filing fee is $235.

At Keith, Winters & Wenning, we understand that those people who are filing for bankruptcy are often not in a position to pay extensive legal fees, especially not “up front.”  So we are patient and structure a fee schedule that makes sense and is doable in each case.

HINT: In a Chapter 7 case, legal fees must be paid prior to filing, but in a Chapter 13 case legal fees can be spread out over 5 years!