Cost of Chapter 7 Bankruptcy

The cost of Chapter 7 bankruptcy depends on how complex the case is and the projected amount of time the attorney anticipates the case will require. You will be given a firm quote at your consultation. The average Chapter 7 attorney fee is about $1,800. We offer an affordable payment plan. There are also costs, including:

  • court filing fee – $338. The filing fee can be waived if your income is below a certain level. It can also be paid in installments.
  • required credit counseling courses. The charges depend on which credit counseling company you choose. There are 2 online/phone courses. The 1st course is about $20.00. The 2nd course is about $15.00.

Factors in determining the amount of work needed:

  • Whether the income is below or above median for the household size. This determines whether you are required to submit a detailed means test.
  • The number and type of creditors.
  • The value, number, and type of assets.
  • Potential non-dischargeability issues. Creditors can object to their debt being discharged (forgiven) based for specific reasons, such as fraud.
  • Whether there are potential preference or transfer issues. Certain transfers of property can be set aside by the Trustee. You can raise defenses to this.
  • The number of reaffirmation agreements required. Secured debt, such as  your home mortgage and car loans must be reaffirmed.
  • Whether any debts are secured by a voidable lien, requiring a court order to void a lien. This may be necessary if you have a judgment recorded in a county where you own real estate.
  • The extent and complexity of tax debt.
  • Whether the case is a business case.
  • Whether anyone in the household is receiving social security or VA disability benefits. This generally lowers the cost because these types of benefits are not counted in the means test.

Each case is treated individually and is based on the amount of work needed to give the most relief. We are not a high volume bankruptcy mill. Carol Cross Stone personally handles each case. We return phone calls and emails promptly. We strive to give excellent service and personal attention at an affordable cost. We definitely understand that most people who need to file bankruptcy are cash-strapped. These costs can be paid all at once, or over time in a payment plan. We will work with you to help you get relief.

Ready to find out whether bankruptcy can help you?

Complete our free, online debt evaluation form or call our office at (903) 759-5922. You can also email Carol@CrossStone.com. Find out if bankruptcy is your best option.