What does it cost to file Chapter 13 bankruptcy and how does it work?

Bankruptcy is a very complicated process; a chapter 13 is extremely complicated and takes between 3 to 5 years to complete. It is wise to talk to an experienced chapter 13 bankruptcy attorney before deciding to take this important step.

My office typically charges a down payment of $1500 prior to filing a chapter 13 bankruptcy. In a chapter 13 you make payments into what is called a plan of in essence your excess monthly income after necessary monthly expenses. Depending on the circumstances, your plan would go for 3 to 5 years and after the last payment you receive a discharge of your outstanding unsecured debt, meeting the balance of your credit card, medical debt etc. will generally be forgiven. The balance of the fees to my office are usually paid through the payments you make into the plan, i.e., they are paid from money you would have paid into the plan anyway.

The cost of chapter 13 bankruptcy can vary depending on your financial circumstances and the experience of your attorney. However, an experienced bankruptcy attorney can make sure you that you pay only what is required by the bankruptcy code. Chapter 13 bankruptcy requires you to pay a certain amount to your unsecured creditors over the course of your plan. You should schedule a consultation with an attorney to get more details and make sure that chapter 7 bankruptcy (where you might not have to pay anything) isn't an option.

Initial fee for a Ch 13 varies by attorney. A fair fee would be $1500$2000. Some attorneys will do a 13 for an initial retainer that is much less. Ch 13 is very complicated. You need an attorney. There is lots of general info about Ch 13 on the internet, of varying degrees of accuracy.

Asking a question such as this is like asking how much does a car cost and how does it operate. Most attorneys will give you a free consultation and after the consultation, they will then give you a quote. The way a Chapter 13 works varies greatly based on who you owe, what liens are on your assets and many other questions. Although any attorney can tell you what they charge on average, what you care about is what it will cost for your case. A separate problem is that some attorneys will try to force your case into a mold that your case simply does not fit. Your concern should be whether you are better off after you complete a Chapter 13 than you were before you filed your case. Chapter 13 is not a magic bullet and sometimes your payment into a Chapter 13 plan will be higher than you were paying before you filed, sometimes the amount will be about the same or sometimes the payment will be lower. If you do not have sufficient income to pay your bills, Chapter 13 may not be able to reduce your bills to an amount you can afford. Chapter 13 often does this, but, do you care about all the cases that payments were reduced or do you care about what your payment is going to be. Call an attorney who regularly files Chapter 13 cases. Bring a list of who you owe and how much the payoff is to the first meeting. Make sure you are going to be meeting with an attorney and that the attorney you meet with will be the one who goes to Court with you in most cases. Of course, you may actually be a good candidate for a Chapter 7 or a debt workout through an HONEST debt workout organization such as Family Services. Do not try to decide what kind of case you should be filing, meet with an attorney who will look at ALL of your options and even tell you that the best option is to do nothing.

The typical fee is $4000 for a consumer without a business. $4500 if a business is involved. A Chapter 13 provides you a way to pay up to 100% of your unsecured debt over 60 months. Once you determine how much disposable income is left over after paying your living expenses and secured debt, the money is sent to the Chapter 13 trustee to pay to your creditors. If, after 60 months, there is still a balance owing, it is discharged.

Most attorneys in the Chicago area charge $3500 as a flat fee for a chapter 13 case. That is a standard approved in advance by the court. There is also a filing fee charged by the court of about $300. Each lawyer sets the fee arrangement, meaning that some require the entire amount to be paid but most s take less up front and get the balance paid through the plan.

The cost of a Chapter 13 is typically regulated by the Courts and depends on the scope of services provided. For example, lien stripping is usually an exta $1,000, and there would be an additional fee to perform a vehicle cramdown. In most Chapter 13 cases, you pay a small down payment and the balance of your attorney fees are paid to your lawyer through the Chapter 13 Plan from money that would otherwise be used to pay your unsecured creditors - you know, the credit cards, bill collectors, who forced you into bankruptcy. Pretty sweet having your creditors pay your attorney fees.

The total fee is $3781 but i file for $600 up front and get paid the rest through the plan. Basically you determine how much per month you can afford to pay your creditors, and that monthly payment is taken from your check and sent to the court every month. The payment plan can be for 3-5 years. At the end of the bankruptcy, any debt you were unable to pay is discharged (except student loans).

The Court charges a filing fee of $281.00. Most lawyers charge $1,500 to $2,500 as an advance fee. How it works is a very long story. A very short and incomplete summary is that you start the case by filing many pages of information together with a Petition to the federal bankruptcy court in the district where you live. You also must complete a 'briefing' on consumer credit before you file. This is usually done on the web. Among the papers you file is a 'Plan,' which says that you will pay in a certain sum each month for either 36 or 60 months, depending on your earnings for the past six months, doubled. General unsecured debt gets paid relatively little, while certain specific kinds of debt must be paid in full through the Plan. If you make all the required payments, at the end of the Plan period you get a discharge, which is a court order prohibiting your creditors from ever trying to collect on any discharged debt. During the pendency of the case they are also (generally) not allowed to try to collect you eitherexcept by receiving payments through the Plan. It's a good idea to find a skilled bankruptcy lawyer to advise and represent you.

Call a Bankruptcy attorney...many give free consultations. There is no way to answer this question without knowing your specific situation and knowing if you even need a Chapter 13.