As of January 1, 2020, bankruptcy filing fees are typical $310 for a Chapter 13 and $335 for a Chapter 7. These fees might be slightly higher in some jurisdictions. Trustees (people who oversee cases for bankruptcy judges) sometimes add additional surcharges. The professional fees in bankruptcy vary according to the type of assistance, as outlined below.

Severely distressed debtors can apply for a payment plan or a fee waiver. Most judges routinely grant payment plans if the debtor fills out the proper paperwork and includes at least a small down payment. Fee waivers might be available in extreme situations.

Chapter 7 discharges credit cards, medical bills, and other unsecured debts in only a few months. That’s a quintessential fresh start. Chapter 13 gives debtors up to five years to erase mortgage delinquency and another secured debt arrearage. Generally, the bankruptcy court protects debtors from adverse action throughout the protected repayment period.

DIY Bankruptcy

As a rule of thumb, if you are self-employed or a business owner, you do your own federal income taxes, you have considerable legal training, and you are filing a no-asset Chapter 7, a Do It Yourself bankruptcy might be a good idea. Debtors who are outside this small universe of people should typically never file their own bankruptcies. Even if you meet these rough qualifications, you should think twice about a DIY bankruptcy.

Completing all the bankruptcy paperwork by hand is time-consuming, to say the least. A basic consumer bankruptcy requires about two dozen forms. These forms demand almost a mind-numbing amount of financial data. Filing incorrect forms could short-circuit the Automatic Stay or result in a bankruptcy fraud prosecution.

Income tax forms have instructions. Bankruptcy forms have no instructions. DIY filers are completely on their own.
On a similar note, DIY filers are on their own when the trustee asks difficult questions or there is a court hearing. Many trustees are sympathetic to DIY filers. Most bankruptcy judges, however, are not. If you do not know all the procedural and evidentiary rules, even a seemingly routine court hearing will most likely end very badly.

At the end of the day, DIY filing is probably more expensive than working with an Athens bankruptcy lawyer. Filling out the forms will consume many a weekend, and the stress of a DIY bankruptcy is almost unmanageable.

Bankruptcy Petition Preparer

Many people see bankruptcy petition preparers as a middle financial ground between DIY and attorney filings. Federal law caps BPP fees at $200. The law also contains a long list of things BPPs cannot do. Essentially, BPPs can fill out forms, and that’s about it.

Many of these individuals have some legal training, but many do not. There are no professional qualifications for BPPs. So, any advice or guidance these people offer is probably wrong.

Bankruptcy Petition Preparers use computer software programs that complete the bankruptcy forms in a manner of minutes. They are supposed to edit these forms and make sure they are accurate, but they do not always do so.
BPPs cannot practice law. They cannot go with you to meet with the trustee or prepare you for this meeting. They definitely cannot represent you in court. And, as mentioned, they cannot give you any legal advice.

If you are filing a no-asset Chapter 7, a BPP might be a possible option. But do not expect too much. In fact, do not expect anything at all, except to part with $200 and have a little extra time on your hands.

Athens Bankruptcy Lawyer

Legal fees vary significantly. Typically, attorneys charge a flat rate upfront for a Chapter 7. Payment plans are usually available. In Chapter 13, the aforementioned five-year repayment plan includes attorneys’ fees. Some attorneys charge a down payment and others charge little or nothing down.

Trustees can and do object to “unreasonable” attorneys’ fees. “Unreasonable,” however, is a very subjective word. Most judges consider $1,500 for Chapter 7 and $3,000 for Chapter 13 to be reasonable fees. Your cost could be higher or lower, most likely lower, depending on many factors.

Georgia bankruptcy lawyers also use software programs to quickly prepare petitions. Since their filing volume is higher, their systems are usually more robust than what a BPP uses. Additionally, attorneys have an ethical obligation to review forms for accuracy. BPPs have no such obligation.

DIYers and BPPs can only fill out forms. An Athens bankruptcy lawyer can value your assets in line with the Bankruptcy Code. So, your paperwork is much more accurate.

Perhaps most importantly, an attorney can represent you in court, run interference with the trustee, and offer solid legal advice. These three things alone make an Athens bankruptcy lawyer the best possible investment. Bankruptcy debtors already face considerable stress. It makes no sense to make things worse.

Your Total Bankruptcy Cost

Filing for bankruptcy costs the same regardless of the state you’re in because the bankruptcy fees are determined by the federal laws and the courts. Filing for Chapter 7 bankruptcy attracts a fee of $335, while the fee for Chapter 13 bankruptcy is $310. An additional cost of $15-$20 may need to be incurred for trustee board functioning.

If you cannot pay the fees in one go, the court may allow you to pay it in up to four installments. In Chapter 7 bankruptcy, the court may even waive your fee altogether.

Attorney fees are charged separately and can vary from case to case. A complex case will attract higher fees than a straightforward one. It is always a good idea to work out the charges and fee structure with your lawyer beforehand to gain a better understanding of the total bankruptcy cost you will incur.

Ready to Eliminate Your Debt? Call a Georgia Bankruptcy Attorney Today

Attorney filings are by far the most cost-effective bankruptcy filings. For a free consultation with an experienced bankruptcy lawyer in Athens, contact Morgan & Morgan, Attorneys at Law P.C. at (706) 843-2905. Easy payment plans are available.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.