The cost of a bankruptcy filing varies slightly depending upon how complex the particular matter may be.
Chapter 13 filings are more complicated than the regular bankruptcy, but the advantage is that your legal fees can be included in the PLAN, which means that your single monthly payment to the TRUSTEE will cover attorney fees as well as your debts.
a. Court Costs
Court costs are paid to the Bankruptcy Court as filing fees. These are the same no matter who the lawyer is. Unless the Court approves an installment Order, they must be paid in advance of filing
$274 for a Chapter 13
$299.00 for a Chapter 7.
(If you forget a creditor and need to amend your filing, you may have to pay additional costs, which are paid through our office to the Clerk.)
b. Legal Fee (New Law, Effective 10 17 05) The Bankruptcy Reform Act prohibits lawyers from advising debtors to borrow money to pay legal fees. We assume this includes the lawyer actually giving you a line of credit to do so. Therefore, Chapter 7 fees are payable in full, in advance. Chapter 13 fees are in the Plan and are paid over time.
The Legal Fee covers the services of G. Paul Marx, Professional Law Corporation. It includes consultations and preparation of the papers to file your case, as well as attendance at your 341 (Creditors) Meeting and other Court appearances.
Chapter 7
$800 to $1,500, depending on particular elements of the case, for individual or married couple, non-business (most consumers)
Additional fees will be charged in cases where there is a claim by a creditor that assets were hidden or that a debt should not be discharged. These fees will vary according to the time involved. Such cases are rare, however, and the fee will be discussed well in advance of the need to pay.
The Chapter 7 fee is payable in advance: $200 at the time you return your forms to us for processing. Approximately 10 days later, when the paperwork is done and ready to sign, the court costs and the balance of the fee must be paid. If you don't file, you pay only the initial fee.
Chapter 13
Up to $2,500 + any fees during the case for additional work, such as annual budget reviews, plan revisions.
The fee may be made part of the plan and will be paid by the Trustee. $200 is paid at the time you provide the bankruptcy information to the firm and if you decide not to file, you owe nothing more. If your case is filed, the rest can be covered by your monthly Chapter 13 Plan payment.
G. Paul Marx, A Professional Law Corporation
850 Kaliste Saloom Road, Suite 107, Lafayette, La.
337 237 2537
BASICS FRESH START YOUR RIGHTS CREDITORS' RIGHTS WARNING AFTER BANKRUPTCY TAXES LEGAL FEES, COURT COSTS CHAPTER 7 CHAPTER 13
THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.