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Frequently asked questions

How much does filing bankruptcy cost?

Free Initial Consultation for everyone in every case.

Chapter 7 – Court costs, or filing fees are $299.00. There are two required credit counseling sessions, ranging in price from $30.00 to $50.00 for the first one, taken before the case can be filed with the Court, and from $15.00 to $50.00 for the second mandatory Debtor Education course which is taken after the case is filed.  (Free if you are on Social Security Disability)  Attorneys fees vary depending upon your particular case. They generally range from $1,000.00 to $1,900.00, with most people around $1,500.00. Our clients usually make payments to us towards their fees and costs. If Chapter 7 is the right solution for you, you may retain our law firm for as little as $200.00 down.

Chapter 13 – The Court Costs right now are $274.00 to file a Chapter 13 and there is the mandatory credit counseling session before you can file any bankruptcy that costs $30.00 over the internet and $50.00 if taken over the phone.  The Court sets all attorneys fees in Chapter 13 cases to make sure they are fair and reasonable. Right now the Court has set fees at $3,500.00 for a chapter 13 case. That does not all have to be paid in advance of getting the court's protection from your creditors. We can usually start your Chapter 13 with the Court Costs paid in advance, and $500.00 to $1,500.00 towards attorneys fees down, depending upon the circumstances of your case. We can explain that further when you meet with us during your free consultation. In many cases we can start a Chapter 13 with the Court Costs and your paying the credit counseling fee, and the balance of our fees to be paid through the repayment plan. Sometimes however, we do insist on some portion of the attorneys fees being paid prior to filing. This is especially true if you are self-employed, or in foreclosure, or have had prior unsuccessful chapter 13 cases.

How are the fees paid?

In Chapter 7 cases, you can retain our law firm with as little as $200.00 down. This is a non-refundable retainer or deposit. If you are working and have direct deposit of your paycheck we may be able to file your case with the court and stop all collection activities with a total of $500.00 down and the balance of your fees to be paid in payments over time. In some cases, we do insist on the entire fees and costs being paid in full prior to filing your case and getting you the protection of the U.S. Bankruptcy Court.

For Chapter 13 cases, generally, in many cases, we can file your case and stop your creditors as soon as you give us the court costs of $274.00 plus pay the credit counseling fee, and obtain a certificate of completion of the pre-bankruptcy filing course.

What are these credit counseling sessions?

You must do two credit counseling sessions. The first one is done before we can even file your case with the Court. It does not take too much time, perhaps 45 minutes and you can do it over the internet, on the telephone or in person. You must complete this session and provide us with a certificate of completion before we can file your case. This is not a difficult thing, more a pain than anything. One of Congress’ new requirements under the new bankruptcy laws.

Shortly after we file your case, you must do another credit counseling session, which they tell me is more useful than the first one. Failure to do this second session, will result in your case being closed without receiving the all important discharge of your debts! These courses are no more than $50.00 each if taken over the telephone, but cheaper if you can complete them over the internet. You can either give us the money and the credit counseling agency bills us, or you can pay them directly using a debit card.

You must use a credit counseling agency that has been approved by the Office of the U.S. Trustee.

Do I have to lose any of my property?

Our job is to help you save your home and your car, not lose them! We will do all that we can to help you keep your home, your car and all of your other property. You do not need to lose anything when you file bankruptcy!

What about my future credit?

There is no doubt that filing any type of bankruptcy will affect your credit negatively. Filing bankruptcy can be reported on your credit reports for 10 years. This means that anyone looking at your credit will see that you filed bankruptcy. It does not mean that you will not get credit for 10years. But you must be very careful after a bankruptcy, and shop around very carefully to protect yourself and your family from the predatory lending practices that exist to take advantage of working people. You must use certain time-honored methods to find the best deals for credit: shopping around comparing prices and interest rates; doing your homework and knowing how much you should pay for the particular item you want to purchase. It is very important that you purchase wisely.

Can I keep my car and a credit card?

Yes, you can keep your car, so long as you keep paying for it, and keep it insured. Keeping a credit card is another matter. This is up to the creditor. Many times, a creditor will be pleased to let you keep the card, so long as you keep paying them. The best thing to do is to have us contact the creditor and make an arrangement for you in writing. We must tell the judge everyone you owe money to, even though you want to keep paying some of your debts. You are free to pay anyone you wish, but you must disclose all to the Court.

How can I re-establish my credit and get a house after bankruptcy?

We have filed bankruptcy for many people who later went on to buy a home. The important thing is to start making payments on time after you file bankruptcy. Future lenders want to see that you can pay your bills on time. That is how you will re-establish your credit. Perhaps you will begin with a debit card at your bank, or with your car loan.

What about taxes and student loans?

Some taxes are dischargeable in bankruptcy, if they are income taxes, and you did file the returns on time, and they were filed more than three years plus eight months ago. If you filed late, they must have been filed more than two years ago. Student loans are never dischargeable in bankruptcy. This became the law in October 1998.

What if I have a co-signer?

You must let us know whether you want to protect your co-signer or not. With Chapter 13 we can force the creditor to accept payments that are lower than you must pay now and still protect your co-signers! There is no co-signer protection with Chapter 7.

What about parking tickets?

We can get your car unbooted very quickly but parking violations are not dischargeable in Chapter 7! We can sometimes pay as low as 10 cents per dollar using Chapter 13!

Will I have to go to court?

In every case, there is at least one appearance that you must make at the office of the U.S. Trustee. The Trustee is appointed in each bankruptcy case to administer the case for the judge. This meeting does not take place in a courtroom, and an attorney from our office is with you at all times. The meeting is called a Section 341 meeting, and it is held at the office of the U.S. Trustee. We will take care of you during the meeting. You have already gone over all the details with an attorney from my office, and I have personally reviewed your file. There will be no surprises for us at the meeting.

Are any debts not covered by bankruptcy?

There are a few debts that cannot be wiped out. Child support, alimony, student loans, income taxes for recent years, parking tickets, fraudulently acquired credit, or judgments arising from accidents involving driving under the influence of alcohol or drugs. These debts must be paid back using Chapter 13.