How Much Does Filing Bankruptcy Cost?

If you are struggling with debt you cannot repay, you may have already considered filing bankruptcy. Unfortunately, there are many costs associated with bankruptcy and if you are already carrying more debt than you can afford to repay, it is natural to wonder how much it might cost. Below, our Orlando bankruptcy lawyer outlines the costs associated with filing different types of bankruptcy.

How Much Does Filing Chapter 7 Cost? 

The court filing fee for Chapter 7 bankruptcy cases is currently $338. You must pay this fee when you submit your petition to the court, unless you are granted an exception.

It is possible to ask the bankruptcy court if you can pay the filing fee in installments. To do this you must submit a completed installment application to the court. You will also have to pay a down payment that will be put towards the total fee. Each bankruptcy district sets its own down payment amount, so it is important to check with the specific court. Even still, you must make all installment payments within 120 days after filing the bankruptcy petition with the court.

You may also be eligible for a fee waiver if your income is below 150 percent of the poverty line for your household size in Florida. Even if you are eligible, the court must still approve the waiver. If they do not, a judge will usually approve an installment plan. Fee waivers are only available in Chapter 7 bankruptcy cases.

How Much Does Filing Chapter 13 Cost? 

The filing fee for Chapter 13 bankruptcy is $313. To qualify for Chapter 13, you must have sufficient disposable income to make payments to the bankruptcy trustee each month. The fee waiver is not available in Chapter 13 because the courts assume that if you cannot afford the filing fee, you also cannot afford the monthly payments required. However, you can ask the court to pay the filing fee in installments.

How Much Do Educational Courses Cost? 

Regardless of the type of bankruptcy you are filing, you must complete two educational courses. The first is a credit counseling course you must complete before you file bankruptcy. The second is a debtor education course you must complete after you have filed.

The educational courses are the same for both Chapter 7 and Chapter 13. They are not very expensive, as the cost typically cannot exceed $50. You can also complete the courses online so they are not too time-consuming. Again, if your income is less than 150 percent of the poverty guidelines, you can ask the provider of the course for a fee waiver.

Our Bankruptcy Lawyer in Orlando Can Answer Your Questions 

If you are considering filing bankruptcy, you likely have many questions. At Anderson & Ferrin, P.A., our Orlando bankruptcy lawyer can provide the answers you need so the process is as easy as possible for you and you obtain the favorable outcome you need. Call us now at 407-412-7041 or contact us online to schedule a consultation with our experienced attorney and to learn more about how we can help with your case.

Sources:

law.cornell.edu/uscode/text/11/chapter-7

uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics