top of page
Chapter 7 vs. Chapter 13
When people think of bankruptcy, people usually think of Ch. 7 aka a liquidation. Immediately 50% of the US population will not qualify to file a Ch. 7 due to income. Of the 50% that qualify, half of those people will not want to file a Ch. 7 because they will lose an important asset they could keep in a Ch. 13 like a house or a car.
25% OR LESS WILL QUALIFY AND WANT TO FILE CH. 7
75% OR MORE WILL ACTUALLY FILE A CH. 13
Chapter 13
cost before case is filed: $313
$313 is the Ch. 13 court filing fee. That is the typical upfront cost this firm charges unless there is an extraordinary situation, for example a foreclosure occurring very soon. In those rarer cases this firm will ask all fees be paid upfront. Attorney Fees in the Ch. 13 are $4000 - $4500 and are paid over the course of the Ch. 13 bankruptcy plan.
Monthly Ch. 13 Payment:
$100 Minimum Monthly Payment
$2000+ Upper End Monthly Payment
$200 Average Monthly Payment
Ch 13 Payments Plans run 36 - 60 Months (aka 3-5 Years)
Ch. 13 monthly payment is different for every client. It is based on a formula that takes into account your income, your assets, and your debts.
Chapter 7
cost before case is filed: $2400
Attorneys fees plus court filing fee are $2400 to file the Chapter 7. These fees can be paid in installments. However the Ch. 7 case cannot be filed until all the fees have been paid. Be aware you will not receive bankruptcy protection until the case is filed, so sometimes it is best to go ahead and file the Ch. 13 to get immediate protection
Chapter 7 Payment Plans
1 Payment - $2400
2 Months - $1200 / Month
3 Months - $800 / Month
4 Months - $600 / Month
6 Months - $400 / Month
12 Months - $200 / Month
Credit Counseling Courses for both Ch. 7 & Ch. 13
Course #1 (before the filing) $12
Course #2 (after the filing) $12
Married Couples
Married couples filing together pay one fee. So one Ch. 7 fee or one Ch. 13 bankruptcy payment per month.
bottom of page