To evaluate the advantages or disadvantages of bankruptcy, the cost of that process should always be considered. In general:
- In both Chapter 7 and Chapter 13 cases, bankruptcy court costs (filing fees etc.) amount to a little less than $350.00.
- Attorney’s fees incurred in filing a Chapter 7 personal bankruptcy should amount to no more than $950.00 (except in very complicated circumstances).
- Attorney’s fees incurred in filing a Chapter 7 business bankruptcy should amount to no more than $2,000 to $4,000, depending upon the facts of each individual case (however, many small business cases would qualify as a personal bankruptcy).
- Attorney’s fees incurred in filing a Chapter 13 personal bankruptcy are set by the Bankruptcy Trustee, with an initial retainer of, at least, $100.00 being required to start a new case. The Bankruptcy Trustee pays all attorneys’ fees that are allowed, from funds paid into the Chapter 13 plan. During a 36-60 month Chapter 13 case plan, attorney’s fees of about $3,000.00 (an average of $50.00 per month) will be paid in most cases.