The Bankruptcy Court is a Federal Court that must follow Federal law and Federal Bankruptcy procedural rules. The court filing fees are set by Federal law and are uniform in every Bankruptcy Court in the country.
The two most common chapters of bankruptcy filed by individuals are Chapter 7 and Chapter 13. A debtor must pay a $306 fee to file a Chapter 7 bankruptcy or a $281 fee to file a Chapter 13 bankruptcy.
Every person filing a Chapter 7 or a Chapter 13 bankruptcy will pay the same filing fee; however, attorneys’ fees may vary to extreme degrees. An attorney’s fees can differ from state to state or from city to city. Additionally, an attorney’s price quote will often reflect the expected difficulty of the case.
One individual may own a minimal amount of assets and have a limited number of creditors to deal with. Another individual may have an abundance of assets and numbers of secured and unsecured creditors. The “no-asset” case will require less time from the attorney and will likely be less expensive than the latter case. A Chapter 7 Bankruptcy in Arizona may range from $1,000 to $3,000 in attorney’s fees, depending on the type of case and/or other factors mentioned above.
A Chapter 13 Bankruptcy generally costs more than a Chapter 7 Bankruptcy because the cases are often more difficult and the bankruptcy may last three to five years. A Chapter 13 Bankruptcy in Arizona may range from $2,000 to $5,000 depending upon the type of case and previously mentioned factors.
The fees in a Chapter 13 Bankruptcy may be broken up in the bankruptcy. Attorneys will often charge an upfront fee for the initial preparation and filing of the case. The remaining attorney’s fees can then be paid by the client through the Chapter 13 Bankruptcy plan. A Chapter 13 Bankruptcy is basically a repayment plan supported by the debtor’s monthly payments to the Bankruptcy Court. Creditors receive a pro rata share of the funds available to repay debts. The attorney’s remaining fees are paid through the Chapter 13 like the debts of other creditors. If you have questions regarding the costs of bankruptcy, contact and Arizona Bankruptcy Attorney today.
The price of a bankruptcy is not necessarily indicative of the quality of the service or the accuracy of the bankruptcy petition. A larger law firm may charge more because of the staff involved in the process and the amount of care shown its clients. A single attorney may have lower fees due to less overhead costs and may neglect her clients. The quality and care of the provided services could also be reversed, where the large firm neglects its clients and the lone attorney offers the care her clients need.
Since price alone does not indicate the quality of service, a potential filer should shop around and meet with different attorneys. The attorney’s credentials, staff (could be a positive or a negative), office, location, and personality could all play a factor in whether a potential client would hire the attorney.