How Much Does it Cost to File for Bankruptcy?
June 30, 2022
If you’re considering filing for bankruptcy, there are several considerations you’ll need to take into account before taking action. Many people falsely see bankruptcy as failing and think it will ruin their finances. In reality, it can be one of the best decisions you can make for yourself or your business; and can set you up for a brighter financial future. Still, it’s not a decision that should be taken lightly or without consulting with a professional. If you’re looking for a bankruptcy attorney you can trust, reach out to us today at Vivona Pandurangi, PLC. We’re committed to working with you throughout the entire process by thoroughly explaining your options so you can make informed decisions about your future. We have locations in Falls Church, Virginia, and Alexandria but can serve clients in Arlington, Fairfax, and Manassas.
There are three main chapters of bankruptcy, some designed for individuals and others better suited for businesses. Consulting with an experienced attorney is the best way to determine what type is best for you. Your attorney can also advise you of the advantages and disadvantages of each chapter, including how much time each type takes, what kind of asset protection each will afford you, and how long you must wait after filing to qualify for loans. With any type of bankruptcy, there will be court filing fees associated, though your specific costs may vary depending on your circumstances.
Chapter 7: The total filing fees for a chapter 7 bankruptcy are $338, which consists of a $245 filing fee, $78 administrative fee, and a $15 trustee surcharge fee. If you need to reopen a chapter 7 case, you’ll need to pay an additional $260
Chapter 13: When filing for chapter 13 bankruptcy, you’ll pay a total of $310, which includes a $235 filing fee and a $78 administrative fee. If you wish to reopen your case, you must pay a $235 fee.
Chapter 11: Chapter 11 bankruptcy is a significantly more expensive undertaking, with a total filing fee of $1,738. This chapter is often much more complicated because it allows businesses to remain operational during the process.
Of course, the court fees are only a portion of your total expenditures when filing for bankruptcy, as you’ll likely need to work with an attorney. Attorney fees can vary widely depending on your needs and the type of bankruptcy you’re using. In general, chapter 7 filing will come with the lowest attorney fees since this type is the fastest and is usually reserved for individuals without a lot of assets. On average, you’ll pay $1,450 total to your attorney when using chapter 7, but for simple filings, this could be less. Because chapter 13 is more complicated and may require court appearances, you can expect to pay between $3,000 and $5,000 in attorney fees. Chapter 11 filing has some of the highest attorney fees since they’ll be involved in a long and ongoing process, and the associated costs are highly subjective. A relatively simple filing may cost as little as $15,000, but it’s not uncommon to see costs exceed $100,000.
Why It’s Crucial to Hire an Attorney
Facing bankruptcy can be a stressful and scary time, but with the right legal support, you can be sure you’re making a decision that’s right for you and your business. If you’re in the Falls Church, Virginia, or Alexandria area, contact us at Vivona Pandurangi, PLC, to schedule a consultation. We’re committed to helping you through this process for the best possible outcome. Give us a call today. We proudly serve clients in the counties of Fairfax, Arlington, Prince William, and Loudon, Virginia, as well.