Kallabat Law Firm Blog

[et_pb_dcsbcm_divi_breadcrumbs_module admin_label="Breadcrumbs" module_class="fl-darklinks" _builder_version="4.3.2" fontsbreadcrumblinks_font_size="18px" fontsbreadcrumblinks_line_height="1.5em" hover_enabled="0"][/et_pb_dcsbcm_divi_breadcrumbs_module]

How Much Does Chapter 7 Bankruptcy Cost?

by | Apr 24, 2018 | Firm News

Fees & Costs in Chapter 7 Bankruptcy

One of the most frequent questions our clients ask our bankruptcy lawyers is how much filing bankruptcy costs. Our bankruptcy attorneys are committed to being open and “up front” about your bankruptcy costs and keeping your fees as low as possible.

Michigan Court Costs in Chapter 7 Bankruptcy

Certain fees must be paid to the Bankruptcy Court. These costs are separate from your bankruptcy attorney fees.

In Michigan the Filing Fees to File a Chapter 7 Bankruptcy is $335.00.  This amount includes a miscellaneous administrative fee of $75.00.

Bankruptcy Lawyer Fees Vary by Area

Attorney fees vary by widely from state to state. Nationally, attorney fees in a Chapter 7 bankruptcy typically range between $1,200 and $1,500. Fees in the Southwest and California tend to be the highest, while fees in Michigan and the Midwest are generally somewhat lower.

Every Bankruptcy Case Is Different

Attorneys will generally base your fees upon the degree of complexity and amount of time anticipated in your Chapter 7.

A case with many creditors will take more time – and have higher attorney fees – than a case with only one or two creditors.

Our bankruptcy attorneys are dedicated to keeping your attorney fees as low as possible in your Chapter 7 Bankruptcy case. If you call us for a free consultation, we can give you an exact price that is based upon the unique facts of your Chapter 7 Bankruptcy.

Judges Can Examine Attorney Fees in a Bankruptcy

The bankruptcy laws give the Judge in a Chapter 7 case the right to examine the fees charged by the attorney. The Judge can also order a refund of the fees to the trustee if they are deemed to be unreasonable.

Beware of Extremely Low Advertised Bankruptcy Fees

If you see ads on television or in the newspaper that promise unbelievably low attorneys fees in a Chapter 7 case, be on alert. Often times these “low low” price ads are deceptive. Often these “low ball” attorneys then increase the advertised fees once they start your bankruptcy – by adding on hidden or additional fees!

Payment Options in Chapter 7 Bankruptcy

· Waiving Bankruptcy Filing Fees

In some cases your bankruptcy attorney can petition the court to entirely waive the filing fees. The bankruptcy court will waive the filing fee only if your income is below 150% of the poverty line.

· Installment Payment of Chapter 7 Bankruptcy Fees

The Bankruptcy filing fees are due when you file your petition. However, under some circumstances you may ask the court if you can pay the fee in installments. A fee payment plan cannot have more than four installments, and the final payment must be made no later than 120 days after you file bankruptcy.

· Free Legal Aid Does NOT Handle Chapter 7 Bankruptcy

At this time, NO Free Legal Aid Offices in Macomb, Oakland or Wayne County will handle Bankruptcy cases. This includes all Detroit Free Legal Aid Offices.

Affordable Detroit Area Chapter 7 Bankruptcy Lawyers

Our Chapter 7 bankruptcy lawyers take pride in offering the most reasonable and affordable bankruptcy attorney fees in Macomb, Oakland and Wayne County – while always offering the highest quality of representation. Hiring one of our experienced Chapter 7 bankruptcy lawyers can save you thousands, tens of thousands or even hundreds of thousands of dollars in eliminating debt!

Investing a small amount in an experienced Chapter 7 bankruptcy lawyer will pay for itself many times over, in reduced and eliminated debt.

Call our Affordable Detroit Area Bankruptcy Attorneys: 248-357-3000