How Much Does It Cost to File for Chapter 13 Bankruptcy?

Filing for Chapter 13 bankruptcy is a formal legal request for a partial debt repayment plan, according to the United States Bankruptcy Court. Individuals should anticipate several types of financial costs when filing for bankruptcy.

Basic Court Costs

As of 2010, it cost $274 in court fees to petition for a Chapter 13 debt repayment plan, notes the United States Bankruptcy Court.

Potential Legal Fees

Individuals do not need to hire a lawyer to file Chapter 13, notes the United States Bankruptcy Court. However, when an attorney handles a case, he receives payment for his time unless a pro bono legal aid clinic participates, notes the book “How to File for Chapter 7 Bankruptcy.” The fees for bankruptcy legal help vary depending upon the debtor’s state of residence, potential complexity of the Chapter 13 case and the attorney’s own business policies.

Tax Refund Considerations

A bankruptcy trustee can require an individual to apply part or all of his tax refunds toward creditor repayment while on a Chapter 13 plan, warns the book “How to File for Chapter 7 Bankruptcy.”

References

• "How to File for Chapter 7 Bankruptcy"; Stephen Elias, Albin Renauer and Robin Leonard; 2009
• U.S. Courts: Chapter 13
• U.S. Courts: Bankruptcy Filing Fees