How Much Does it Cost to File for Bankruptcy in New York?
The major costs associated with a New York bankruptcy case include attorney fees and bankruptcy court filing fees. Attorneys in the state tend to charge within the same range, depending on the type of case being filed, since attorney fees are required to be disclosed to the bankruptcy court. Attorneys can provide a quote during a consultation. The New York bankruptcy court websites list their filing fees and the cost for the services they provide.
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Attorney Fees
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Factors that will affect the cost of hiring an attorney in New York include the type of bankruptcy being filed and the amount of work involved with the particular case. Chapter 7 cases tend to require the least amount of work and are usually completed within four to six months after the date of filing. Chapter 13 cases are more complicated because the client is setting up a three- to five-year payment plan through the bankruptcy court. The attorney may be required to file a number of motions and attend various hearing dates on behalf of the client during that period of time. Carefully review the retainer agreement to find out what the attorney charges for the legal services he will perform.
Credit Counseling & Debtor's Education Course
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Debtors are required to complete credit counseling and debtor's education courses when they file for bankruptcy. The New York bankruptcy court websites for each district provide a list of court-approved providers of credit counseling and debtor's education courses. The credit counseling has to be completed within 180 days before filing the bankruptcy case, according to 11 U.S.C. §109(h). The debtor's education course needs to be completed after the case is filed, as stated in Federal Bankruptcy Procedure Rule 1007(b)(7). As of 2010, the prices for both courses range, on average, from $25.00 to $50.00. The prices can vary depending on the company being used and whether the debtor chooses to take the courses online or over the phone.
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Credit Report
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The debtor should acquire a copy of his credit report. A person is entitled to one free copy of his credit report once a year. Credit reports tend to provide the address and/or phone numbers for the creditors listed. Reviewing a credit report is important because the debtor needs to include all of his creditors and their addresses in the bankruptcy case. There are various companies that provide credit reports for free or for a nominal fee. Some New York bankruptcy attorneys may have an account with one of the three major credit bureaus. If the attorney is able to access the client's credit report, that cost may be listed within the retainer agreement and will be considered part of the attorney's fees.
Filing Fees
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The bankruptcy court filing fees are different for each chapter of bankruptcy. As of 2010, the cost of filing a Chapter 7 bankruptcy is $299 and the filing fee for Chapter 13 bankruptcy is $274. Many New York attorneys have an account with the bankruptcy court so they can electronically file their cases. If the debtor's attorney doesn't have an account with the court, or if the debtor is filing the case without an attorney, a filing fee payment will have to be issued directly to the court.
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References
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