How Much Does a Chapter 13 Bankruptcy Cost?

person thinking how much does a chapter 13 bankruptcy cost?

One question that people might ask when considering filing bankruptcy is, “how much does a Chapter 13 Bankruptcy cost?” When considering bankruptcy, especially a chapter 13, it’s always good to consider how much the whole court case will cost beforehand. While there are court filing fees and other administrative costs, the actual cost to file bankruptcy can differ case by case and should be discussed with a bankruptcy attorney to get a professional’s opinion on it.

Qualifying For Chapter 13 Bankruptcy

Under Chapter 13 Bankruptcy, also known as the wage earner’s plan, debtors receive not an elimination of their debt but a restructured plan to actually pay back their debt under a repayment plan. This not only lets you save your home from foreclosure but also gives you a breathing room to start paying off the debt in a structured three to five-year plan. 

According to the US Courts, to be able to file for Chapter 13 bankruptcy, your debts have to be under $1,184,200 for secured debts and $394,725 for unsecured debts (these numbers are subject to change). In some cases, Chapter 13 bankruptcy stops foreclosures even after missing a couple of months of mortgage payments. Chapter 13 freezes any move from the bank of selling your property and allows you to start paying back the debt with a solid monthly income shown to the courts.

Under Chapter 13 Bankruptcy, debtors receive 3-5 years to resolve their debt in a payment plan also known as the Chapter 13 repayment plan. This allows creditors to receive their payments and you to keep your property with a court-approved trustee who will collect and allocate the payments.

Usually, the most common reason to file Chapter 13 is if you are behind on the mortgage, your home is getting foreclosed, and you just need more time to catch up on payments. Chapter 13 will stop the foreclosure process and allow you to keep your home, and you can start paying back the mortgage under a repayment plan accepted by the courts. For those that qualify for Chapter 13 bankruptcy, a case will begin with your chapter 13 attorney filing the proper paperwork to the bankruptcy court and freezing any debt collectors from making attempts to collect on your debt.

How Much Do Attorneys Charge for Chapter 13 Bankruptcy?

Getting the best chapter 13 bankruptcy representation does not always mean you’re going to be spending a lot of money. You are already in debt so more debt is not the answer with court fees and lawyer fees. If filing for bankruptcy sounds too costly for you, there are options out there that can make bankruptcy more affordable. Whether you qualify for these options depends on your situation. Talk to our chapter 13 attorneys today to see if there are any fee waivers that you might qualify for. We will also tell you if a chapter 13 bankruptcy is your best option and how it can affect you.

Our Chapter 13 Attorneys are Here to Help

Our chapter 13 bankruptcy attorneys are here to make sure that your bankruptcy case goes smoothly. We have been helping consumers with bankruptcy cases for over 10 years and helped them get back on their feet.

Feel free to call us if you are having trouble keeping up with payments or have questions about bankruptcy in general. Our bankruptcy attorneys will be able to discuss them with you. Call our firm today at (818) 254-8413 for a free consultation.

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