All The Costs That Go Into Chapter 7 Bankruptcy

The primary costs of filing chapter 7 bankruptcy consist of (1) attorney fees, (2) the court filing fee, (3) credit counseling and (4) optional fees such as ordering a credit report, tax transcript or real estate appraisal.

Attorney Fees

Many articles have been written about how much a bankruptcy attorney costs, but the general range in Sacramento is $500 to over $2,000.  Some of the cheapest bankruptcy attorneys can be found on Craigslist and some of the most expensive are on television ads.  To find an effective middle ground many consumers look to the internet.  Many reasonably priced bankruptcy attorneys with favorable reviews can be found with a simple Google search and quick phone consultation. 

$335 Chapter 7 Court Filing Fee

As of 2017 the chapter 7 court filing fee in the Eastern District of California is $335.  If clients cannot pay the entire $335 before filing a filing fee installment plan may be obtained.  When the court approves such a filing fee installment plan the entire $335 court filing fee can be paid over 4 months after the case is filed.  Filing fee installment plans allow clients to pay a little over $83 a month for 4 months while their case is pending with the automatic stay in place.

Credit Counseling

Credit counseling is required before a chapter 7 bankruptcy petition can be filed.  Fortunately, internet credit counseling can cost as little as $15.  Telephone credit counseling can cost more, typically $35.  To learn more about credit counseling visit DECAF, a U.S. Trustee approved agency.

Optional Fees

Optional fees that may not be required in every case include costs associated with ordering credit reports, tax transcripts and real estate appraisals.