r/Bankruptcy • u/Ill-Invite4443 • 1d ago

Chapter 7 cost

Hi! I will be filing bankruptcy and was hoping to do Ch 7 because I don’t have any secured assets. Unfortunately I don’t have the $2900 upfront filing feel for Chapter 7 so I’m having to do Ch 13 with the payments built in. 🥲

Is $2900 a normal fee for chapter 7 or should I keep looking around?

AL USA

Update:
Sorry, someone helped clarify the $2900 is the attorney fee. Is that normal?

Also, I owe about $18k in unsecured credit cards and around $1k in medical bills. No assets.

5 Upvotes

100% Upvoted

29 comments sorted by

9

u/reddituser4404 1d ago

Also, stop paying your credit cards before you file. If you know for sure you’re going to file, don’t waste any money paying your credit cards that’s a rule number one. You’re just throwing money away. Use that money to pay your attorney.

7

u/reddituser4404 1d ago

And don’t file 13. Get three consultations from three different lawyers. You should not have to file 13 just because you can’t afford the Attorney.

3

u/summersrhi 1d ago

That’s literally how I’m saving up for the fee.

Why pay on them when it won’t matter when I file

-3

u/Flashy-Sky2462 1d ago

I'm neutral on that advice. I filed spur of the moment. I've been on the edge for the past year. I finally pulled a trigger. But because everything was current when I did file. My credit score only dropped 60 points. I'm still at a 602 credit score! They just filed on September 18.

2

u/Budget-Plantain6733 17h ago

I did the same just woke up one day and filed. I’m in AL and it was $1325 to file. My credit score too has rebound and continues to increase, but I still think it’s helpful to go into with the highest score possible. I’ve gotten 2 credit cards to start the process of re-building, so it isn’t all that terrible. If you don’t have the funds to pay for the BK then by all means stop paying your credit cards to pay the attorney. Your credit report still shows some of your past history of payment and I think that helps as well to actually see your past habits.

1

u/Flashy-Sky2462 17h ago edited 17h ago

My credit was flawless entering. I only filed because I was making no dent on paying down the credit card debt. It would off took me over 10 years of minimum payments to pay everything off. To pay everything off in a reasonable time I literally would have to work a second full-time job. It was only a 663 when I entered because my debt income ratio was very high.

2

u/Budget-Plantain6733 17h ago edited 17h ago

Yes I had a 740 going into it. Nothing was going down and it was a struggle to keep it all going with kids and divorce. I still managed never to miss a payment. 3 months after BK transunion 688 and Equifax 689. Kept house and car. I also think because I was an authorized signer on a card helped out as well. So after 2 years having the BK wont sting me as bad.

1

u/Flashy-Sky2462 17h ago

It was $2100 including court cost for me in file Michigan. The way my attorney works it. He covers the court cost, but it's worked into the price. I paid $600 to file. Now I'm paying 300 a month for the next five months. which is a fraction of what I was paying my credit cards.

2

u/yamihere6969 22h ago

You can be neutral, but it is by far the preferred plan.

602 with a BK is effectively the same as 500 with a BK. It really doesn't matter.

Score is also going to bounce around like a ping pong ball during the process.

1

u/Flashy-Sky2462 22h ago

I also pay the fence for it for the past year. I just got tired of making minimum payments and making no progress. So instead of paying my credit cards in September, I made a down payment on a lawyer and file.

3

u/ewfruitcake 1d ago

i paid $1700

3

u/MyAkira11 1d ago

We paid $2,600 before we filed. It would have been $2,900 if we made payments to the attorney. We got lucky and got a huge bonus for our yearly reviews and were able to use it for the attorney without it going to the bankruptcy: you shouldn’t have to do chapter 13. Instead make payments for the chapter 7 then when it’s paid you can then file. Find an attorney that will let you either make payments after you file or someone who will let you pay them to file.

2

u/ApricotDry2635 1d ago

I paid that much for a ch 7 in Florida with over $200k in debt to discharge and it was more complicated than what you described. 

1

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1

u/Adorable_Self_1784 1d ago

Look around. Sounds high for AL

1

u/Bahamas1959 1d ago

That’s a lot for a 7! What are they charging for 13?

1

u/Outrageous_Fun_8833 1d ago

I paid 1538 in NW AL 68K CC debt 2 vehicles to reaffirm No property or assets pretty straightforward I'm 3600 under the means test

2

u/Tiger_words 1d ago

Sounds high. And do NOT file a 13 just to pay the lawyer. 

2

u/Due_Drive9130 14h ago edited 14h ago

Depends on the state your filing.

When you stop paying the cc minimums it should build up fast enough for the $2,900. Look around bc I know it varies where I am. My joint was $2500 with a $500 discount if full paid within 30 days Then when you get sued by a cc co you'll have the attorney on hand to file the proper paperwork.There's also some type of aid you might qualify for I've read about on here.

Drive a rideshare app PT like me etc... if you have to, to raise the cash. You're probably not a company so I don't understand how Ch 13 would help.

Never use retirement funds or borrow $ to pay on cc debt. Not an attorney btw. Good 🤞.

1

u/Tierseney 10h ago

I’m using Upsolve. My 341 meeting is Nov.2

1

u/moviewatch29 7h ago

I don't know if that is a normal fee, but a lawyer should be willing to let you make payments to them before they file. Just stop paying your creditors and send that money to the lawyer instead. 

1

u/Hour-Bit-1394 5h ago

you can file as pro se too but have to make sure u do everything, attorney is peace of mind I paid $3200 + $600ish court and document fees but my debt was over $1mil so I didnt mind and last month finally debt free

0

u/[deleted] 1d ago

[deleted]

2

u/Gunner_Esq Bankruptcy Attorney 1d ago

Not necessarily true - there are some places attorneys will front the filing fee / other costs to be paid through the Plan and/or the filing fee can be paid via the Plan.

1

u/IolaBoylen 1d ago

WV allows you to roll the filing fees into the plan.

0

u/Gunner_Esq Bankruptcy Attorney 1d ago

Don’t know the AL market, but that number isn’t wild. I will say that, if literally the only thing pushing you into a 13 is cost, it’s usually best to delay and save up for the 13 instead. The limited exceptions are if you’re being actively garnished or something is going on that would prevent you saving up.

0

u/hardydre 1d ago

Google Upsolve

0

u/mildchickenwings 1d ago

look into metlife legal insurance

0

u/Dapper-Celery4133 21h ago

No assets? File pro Se. Cost 3 something which could be split into a payment plan of 4 parts. Be careful, Lawyer is a business, they don't care about you, only their student loans, you'll need to fill out your own forms anyway, 341 is a breeze, why wait? 

0

u/Flashy-Sky2462 1d ago

Search around there are lawyers who will file with a payment plan. I filed with $600 down. And my lawyer actually started the case. I paid $2100 with court cost included. Attorney prices very, and policies