Most potential clients that I meet with at Halcomb Singler, LLP, regarding bankruptcy expect that if they decide to retain me to file their bankruptcy that I will charge a fee. However, there are some additional fees that debtors will have to pay to get through bankruptcy.
Prior to filing a bankruptcy there is a requirement that debtors complete a credit counseling course. This course can be done online, over the phone or in person with a credit counselor. Your attorney should be able to give you the name of a credit counselor to contact to satisfy this requirement. The fees between credit counseling companies vary. The particular counselor that I recommend to clients charges $35.00. Once you have finished the course the credit counselor will typically e-mail your attorney a copy of your certificate of completion for filing with the court.
Once your bankruptcy petition has been prepared and it is ready to file you will need to pay a filing fee. In the Southern District of Indiana, Indianapolis Division, the required filing fee is $299.00 for a Chapter 7 Bankruptcy and $274.00 for a Chapter 13 Bankruptcy. What is a filing fee? This is a fee that must be paid to the court in order to file the initial documents required in a bankruptcy case. The fee does not go to pay your lawyer. It is used to pay for the operation of the bankruptcy court and the trustee who reviews your bankruptcy case. Typically a debtor will pay this filing fee to his or her attorney, who will then pay it to the Court on the date of the filing of your bankruptcy petition.
If the filing fee is going to break you, talk to your attorney about the option of paying the fee in installments or having the fee waived altogether. In the Indianapolis bankruptcy court the filing fee for a Chapter 7 can be broken down into 4 installments if the court approves. Typically, a debtor would pay $75.00 to the Court on the date of filing, $75.00 another thirty (30) days after filing, $75.00 sixty (60) days after filing and $74.00 ninety (90) days after filing. I typically recommend that my clients do not ask the Court for permission to pay their filing fees over time because if the debtor is late on a filing fee installment then their bankruptcy petition is dismissed and they have to start again at the beginning, which is going to cost them additional attorney fees and filing fees. However, it is an option. In addition, in a very few cases it is possible to have the filing fee reduced or waived altogether. In a debtor cannot afford the filing fee a motion can be filed to have the filing fee waived. However, the judge may only waive your filing fee if your income is less than 150% of the official poverty line applicable to your family size and you are unable to pay the fee in installments. If you ask the judge to waive your filing fee this will require an additional hearing in front of the judge. It is very rare to have the filing fee waived. In fact, I have never had it happen in one of my cases. I do recall one case where the filing fee was reduced to $100.00, but that has only happened once.
Once your bankruptcy petition has been filed there will be an additional fee to complete the financial management course. Typically this fee is lower than the credit counseling course and is normally $10.00 to $15.00. This is a very important course because if you fail to take it your case will be closed without a discharge. If you are interested in addition information on the financial management course please see my previous blog posting on financial management.
As you can see, it is important not only to factor in the cost of attorney's fees if you are filing a bankruptcy, but also the additional fees that people often overlook. Since these fees can run almost $350.00 they should be taken into account when you are budgeting how to pay for your bankruptcy.
For a free initial consultation at Halcomb Singler, LLP, Carmel, Indiana, cal 317-575-8222 to set up an appointment or click here and our office will contact you to set up an appointment. These appointments typically take about an hour and we can explore whether or not you are a good candidate for bankruptcy and discuss other options that may be available to help you deal with your debt.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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