Almost every potential client asks this question even before coming into our office for a bankruptcy consultation. They are experiencing a financial crisis when they meet with us so the fear of what it will cost to file Chapter 13 is often one of their top concerns. As a full-service bankruptcy law firm, we are dedicated to helping Mount Holly residents find an affordable solution to their debt problems. In some cases, this may require filing a bankruptcy and, in other cases, there may be bankruptcy alternatives that will give the debtor the best results in his or her situation. Regardless of what type of debt solution the client requires, we want to find an affordable solution that will meet the client’s needs but not cause more stress than the client is already experiencing. This includes finding a way to handle the cost to file Chapter 13 bankruptcy.
Why is the Cost to File Chapter 13 Bankruptcy More than a Chapter 7 Case?
The cost to file Chapter 13 bankruptcy is higher than the cost for filing a Chapter 7 case. The main reason is that the Chapter 13 case is much more complex than a Chapter 7 case due to the bankruptcy plan and various motions that must be filed in addition to the standard bankruptcy forms filed in a Chapter 7 case. The bankruptcy plan is the detailed description of how the debtor intends to repay his or her creditors. Within the plan are detailed motions that may or may not apply to the case as well as other sections that require complicated calculations in order to ensure that the plan is feasible and will be confirmed. If the plan is not confirmed, the attorney must re-calculate the figures to file and serve an amended plan.
The Chapter 13 plan is not the only reason why the cost to file Chapter 13 bankruptcy is higher than a Chapter 7. The attorney spends many more hours preparing a Chapter 13 case prior to filing; however, he also spends many more hours dealing with the various issues that are unique to a Chapter 13 case after the case has been filed. In order to compensate the attorney for the hours that he must invest in this case to protect the debtor’s assets, propose the lowest confirmable plan payment and deal with creditors that oppose the plan, he must charge a higher fee.
In some cases, debtors may be able to pay a portion of the attorney fee through the Chapter 13 plan. This lowers the upfront cost to file a Chapter 13 bankruptcy. The bankruptcy consultation is free; therefore, it is in your best interest to take advantage of the free advice to find out if a Chapter 13 case is right for you.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
If you are experiencing financial problems due to debt, contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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