A typical problem facing individuals who are contemplating filing for bankruptcy is how to pay their attorney fees and the court costs associated with filing. We often hear: “I have no money so how am I supposed to pay you?”
A typical bankruptcy case in Ohio can cost an individual a minimum of $1,000.00 or more to file. This makes it difficult to file bankruptcy for a lot of people. The individual must be able to pay for a pre-bankruptcy credit counseling course as well as a post-bankruptcy debtor education course. There is also the court filing fee which is $335.00 for a Chapter 7 and $310.00 for a Chapter 13. There may be other costs such as real estate appraisals, vehicle appraisals, jewelry appraisals, etc. These are just the costs associated with filing. The attorney fee is in addition to these costs and varies based on the attorney’s legal experience/expertise and the complexity of the debtor’s case.
Chapter 7 legal fees typically range from $1000.00 to $1500.00. These fees can be more or less depending on the actual circumstances of the case. Chapter 7 legal fees and costs must be paid in full prior to the bankruptcy being filed with the court, pursuant to law, court rules and ethics rules. Some lawyer’s require these to be paid within a limited time frame (i.e. all fees must be paid within 90 days). Our office will work with you to set up a payment plan that fits with your circumstances and budget. It is important to note that certain circumstances may require a bankruptcy case to be filed immediately in which cases payment plans may not be beneficial.
A Chapter 13 bankruptcy often presents an individual with a way to get a case filed with less money needed up front. There is still a pre-bankruptcy credit counseling fee and a filing fee of $310.00. The legal fee in a Chapter 13 does not have to be paid in full before filing. The legal fees can be included in the payment plan that is paid to the Court monthly. The individual pays the Chapter 13 Trustee and the Trustee disburses the legal fees to the attorney. The fee can be paid out over time ranging from 12 months or longer depending on the facts of each case. Chapter 13 attorney fees are set by local rules and the Court. Under the right set of circumstances the case can be filed without paying any legal fee up front. The legal fee is much higher than in a Chapter 7 due to the length and nature of Chapter 13 bankruptcies. The current legal fee set by local rules in this district is $3500.00. This is the same at every lawyer’s office in Southern Ohio. Our office is currently filing Chapter 13’s without any legal fees up front in most circumstances. The exceptions are complicated cases and business cases.
It is very important to review your circumstances with a bankruptcy lawyer to determine your fee and to determine how to get your case filed.