Bankruptcy Attorney Fees by State

Chapter 7 bankruptcy, also called liquidation bankruptcy, eliminates most unsecured debts like credit cards, medical bills, and personal loans. A court-appointed trustee reviews your assets and may sell non-exempt property to pay creditors. Most Chapter 7 cases are 'no-asset' cases where filers keep all their property through available exemptions.

Chapter 7 bankruptcy costs include a $338 court filing fee and attorney fees that typically range from $900 to $2,200 depending on your location and case complexity. You will also need to pay for a required credit counseling course ($15-$50) and debtor education course ($15-$50). Some courts offer fee waivers for filers below 150% of the poverty line.

Most Chapter 7 filers keep their home and car through state or federal exemptions. Each state sets exemption amounts that protect a certain amount of equity in your home, vehicle, and other property. If your equity exceeds the exemption limits, the trustee could sell the asset, but this is relatively uncommon. An attorney can help you understand your state's specific exemption amounts.

The means test determines whether your income is low enough to qualify for Chapter 7. It compares your average income over the past 6 months to your state's median income for your household size. If your income is below the median, you automatically qualify. If above, a second calculation of disposable income determines eligibility. Failing the means test means you may need to file Chapter 13 instead.

A Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date. However, many people see their credit scores begin to recover within 1-2 years as they rebuild credit with secured cards and responsible borrowing. The fresh start from eliminating unmanageable debt often allows faster financial recovery than continuing to struggle with payments.

Chapter 13 bankruptcy allows individuals with regular income to reorganize their debts into a manageable 3-5 year repayment plan. Unlike Chapter 7, you keep all your property and catch up on missed mortgage or car payments over time. At the end of the plan, remaining eligible unsecured debts are discharged.

Chapter 13 bankruptcy costs include a $313 court filing fee and attorney fees ranging from $2,200 to $5,000 depending on location and complexity. Attorney fees are usually paid through the repayment plan itself rather than upfront. You will also pay for mandatory credit counseling and debtor education courses, typically $30-$100 total.

Chapter 13 repayment plans last either 3 or 5 years. If your household income is below your state's median, you may qualify for a 3-year plan. If your income is above the median, the plan must last 5 years. Monthly payments are based on your disposable income after necessary expenses, and the plan must pay certain priority debts in full.

Yes, filing Chapter 13 immediately triggers an automatic stay that stops foreclosure proceedings. Your repayment plan allows you to catch up on missed mortgage payments over 3-5 years while continuing regular monthly payments. This is one of the most common reasons people choose Chapter 13 over Chapter 7 — it provides a structured way to save your home.

Chapter 7 liquidates non-exempt assets to discharge debts in 3-6 months, while Chapter 13 creates a 3-5 year repayment plan. Chapter 7 has income limits (means test), but Chapter 13 has debt limits. Chapter 13 lets you keep all property and catch up on secured debts, making it better for homeowners behind on payments. Chapter 7 is faster but may not protect all assets.