How much does if cost to file Chapter 13
The simpler answer is it costs $4500.00 plus a filing fee of $310.00 to file a typical chapter 13 bankruptcy. Although there is no standard fee requirement and law firms may charge different amounts, law firms in Arizona typically charge $4500 to file chapter 13. However this can be misleading because all or part of a chapter 13 fee can be paid through the chapter 13 plan so you will not likely have to come up with the full amount to file. The payments in a chapter 13 plan are based on disposable income. The attorney on the case will calculate your disposable income by deducting all of your living expenses, including housing costs, car payments, utilities, groceries, etc. The amount left over is your disposable income. Example, your monthly take-home pay is $4000.00 - monthly expenses of $3700 = disposable income of $300 per month, which would be your proposed plan payment. These payments are applied to arrearages on secured property you keep, attorney fees, trustee administration costs, priority unsecured debts such as nondischargable taxes and student loans, and finally some percentage of general unsecured debts. As a practical matter, your plan payment will be the same regardless of the attorney fees charged because it is based on your disposable income, not on what your attorney charges.
Please note that the fees above are typical and serve only as an example. They are not universal and should not be construed as an offer. If your case involves adversarial proceedings, lien stripping, mortgage loan modification, or other proceedings outside the ordinary course of a basic chapter 13 bankruptcy, additional costs may be incurred. You must consult with Attorney Hollis Joslin or another bankruptcy attorney who will review the specifics facts of your case to determine how much your case will cost.