How Much Does Chapter 7 Bankruptcy Cost?

Filing Chapter 7 bankruptcy involves a few expenses. The largest expense will be hiring a bankruptcy attorney to draft the bankruptcy documents, protect your property, and represent you at the meeting of creditors. Fairfield bankruptcy lawyer Adam Garcia charges a flat fee for most chapter 7 bankruptcy cases. For a firm quote over the phone, call his office at (916) 500-0704.

Apart from attorney fees, you will also have to pay the court filing fee. As of 2020, the chapter 7 bankruptcy court filing fee in Fairfield is $338. However, many clients qualify for an installment plan for the court filing fee. Through an installment plan, you will pay a little over $80 per month for 4 months with the first payment due after your chapter 7 bankruptcy case is filed. Note – the court filing fee will be paid directly to the court; not your bankruptcy attorney. The fee funds court operations and compensates the chapter 7 bankruptcy trustee who has the authority to sell any property that can’t be protected in bankruptcy.

Don’t worry too much about the trustee selling your property if you have a bankruptcy lawyer. Your bankruptcy attorney will either be able to protect all your property or give you a clear idea of what property can be sold before your case is filed – so don’t worry too much about the trustee if you have a lawyer representing you.

The last expense will go towards the required education courses. Everyone who files chapter 7 bankruptcy (with limited exceptions) must take credit counseling before filing and a personal financial management course after filing but before obtaining a discharge order. Your Fairfield bankruptcy lawyer will refer you to online course providers. In most cases, the courses can be completed in an hour online and only cost $15 per course.

To summarize, the cost of filing chapter 7 bankruptcy in Fairfield is comprised of:

1. Attorney Fees – only $900 in most cases with bankruptcy attorney Adam Garcia.
2. Court Filing Fee – $335, but your attorney may be able to put you on a 4-month installment plan.
3. Online Courses – $15 for each course depending on the provider.

What Debts Can I Eliminate in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a powerful tool for eliminating debt and getting a fresh start. If your bankruptcy lawyer properly lists your creditors you can eliminate:

• Credit Cards
• Medical Bills
• Payday Loans
• Repossessions
• Foreclosures
• Other Unsecured Debts

You’ll still be liable for some debts after chapter 7 bankruptcy. For instance, most student loans don’t go away after chapter 7 bankruptcy. Likewise, you’ll still have to pay on your car if you want to keep your car and stay current on your mortgage if you want to keep your home.

Can I File Chapter 7 Bankruptcy?

Not everyone qualifies for chapter 7 bankruptcy. To file chapter 7 bankruptcy your total income for the past 6 months must fall below a certain threshold. If your income is over that threshold your bankruptcy attorney will have to run a calculation called the “means test” to see if you qualify for chapter 7 bankruptcy. If you fail the means test (in other words, you make too much money) you can’t file chapter 7 bankruptcy; however, you may be able to file chapter 13 bankruptcy depending on the amount of unsecured and secured debt you owe.

In addition, to qualify for chapter 7 bankruptcy you must not have received a discharge in chapter 7 bankruptcy within the past 8 years. The 8 year waiting period between chapter 7 bankruptcies is measured from filing date to filing date, not discharge date to filing date.

When Is Chapter 13 Bankruptcy My Best Option?

Most people file chapter 7 bankruptcy, but in some cases, chapter 13 bankruptcy is a better option. In chapter 13 bankruptcy you can stop foreclosure and keep your home, repay tax debt without high interest, and keep property that would otherwise be sold in chapter 7 bankruptcy.

In Chapter 13 Bankruptcy You Can Stop Foreclosure and Save Your Home.

In chapter 13 bankruptcy you can both stop foreclosure and keep your home, whereas a house in foreclosure is usually sold in chapter 7 bankruptcy. Once a chapter 13 bankruptcy petition is filed with the court the automatic stay in bankruptcy will stop a pending foreclosure action. Once filed, your chapter 13 bankruptcy attorney will propose a repayment plan in which you will repay the late mortgage payments over 5 years while keeping current on future mortgage payments. Since you’ll be in chapter 13 bankruptcy making your monthly plan payments the bank can’t foreclose on your home during the 5-year repayment process. After you’ve made all your payments you’ll be current on your mortgage and out of bankruptcy.

Serving Northern California

Bankruptcy attorney Adam Garcia represents clients across Northern California. From his Sacramento office, he files cases from many Northern California cities including Chico, Modesto, and Fairfield.

Free Phone Consultation

The first step to eliminating your debt is a free phone consultation. To receive a free consultation call $900 bankruptcy lawyer at (916) 500-0704 Monday – Saturday from 8 AM to 6 PM.