Chapter 13 is a more specialized type of Bankruptcy. Chapter 13 is a Court Ordered restructuring payment plan that can last for 3 to 5 years. A Chapter 13 can immediately stop foreclosures, garnishments, judgments and creditor harassment. The majority of Chapter 13 clients choose this Chapter to protect an asset or because their income is too high. The restructuring plan pays different creditors at different amounts. When done properly, a Chapter 13 can eliminate large debts while protecting assets. Consultations are free; know your options before you have none.
In most Chapter 13 cases, the Attorney fee is built inside the repayment plan and paid by the Chapter 13 Trustee. The Courts allow attorneys to charge $3,500.00 for a standard Chapter 13. I have lowered this amount many times for easy cases. $3,500.00 is a lot but remember that is paid by the Chapter 13 Trustee.
Filing Fee: The Court will charge $310.00. This is usually paid electronically at the time of filing. There are ways to pay this amount directly to the Court on installments.
Credit Counseling: You will also need to complete credit counseling prior to filing. Credit counseling is simple and done online in about 45 minutes. There are many Court approved credit counseling agencies; most charge approximately $20.00.
Credit Report: I pull credit reports on every client. A single credit report costs $33.00 and a joint report costs $63.00. This credit report is much more detailed than the free reports advertised on TV and greatly help my ability to offer the best legal advice.