There are four costs associated with a chapter 13 bankruptcy; they are credit counseling/personal financial management fees, a filing fee, an attorney fee and the trustee’s costs for administering the chapter 13 plan.
In Alabama, credit counseling/personal financial management fees can range anywhere from $20 to $50. In some cases, these fees can be waived if you cannot afford to pay such fees. The credit counseling course must be taken within 180 days of your chapter 13 filing date and the personal financial management course must be completed prior to you receiving your chapter 13 discharge. Your attorney will advise you on when and how you may complete these courses.
A filing fee of $281 is required to be paid to file a chapter 13 and can sometimes be paid in installments with as little as $50 to be paid up front. In Alabama, the chapter 13 filing fee cannot be waived. Prior to filing your case, your attorney will discuss what options are available for you to pay the filing fee in your district.
An attorney fee is usually paid through your chapter 13 plan rather than paid up front. These fees are monitored and controlled by the bankruptcy court in your district. The attorney fees vary by district and court so your attorney will discuss these fees with your prior to filing your chapter 13 case.
The trustee will also charge a percentage for the cost in administering your plan during the life of your plan. This percentage will not exceed 10% and is usually much lower. Your Bond & Botes attorney will be able to let you know what your chapter 13 trustee administration fee is in your district. Like the attorney fee, this expense is paid through your chapter 13 payments and not upfront.
If you wish to learn more about the costs associated with a chapter 13 bankruptcy in Alabama, contact your local Bond & Botes office for a free consultation.