The answer you are looking for is an Alabama bankruptcy costs about $1500 attorney fee plus $338 ($245 filing fee $78 administrative fee + $15 trustee surcharge) for chapter 7.
Chapter 13 bankruptcy is about $4000 attorney fee plus $313 ($235 filing fee + $78 administrative fee).
More about the different types of bankruptcies in our next Blog.
More Bankruptcies Coming
The reasons and benefits of filing one of the various bankruptcies are discussed in our next post, but after a small reduction in 2024, the Department of Justice is projecting a large increase in bankruptcy filings in the coming months and will predict filings to double over the next three years. There are many factors for this expectation that you can read more about the in reference cited at the bottom. In short, bankruptcy filings are on a steep increase.
Cost to File Chapter 7 (The most common bankruptcy)
As of 2024, Chapter 7 attorney fees in Alabama typically cost $1250 to $1538 plus filing fees. But you may qualify for a waiver on your filing fees if your attorney knows the law and how to apply for the fee waiver (1). There are many Facebook and internet sites offering free information and consultations, but some online sites ask for details of your life so they can give you a more exact quote. Generally expect to pay about $2000 up front to stop the creditors. Not many attorneys will accept payments for Chapter 7, but if you go to a more complex type of bankruptcy like Chapter 13, almost all attorneys do arrange for payments through the trustee. It all depends on what relief you are looking for; ask an attorney.
What Determines the Cost?
- Type of Bankruptcy
- Attorney support and experience
- Type and quantity of assets want to protect
- Location of your attorney
- Hours your attorney puts into your case. The dollar amounts provided are not flat rates.
Required Credit Counseling Course and other costs
Alabama bankruptcy costs will include some things you might not have considered. Anyone that files for bankruptcy must take a credit counseling course and a debtor education course—they are available online for less than $50. You may also have to pay for a credit report and of course you have to pay for your own transportation to the attorney and to court when necessary.
Go here for more information, Bankruptcy | Stanley & Associates (stanley-law.com), and look for our next BLog on different types of bankruptcies. And remember, the internet is a poor substitute for a licensed Alabama Attorney.
(1) You may be eligible to have your Chapter 7 bankruptcy filing fees waived if you are below 150% of Alabama poverty guidelines. For a two-person household if you make less than $20,440 a year you may qualify for a waiver.
No representation is made that legal work to be performed is greater that that of other Alabama licensed bankruptcy attorneys.
