Removing The Darkness Of Debt
So You Can Face A Brighter Future

How Much Does It Cost To File For Bankruptcy?

As the founding attorney of The Law Office of Andrew M. Doktofsky, P.C., I understand that being in debt is stressful. Finding an experienced bankruptcy lawyer should not be. The first question that most people have when considering bankruptcy is “how much does it cost to file for bankruptcy?” My philosophy in setting a fee for a bankruptcy filing is that bankruptcy is not a “one size fits all” area of practice. By that, I mean that I do not charge the same flat fee for every case. However, my fee structure is very straightforward and is based on the estimated complexity of each particular client’s case.

First things first – the fee for a bankruptcy filing will of course depend on whether you file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. You can read more about the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy here.

The attorney’s fee is in addition to the filing fee charged by the U.S. Bankruptcy Court, which is $338 for a Chapter 7 bankruptcy, and $313 for a Chapter 13 bankruptcy. You are also required to take an online credit counseling course prior to filing for bankruptcy. You can take the course for $15 at the following website: Credit Counseling Course. After the bankruptcy case is filed, you must take a course in personal financial management, also online. The post-filing course costs as little as $10.

A Word About The Means Test

Whether you can file for Chapter 7 bankruptcy is determined by the means test. The means test is comprised of your gross income, including your spouse’s income, as well as any other sources of income, other than Social Security. If your gross income (including your spouse if married) is less than the median income for New York State, you will qualify for a Chapter 7 bankruptcy. If you are above the median income for New York State, your eligibility to file for Chapter 7 will be determined by deducting from your income certain standard expenses, as well as other expenses specific to your situation, such as your mortgage payment.

I will perform a means test analysis for you at no charge. This way, you will know if you qualify for a Chapter 7 bankruptcy before any fees are paid.

Determining Attorney’s Fees For A Chapter 7 Bankruptcy Filing On Long Island

Unlike many attorneys, I will gladly quote you a fee on the telephone after discussing the particulars of your situation. However, to give you an idea of what it will cost you to file for a Chapter 7 bankruptcy, below are estimates of what the fee would be based on a variety of common scenarios, from the lowest to the highest fee.

Keep in mind that these are examples only. The fee in your case will depend on the specific facts of your situation. The attorney’s fee is in addition to the court filing fee ($338).

Sample fees for a Chapter 7 bankruptcy filing:

Example 1

  • You are retired and living on a fixed income such as Social Security or Disability.
  • You do not own a home.
  • Fee for a single filing is $1,500. Fee for a joint filing is $1,500.

Example 2

  • You are working and are paid wages.
  • Or, you are married and both you and your spouse are working and being paid wages.
  • Your gross income or your combined gross income is below the median income for New York State.
  • You do not own a home.
  • Fee for a single filing is $1,500. Fee for a joint filing is $1,800.

Example 3

  • You are working and are paid wages.
  • Or, you are married and both you and your spouse are working and being paid wages.
  • Your gross income, or your combined gross income, is above the median income for New York State.
  • You do not own a home.
  • Fee for a single filing is $1,700. Fee for a joint filing is $2,000.

Example 4

  • Same facts as Example 3, except you own a home.
  • Fee for a single filing is $1,800. Fee for a joint filing is $2,100.

Example 5

  • You are married.
  • You are self-employed, running a small one-person business, such as a home improvement contractor; or you own a small business, such as a deli or retail shop.
  • Your spouse is working and being paid wages.
  • Your combined gross income is above the median income for New York State.
  • You own a home.
  • Fee for a single filing is $2,000 to $2,500. Fee for a joint filing is $2,300 to $2,700.

All Chapter 7 fees must be paid prior to the filing of the bankruptcy petition. Attorneys that accept payments for attorney’s fees after the filing of a Chapter 7 bankruptcy are violating the automatic stay and discharge injunction provisions of the Bankruptcy Code. This is because attorney’s fees owed in a Chapter 7 case are no different than any other dischargeable, pre-petition debt – that is, they are discharged and cannot be collected once the case is filed.

Determining Attorney’s Fees For A Chapter 13 Bankruptcy Filing

My standard fee for a Chapter 13 bankruptcy is generally between $4,500 and $5,500, depending on the complexity of your case. Of this fee, at least $2,000 must be paid prior to the bankruptcy filing. The remainder of the attorney’s fee is paid back as part of your Chapter 13 repayment plan.

For debtors who are behind on their mortgage, Chapter 13 also allows for what is known as “Loss Mitigation”. This is essentially a process in the Bankruptcy Court where the debtor is given an opportunity to enter into a loan modification with their mortgage lender. For Chapter 13 cases of this type, my fee is generally $5,500, which, in most cases, must be paid prior to the case being filed. This includes all work necessary to file the bankruptcy case; file a motion to request loss mitigation; and all work involved in submitting the loan modification request.

Contact Me Today To Discuss Your Options

If you live in Nassau County, Suffolk County, or New York City, and are considering bankruptcy, please feel free to call me at 631-812-7712 to discuss your situation. You can also contact me online. After speaking with you, I will be able to quote you a fee for a Chapter 7 or Chapter 13 bankruptcy filing.

This is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.