FAQ - Costs Associated With Bankruptcy Filing in South Carolina

• How much does it cost to file for Chapter 7?
• How much does it cost to file for Chapter 13?
  
• Why does the attorney charge more than the bankruptcy petition preparers do?
• What other costs can I expect to incur in bankruptcy?
  

Questions and Answers

How much does it cost to file for Chapter 7?

The attorney's fees for chapter 7 are $1500. This fee may increase in unusual cases, but most cases will incur this charge exactly. This fee must be paid in full prior to filing. I do allow debtors to formulate their own payment plans that they can live with.

How much does it cost to file for Chapter 13?

In Chapter 13, due to the more complex nature of the filing and the need for a plan and confirmation process, the attorney's fees are $2500. Typically, $1500 is expected prior to filing, and the remainder is incorporated into your payment plan. As with Chapter 7, I allow Chapter 13 debtors to form a payment plan to remit their fees prior to filing.

Why does the attorney charge more than the bankruptcy petition preparers do?

In a word: value. Bankruptcy petition preparers cannot by law offer you legal advice. All they can do is put text and numbers into the forms' blank spaces. They can't tell you, for instance, which exemptions to claim, or how to structure your payment plan. That's what an attorney is for - that is the value she delivers. Additionally, the 2005 bankruptcy law amendments significantly increased the amount of work required of attorneys who represent consumer debtors.

What other costs can I expect to incur in bankruptcy?

You will be expected to pay the cost of filing fees - $274 for Chapter 13, $299 for Chapter 7.  Typically, you can expect to pay around $50 or so for credit counseling (required prior to filing - your attorney will have more information; you must take this counseling from an approved agency). There may be additional costs incurred for credit reports, reproduction of tax transcripts, valuation of property, and retention of experts in the event of litigation. If your case presents an unusual question, or if a creditor disputes the dischargeability of your debt, or some other litigation occurs, usually an attorney will charge additional amounts. My fees are based on my hourly rate which is $175. This is competitive for the area, and less than many attorneys charge. However, I usually charge flat rate fees for most common additional events in bankruptcy (such as reaffirmation agreements). Finally, you'll be required to undergo a debtor financial education course prior to receiving your discharge; costs for this course vary but are similar to the required credit counseling.

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The Law Office of Sheryl Sisk Schelin is a debt relief agency under the laws of the United States, including the Bankruptcy Code, and assists its clients by helping them to file for relief under the Bankruptcy Code, among other solutions, and as appropriate to their individual needs.