If you are considering filing for bankruptcy, you are likely in a state of financial trouble as it is. So you likely do not want to add to this burden with the legal fees and costs associated with a bankruptcy petition. Read on to discover how much it may cost to file for bankruptcy and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can advise you on how to pay it off.
How much does it cost to file for bankruptcy in New York State?
The New York bankruptcy court may increase the cost of a bankruptcy filing from time to time. But as of 2020, the total that an individual must pay alongside their bankruptcy petition is estimated to be $338 or $313 for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, respectively. Of note, this amount is typically due in full at the time of your filing.
In addition, you may be expected to sign up for credit counseling within six months before filing your bankruptcy petition. The approved providers typically charge anywhere between $15 to $30. Though, you may argue that the law requires the provider to provide you with this counseling without regard to your ability to pay.
What’s more, you may be required to take a debtor education course if you want the court to relieve you of your dischargeable debts. These courses tend to cost $35, more or less. Though, you may be able to negotiate this fee.
How can I pay off this cost?
Understandably so, individuals who are declaring bankruptcy may require some financial relief in their legal proceedings. If this is your case, then you may request the New York bankruptcy court to either pay off this cost in installments or even waive the fee entirely.
If you are requesting installments, then you must fill out Form 103A, Application for Individuals to Pay the Filing Fee in Installments. Here, you must state that you intend to pay off this cost in four or fewer installments and within 120 days of your filing date. And if you are requesting a waiver, you must fill out Form 103B, Application to Have Chapter 7 Filing Fee Waived. Here, you must state that your income is below 150 percent of the poverty line.
Importantly, this may only apply if you are undergoing a Chapter 7 bankruptcy. This is because you are expected to have enough money to fund a three- to five-year repayment plan in a Chapter 13 bankruptcy. Therefore, the court expects that you have enough money at the time your bankruptcy petition fee is due.
A competent Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. are here whenever you are ready to initiate your bankruptcy filing. Simply contact our firm at your earliest possible convenience.