Many of the people who call my office ask what will it cost to file Chapter 7 Bankruptcy. They see advertisements for $199 bankruptcy filings or Billboards in Lansing Advertising “Bankruptcy Starting at $299”. Like everything else, if it sounds too good to be true it probably is. The $199 filings are generally advertisements by petition preparers, non-attorneys that will fill out the paperwork for you. We will address their services in a seperate posting. The $299 posting I recently noticed was from a Lansing Attorney. I don’t know what services he or she provides for $299 dollars, but the words “starting at” raise a red flag with me, and they should with you.
As of February 2010, the Chapter 7 Bankruptcy Filing Fee was $299.00 dollars. There is your $299.00. In addition, all debtors are required to file a certificate of Credit Counseling prior to filing and a certification that they have completed a Debtor Education Course within 45 days of the meeting of creditors. Depending upon you financial situation, and who provides you with those certificates, your cost will be between $60.00 and $150.00, unless the fees are waived due to your inability to pay. If you filed your own petition, without an attorney or a petition filer, it would cost you between $359 and $449 dollars.
Attorneys will charge you either a set fee, or on an hourly basis. Hourly rates will vary, with most Bankruptcy Attorneys charging between $150 and $250 per hour. If the attorney charges a set fee, that fee usually includes only the preparation of the petition and attendance at the meeting of the creditors. If you plan to hire an attorney to represent you in a Chapter 7 filing in Michigan you can anticipate a fee of between $900 to $3,000 plus the cost of the counseling and the filing fee. If an attorney advertises a fee less than $1,000 chances are the fee does not include the filing fee or the required counseling certificates. In addition, attorneys may charge additional fees for services such as reviewing reaffirmation agreements, legal advice for issues arising after the filing of the petition, responding to creditor correspondence, motions to dismiss, examinations under oath, etc. Make sure you know what the attorney will charge for these items in the event they become an issue.
If you are interested in our Chapter 7 charges you can visit us at www.debtreliefmichigan.com
