When filing for Chapter 13 bankruptcy , most debtors are concerned about how much it will cost them. Below is a breakdown of what Chapter 13 bankruptcy can cost a debtor.
Chapter 13 Bankruptcy Costs
Monthly Creditor Payments
The monthly payments required to pay off debt is the base figure of any Chapter 13 bankruptcy cost. It’s important to remember, that this figure is different for each debtor depending on what type of debts they have and how much they owe. Because some debts are fully repayable in Chapter 13 bankruptcy, such as a mortgage, nondischargeable student loans, a car loan and other secured debts while unsecured debts might be only partially repayable, the base payment amount can change from one debtor to another.
Administrative Costs
All administrative costs must be paid in full in Chapter 13 bankruptcy. Administrative costs include the filing fee, bankruptcy attorney fees and the bankruptcy trustee fee. The bankruptcy filing fee is typically around $300, while bankruptcy attorney fees can have a wide range depending on the complexity of the case. Bankruptcy attorneys will discuss the fees in-depth before beginning the case so the debtor will understand how much they will face in costs. The debtor is usually not expected to pay the full amount of attorney’s fees before the Chapter 13 bankruptcy case begins. Usually, the attorney’s fees are added to the monthly payments as long as the additional payment does not make the Chapter 13 bankruptcy plan unfeasible. Finally, the bankruptcy trustee fees are a percentage of the monthly payment which can range from 3 percent to 10 percent of the debtor’s monthly payment.
Are you Considering Chapter 13 Bankruptcy?
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