Chapter 13 Bankruptcy Cost in Sacramento

The cost of bankruptcy is obviously an important consideration. But how much does Chapter 13 Bankruptcy Cost in Sacramento? Read on to find out this little-known secret.

Unlike Chapter 7 Bankruptcy, most Chapter 13 Bankruptcy fees are capped by the Bankruptcy Court here in Sacramento. Not all bankruptcy attorneys are up front about this fact.

In the Eastern District of California, the bankruptcy court has specified a “standard” attorney fee for Chapter 13 cases. If an attorney decides to accept this fee, this is the maximum amount that he or she will be able to charge the client, absent exceptional circumstances.

The standard fee for a regular Chapter 13 case is $4,000 and $6,000 for business cases. Don’t let these numbers scare you. There is more to the fee than the absolute dollar amount!

Some law firms, such as mine, will take accept a certain percentage of the total fee prior to filing. The rest of the attorney’s fees are paid to the attorney by the Bankruptcy Trustee. Where does that money come from? It comes out of the pot of money that you contribute each month to the Trustee to repay your debts.

The amount that my law firm will accept up-front for a Chapter 13 largely depends on the complexity of your case. Because each Chapter 13 bankruptcy is different, I always want to discuss the particulars of a case with a potential client before quoting a price.

Besides attorney’s fees, there is also a bankruptcy court filing fee for Chapter 13 bankruptcy too. Currently, the filing fee for Chapter 13 is $310. This amount does change from time to time, so be sure to check with the court or my office if you want to know the current filing fee.

Please call my office at (916) 333-2222 if you have any questions about Chapter 13 Bankruptcy in Sacramento.

Attorney Rick Morin