What Are Bankruptcy Filing Fees? Haven’t I paid My Attorney Enough?

I am of the belief that I work for my clients, and thus I try to provide the best possible customer service. This includes collecting fees for petition filing and credit counseling, so that I can properly make these payments for them. However, I have noticed that clients are often taken aback when I first explain that filing bankruptcy requires fees in addition to my own.

At their attorney, I sometimes even sense a hint of resentment towards me when these fees are explained. I believe this stems from the fact that my clients are already deep in debt when I come along as the bearer of bad news, explaining additional costs they will incur.

Unfortunately, there are monetary costs associated with filing your bankruptcy petition with the US Bankruptcy Courts that I have no control over. In an attempt to soften the blow, below are some of the fees you may face when filing bankruptcy in Arizona.

Let’s start with court filing fees. As specified by the United States Bankruptcy Court for the District of Arizona website, there are specified fees due to the courts at the time of petition filing. For an Arizona chapter 7 bankruptcy, the filing fees are $299. For an Arizona chapter 13 bankruptcy, the fees are $274. Additional fees are applied for any amendments, conversions or other changes to the petition after it is filed.

In addition, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act now requires that debtors participate in credit counseling classes. These can be completed in person, online or by phone. Classes are offered by trustee approved agencies at an additional fee off approximately $30.

Additional fees may pop up during the course off your bankruptcy filing. You will need to make several copies of important documents, which can add up if you don’t have access to a personal copier. A notary is necessary when filing documents, and may require an additional fee if you do not have access to one (though check at your local bank, they are often offered as a complementary service). In addition, during the course of your bankruptcy the trustee will request a set of documents from you that will need to be returned by mail. Again, this may cost an additional few dollars.

Finally, there will be attorneys fees associated with bankruptcy. These may seem exorbitant, but properly preparing a bankruptcy petition that maximizes both your allowable exemptions and your discharged debt is time consuming and tricky.

I like to tell my clients to think of it this way. If you have decided to file bankruptcy, you are likely facing the prospect of discharging large amounts of debt. Furthermore, you may have valuable assets to protect from the bankruptcy trustee. These values likelt amount to far more than what you will pay in fees to both your attorney and the courts.

As one last reminder, if you have decided to file for chapter 7 discharge of debts there is no reason to continue paying down your credit card bills. Many of my clients have extraordinary high minimum balances on their credit cards, attributable to high balances and outrageous interest rates. If you save the money you would normally apply to these monthly payments, you will likely accumulate your bankruptcy fees in no time and at no additional hardship.