Chapter 13 Bankruptcy Cost and Effectiveness

  • bankruptcy

Chapter 13 Bankruptcy Cost and Effectiveness

When you are struggling with debts, you are probably considering bankruptcy via Chapter 7 or Chapter 13. Once, after assessing different eligibility criterions, you lock upon Chapter 13, the next question is to determine how effective it is and what would be an estimated cost for the same. We will try to explore an estimate of some of the costs and effectiveness of the whole process using the survey results of the readers. If you have still not determined whether to go for Chapter 13 or Chapter 7, consider logging in to Recovery Law Group for information about eligibility and other salient features of each chapter to make a wiser decision. To start with let’s identify a range of all the costs associated with Chapter 13.

  1. Cost of an attorney

The attorney cost can range from $1,500 to about $5,000. The survey shows a good chunk of people paying between $0 to $3,000. To be specific, 24% of readers confirm to have paid below $1,500 and 39% readers confirm to have paid between $1,500 to $3,000. This makes for 63% in the range of $0-$3,000. 30% people paid between $3,000- $5,000. While 7% of people ended paying more than $5,000. Depending on the complexity of the case, you are likely to end up in the $0-$3,000 range or $3,000-$5,000 range. In rare circumstances, you might end up paying above $5,000 as per the survey.

The cost of attorney also depends on various factors like an attorney, win percentage history, bankruptcy filing state, etc. Most of the attorneys usually charge a flat fee that includes most services a common bankruptcy case would need. An additional $310 on an average might have to be kept aside as filing fee. There are bankruptcy court rules and regulations or guidelines that control pricing for the services offered by the attorneys too. The range for attorney cost as per a few states can be listed as follows-

  • Texas attorneys might charge you between $3,000-$3,825
  • California attorneys might charge you between $3,300-$5,000
  • Florida attorneys estimate ranges between $3,500 to $4,500
  • Michigan would be between $2,600 to $3,650
  • Finally, Virginia would be $4,000 to $5,100

What potential reasons could hike your attorney cost?

  • If you are a sole proprietor and filing for bankruptcy under Chapter 13
  • If your house is less worth when compared to the amount you owe. You might want to seek a release of debt for the amount in excess of the worth
  • If you want to release a student loan or similar kind of priority or non-releasable loans
  • If there is any suit involved along with bankruptcy

Chapter 13 payment plan completion survey

Chapter 13 bankruptcy consists of a payment plan which lasts for 3-5 years depending on the amount of debt and the disposable income. The survey about how many people ended up dismissing the payment plan before the stipulated duration and how many people ended up completing the payment plan shows interesting results leaving us not much to pick between them. While 48% of people ended up completing their payment plan tenure, 52% of people were successful in dismissing the case before the tenure actually ended. By this stat, there is a small majority of people who ended up stabilizing their financial condition and cleared of all dues before their payment plan concluded. This could be an encouraging start.

Time factor

Time is another important aspect of the bankruptcy filing. The tenure or duration of payment plan is known by all, however, the time consumed to get the plan approved and the formalities of bankruptcy court can only be figured out by the people’s feedback who have gone through the whole process. While a large chunk of people about 58% confirm the whole process taking less than 3 months, you can be rest assured that under most circumstances, the process should not take more than 6 months. Adding 32% of readers contributing to 4-6 months range, it is about 90% of people who have got their payment plan and other Chapter 13 bankruptcy procedure done in less than 6 months. Under rare circumstances would you take over 1 year as the probability based on survey results is mere 4%.

Satisfaction degree

After the whole process, the ultimate thing that matters is the satisfaction level. The survey has thrown up mixed results and it is difficult to assess how successful Chapter 13 has been for our readers. While only 40% of people say they were satisfied with the Chapter 13 results, 16% maintain a neutral approach and 44% people, on the other hand, were dissatisfied. It could be that the whole process is slightly frustrating and expensive to their liking or readers think they ended up paying most of their debts, difficult to analyze possible repercussions of this survey results.

If you are looking forward to a smooth Chapter 13 bankruptcy experience with consistent and professional support, do get in touch with us at +1 888-297-6203.