How much will it cost to declare bankruptcy?

Are you thinking about declaring bankruptcy? Are you curious about how much it will cost or worried that it will cost too much for you? Read below to learn more about the average cost to file for bankruptcy in Tennessee. 

Average Cost of Filing Chapter 7 Bankruptcy

Court Costs

For Chapter 7 bankruptcy, the current court cost for Tennessee (2020) is $338. However, if your income is less than 1.5x the poverty level, the bankruptcy court may waive that fee.

Attorney Fees

Attorney fees for Chapter 7 are typically paid upfront and average $1,200 depending on the complexity of your case. If you have very few creditors or mostly secured credit, that may be reduced to $800 to $900.

However, if you have a small business case or one with a significant number of creditors, or if an attorney needs to compute the means test, the cost may run at least $1,200 up to $5,000.

Most attorneys, including our team at Mayer & Newton, are able to work out a payment plan with our clients. The bankruptcy filing for Chapter 7 begins when all of the attorney fees are paid upfront.

Average Cost of Filing Chapter 13 Bankruptcy

For Chapter 13 reorganization bankruptcy, the fees generally range from $1,500 to $3,000. All of the attorney fees are included within the cost and is generally spread out over the term of the Chapter 13 payment plan. The fees for the plan are awarded by the bankruptcy judge and are to be paid by the bankruptcy trustee with your payment plan.

Request a Free Consultation to Discuss Your Debt Relief Options

If you are interested in learning more about your debt relief options and the cost of bankruptcy, contact our team for a free consultation.  

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