Bankruptcy Costs
Chapter 7: Liquidation + $245 filing fee $75 administrative fee $15 trustee surcharge $335 total fee
Chapter 7 is for individuals who have financial difficulty preventing them from paying their debts and who are willing to allow their nonexempt property to be used to pay their creditors. The primary purpose of filing under chapter 7 is to have your debts discharged. The bankruptcy discharge relieves you after bankruptcy from having to pay many of your pre-bankruptcy debts. Exceptions exist for particular debts, and liens on property may still be enforced after discharge. For example, a creditor may exercise the right to foreclose on a home or repossess a car.
Chapter 12: Repayment plan for family farmers or fishermen $200 filing fee + $75 administrative fee $275 total fee
Similar to chapter 13, chapter 12 permits family farmers and fishermen to repay their debts over a period of time using future earnings and to discharge some debts that are not paid.
Chapter 13: Repayment plan for individuals with regular income $235 filing fee + $75 administrative fee $310 total fee paid the court to file.
Chapter 13 is for individuals who have steady income —and would like to pay all or part of their debts in installments over a period time and to make like more manageable. You are eligible for chapter 13 only if your debts are not more than certain dollar amounts set forth in 11 U.S.C. § 109.
Chapter 11: Reorganization $1,167 filing fee + $550 administrative fee $1,717 total fee to the court.
Chapter 11 is often used for reorganizing a business, but is also available to individuals.
Just this year in February 2020, a new provision of the code went into effect. Trump has signed it into law last year. It is a new option for businesses with a smaller total debt amount.
The new SUB V chapter is like a larger Chapter 13. Making it easier for businesses to access their options and afford protections from creditors under the bankruptcy code.
This is fairly new and approximately only 500 businesses have filed for bankruptcy protection under this provision. But thankfully it is now an option. Especially due to COVID related set backs unforeseeable for businesses and many minority business owners