Financial struggles can feel overwhelming, but you don’t have to navigate them alone. Since 1907, Simon Fitzgerald LLC has been Louisiana’s oldest and most trusted bankruptcy law firm. With over a century of experience and more than 50 years focused exclusively on bankruptcy law, our team is here to provide the clarity and support you need.
We understand the financial challenges you’re facing and offer:
- FREE consultations (in-office or by phone).
- $0 Down Chapter 13 filings with no attorney fees paid upfront.
- Innovative, flexible Chapter 7 payment plans.
- Transparent fee structures
- No hidden costs. Payment plan solutions for Chapter 7 bankruptcy.
- Pro Bono Services: In some cases, individuals who meet certain income requirements may be eligible for pro bono legal services provided by volunteer attorneys. Our attorneys can help connect you with organizations that offer pro bono services and explore if you qualify for this assistance.
If you’ve wondered, “How much does it cost to file for bankruptcy?” We’re here to provide transparent answers and personalized options.
Chapter 13 Bankruptcy: Affordable and Accessible
Chapter 13 bankruptcy is known as a “wage earner’s plan.” It’s a way to stop foreclosures, repossessions, and debt collectors. Even though Chapter 13 costs more overall, many people choose it because it has lower up-front costs. In most Chapter 13 cases, you don’t have to pay the lawyer’s fees up-front. You pay them monthly as part of your payment plan. This makes Chapter 13 a good option if you need help right away from the people you owe money to.
$0 Down, No Attorney Fee Up Front
In most Chapter 13 cases, people do not need to pay bankruptcy attorney fees upfront. Instead, the attorney fees and other legal expenses are built into your monthly repayment plan and paid to the Chapter 13 Trustee over time. Chapter 13 bankruptcy offers a cost-effective solution for wage earners seeking relief without the immediate financial burden of attorney fees. Here’s how it works:
- No attorney fees are required upfront.
- Attorney Fees Built into Your Monthly Plan: Legal fees and other costs are included in your monthly repayment plan, which you will pay to the Chapter 13 Trustee over time.
- Court Filing Fee: $313
- Other upfront costs include credit counseling and credit report fees that are often paid before filing.
- Filing fees can be paid in installments. In some cases, these can be split into manageable installments.
This structure makes Chapter 13 an accessible option for wage earners who need relief without the immediate financial burden of paying large legal costs. Bankruptcy court fees and related miscellaneous costs, like credit counseling and credit report fees, are typically paid before filing. Still, in some situations, they can be split into smaller, manageable installments.
Benefits of Chapter 13 Bankruptcy
- Immediate creditor protection
- Property Protection: Chapter 13 allows you to keep all your property, including non‑exempt assets that would be sold in a Chapter 7 bankruptcy. This is particularly beneficial if you have significant equity in your home or other valuable assets that you want to keep.
- Asset Protection – Preventing Foreclosure or Repossession: Chapter 13 allows you to avoid foreclosure or repossession and catch up on missed mortgage or car loan payments through the repayment plan.
- Halts Wage Garnishments and Collections: Immediate relief from aggressive creditors.
- Structured Repayment Plans: Tailored to your income and expenses, allowing you to catch up on secured debts like mortgage and car payments.
- Co‑signer Protection: If you have co‑signed loans, Chapter 13 can protect your co‑signers from being pursued by creditors, as long as you keep up with your repayment plan.
- More Debts Can Be Discharged: Certain debts that can’t be discharged in Chapter 7 may be wiped out in Chapter 13. These include some types of tax debt, marital debts from a divorce settlement agreement, and debts from willfully damaging property or causing injury.
- Lien Stripping and Cramdowns: Chapter 13 offers the possibility of removing secondary mortgages or reducing the principal loan balance on secured debts under certain conditions.
- Managing Certain Types of Debts: Chapter 13 provides a valuable tool for managing certain types of debts that are not dischargeable in Chapter 7, such as certain tax debts or past‑due child support.
- Stability and Control: Chapter 13 provides stability and control over your financial situation by allowing you to create a reasonable and manageable repayment plan.
Chapter 13 stops creditor collection efforts, foreclosures, repossessions, and wage garnishments, giving you the space to regain control over your finances. Unlike Chapter 7, which resolves debts quickly but may involve liquidating assets, Chapter 13, also known as reorganization bankruptcy, lets you create an affordable repayment plan based on your disposable income and allowable expenses. This plan allows you to catch up on missed payments for secured debts, like your home or car, and allows you to keep them.
Although some people inquire about Chapter 7 bankruptcy first, many are surprised to learn how beneficial Chapter 13 can be. It provides relief and flexibility, empowering you to handle your debts in a structured, sustainable way. With only $330.00 typically required upfront for court costs, credit counseling, and credit report fees (and no need to pay attorney fees in advance), this type of bankruptcy has become a preferred option for those who qualify.
For more detailed information about how Chapter 13 works, visit the U.S. Courts website or speak to an experienced bankruptcy attorney who can guide you through the process.
Chapter 7: Bankruptcy: A Quick Path to Debt Relief
Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, is a popular option for individuals looking to eliminate overwhelming unsecured debts and swiftly regain financial control. It is designed to eliminate debts such as credit card debt, medical bills, personal loans, and even money judgments, offering a fresh start in as little as 4-6 months.
It allows individuals to eliminate unsecured debts, such as quickly
- Credit card debt
- Medical bills
- Personal loans
- Money judgments
This quick turnaround makes Chapter 7 an appealing choice for those who need immediate relief from mounting financial stress.
Chapter 7 Bankruptcy: Clear Cost Structure
- Court Filing Fee: $338 (required by the court).
- Attorney Fees: Typically range from $1,200 to $2,200, depending on case complexity.
- Trustee Fees: In Chapter 7 bankruptcy, the bankruptcy trustee assigned to your case may charge a fee for their services. This fee is typically a percentage of the assets they administer.
- Additional Costs: Credit counseling, debtor education or financial management courses, and a detailed credit report are required and usually paid upfront.
For example, cases involving multiple creditors, property disputes, or intricate financial situations may lead to higher fees. Additionally, there are mandatory costs for completing credit counseling and financial management courses, both required by law. You may also need to pay to pull a detailed credit report to confirm all debts are included in your filing. These expenses must generally be paid upfront, unlike Chapter 13 bankruptcy protection, where costs can sometimes be spread out over time.
For those who meet the eligibility requirements, Chapter 7 bankruptcy provides a straightforward and effective way to discharge unsecured debts and begin anew, without the lengthy obligations associated with Chapter 13 repayment plans. While Chapter 13 requires making structured payments over 3-5 years, working with a Chapter 7 bankruptcy trustee allows clients to resolve their debts much faster, often in less than six months. This allows you to focus on rebuilding your credit and financial stability without the burden of ongoing plan payments.
Key Advantages of Chapter 7
- Speed: Resolve debts within 4-6 months.
- Protection: An automatic stay stops creditor harassment, wage garnishments, and lawsuits immediately upon filing.
- Exemptions: Most Louisiana residents find their essential assets—like a home, modest vehicle, and retirement accounts—are protected under generous state exemption laws.
It’s also important to understand that Chapter 7 may require the liquidation of non-exempt assets or property not protected under state or federal exemption laws. However, many people find that most, if not all, of their assets are protected under Louisiana’s generous exemption guidelines.
For instance, essentials like a primary home, a modest vehicle, household goods, and retirement accounts are often shielded from liquidation. This means that while Chapter 7 is called “liquidation bankruptcy,” most filers keep their essential belongings while discharging their unsecured debts.
For those in Louisiana who qualify for Chapter 7, this legal process is often the speediest route to financial freedom. Thanks to the automatic stay—legal protection that prevents creditors from contacting you or pursuing collections—it stops creditor harassment, wage garnishments, and lawsuits almost immediately after filing the bankruptcy petition. Many people view this as an opportunity to regain control over their finances and move forward, free from the ongoing burden of unpaid bills and interest.
If your goal is to quickly eliminate debt, escape the pressure of aggressive creditors, and begin the process of rebuilding your financial future, Chapter 7 bankruptcy can be the right solution. With the help of an experienced bankruptcy attorney, you can determine whether you meet the monthly income and eligibility requirements, weigh the costs of bankruptcy filing, and understand what assets are protected. For many, this legal tool offers a fresh start and a renewed sense of financial freedom.
Why Are Chapter 7 Fees Paid Up Front?
The requirement to pay the entire fee upfront for Chapter 7 creates a potential conflict of interest. Federal laws prohibit attorneys from collecting fees after filing, as unpaid attorney fees are discharged along with other debts. At Simon Fitzgerald LLC, we understand the need for flexibility and can work with you to develop creative payment solutions. While the full fee must be paid before filing, we start preparing your case and advising you immediately. While we cannot file your case until the fee is paid in full, we will begin preparing your case and advise you on how best to handle your creditors during this time.
Understanding Chapter 7 Payment Requirements
While Chapter 7 fees typically need to be paid before filing, we understand this can be challenging. That’s why we offer:
- Flexible payment arrangements
- Clear fee structures
- No hidden costs
- Comprehensive service coverage
Comparison: Chapter 7 vs Chapter 13 Cost
Chapter 7
- Upfront court costs: $338.00
- Upfront legal fees: $1,200 – $2,000.00 (depending on case complexity)
- One-time attorney fee
- Quick debt resolution (4-6 months)
- Immediate relief from debts
- Best for: Those needing immediate debt relief
Chapter 13
- $0 down attorney fees
- $330.00 initial court costs
- 3-5 year payment plan
- Asset protection
- Best for: Income earners needing debt restructuring
FREE Consultations: Get the Answers You Need
In-Office or Telephone Appointments
We invite you to a FREE consultation at one of our offices in Shreveport, Alexandria, Lafayette, or via telephone. Our experienced bankruptcy lawyers are often available for same-day appointments. They will sit down with you in a no-cost, no-obligation free consultation to discuss your financial situation and options for debt relief. Don’t let misinformation guide your decisions; it’s time to get legal advice from an experienced lawyer. Discover your real options rather than relying on hearsay or opinions.
What to Expect
- Comprehensive financial review
- Discussion of available options
- Personalized Advice: Tailored solutions based on your financial situation.
- Answers to all your questions
- No-pressure, honest guidance
- Transparent Costs: A clear breakdown of fees and payment options.
- Immediate Relief: Guidance on stopping creditor actions and protecting your assets.
Can I File for Bankruptcy If I’m Married, And How Will It Affect My Spouse?
Yes, you can file for bankruptcy even if you’re married. Bankruptcy laws allow you to file as an individual or jointly as a couple, depending on your financial situation. If most of the debt is in your name alone, filing individually may make sense, and your spouse’s credit could remain untouched. However, in community property states like Louisiana, things work differently. Debts taken on during the marriage are often considered shared, which means creditors may still hold your spouse responsible.
Filing jointly can simplify the bankruptcy process if you both owe a lot of debt. You’ll address shared obligations in one case, which can save on legal fees and court costs. Filing together can also help you protect personal property like your home or vehicles more effectively by combining your bankruptcy exemptions. On the other hand, if your spouse has little debt or a strong credit score, filing on your own could keep their finances separate and protected.
Keep in mind that not all debts or assets are treated the same. Debts taken on before marriage usually remain separate, while those incurred during the marriage may be shared. Louisiana’s community property laws can complicate things, so it’s important to work with a bankruptcy attorney who can break down your debt relief options clearly and help you decide the best approach to protect your finances.
What Happens To My Co-Signers If I File For Bankruptcy?
Filing for bankruptcy doesn’t automatically protect your co-signers from responsibility for the debt. In Chapter 7 bankruptcy, your obligation to repay the debt is erased, but that discharge doesn’t extend to your co-signers. Creditors can still pursue them for full payment, which can put your co-signer in a difficult financial position.
In Chapter 13 bankruptcy, however, co-signers are often better protected. If the debt is included in your repayment plan and you remain up to date with your monthly payments, creditors are typically unable to take action against your co-signer. This protection allows you to repay what’s owed over time while shielding the person who supported you by co-signing. Understanding how bankruptcy impacts your co-signers is essential, especially if you want to maintain those relationships while resolving your financial issues.
Will I Lose My Retirement Accounts If I File For Bankruptcy?
In most cases, your retirement accounts are safe if you file for bankruptcy. Federal laws protect accounts like 401(k), IRAs, and pensions, which means creditors cannot access these funds to settle their debts. This protection ensures that the money you’ve worked hard to save for your future remains untouched.
Louisiana also offers state-specific exemptions that cover certain other types of retirement plans. These exemptions allow bankruptcy filers to address immediate financial challenges without sacrificing their long-term financial security. By working with a knowledgeable bankruptcy attorney, you can understand which of your assets are protected and how to safeguard your future while finding relief from overwhelming debt.
Are there standard fee arrangements for bankruptcy attorneys in Louisiana, and can these fees be included in the bankruptcy filing?
Bankruptcy attorneys in Louisiana typically charge fees for their services. The fees can vary depending on factors such as the complexity of your case, the attorney’s experience, and the geographical location. While there is no standard fee structure, some common fee arrangements include:
- Flat Fees: Some attorneys offer flat fees, which are predetermined amounts for handling your bankruptcy case from start to finish. This fee arrangement provides clarity on the total cost up front. Most of our cases are quoted on a flat fee.
- Hourly Rates: Attorneys may charge an hourly rate for their time spent on your bankruptcy case. The total cost will depend on the number of hours required to complete the necessary tasks. This option is rare and is usually reserved for our extremely difficult cases.
- Retainers: Attorneys may require a retainer, which is an up-front payment to secure their services. The attorney will bill against the retainer as they work on your case. This option is also rare and is also usually reserved for our extremely difficult cases.
Regarding the inclusion of attorney fees in the bankruptcy filing, they are typically considered a priority debt and may be eligible for discharge along with other qualifying debts. However, it is important to consult with your attorney to determine the specific details based on your circumstances.
Are the attorney fees, filing fees, and other costs for Chapter 7 bankruptcy in Louisiana subject to change, and where can I find the most current information?
Yes, the attorney fees, filing fees, and other costs for Chapter 7 bankruptcy in Louisiana are indeed subject to change. Factors such as court policies, legislative adjustments, or inflation can impact these fees. To ensure you have the most accurate and up-to-date information, it is advisable to call our office using the numbers on this website. Alternatively, you can check the official website of the U.S. Bankruptcy Court for the Western District of Louisiana. They maintain a comprehensive fee schedule that reflects any recent changes. By referring to their website, you can access the latest filing fee information, allowing you to plan your bankruptcy filing accurately.
For more information, you can visit the website of the Western District of Louisiana United States Bankruptcy Court.
Can the filing fee for Chapter 7 bankruptcy in Louisiana be waived or reduced in certain circumstances?
In certain circumstances, the filing fee for Chapter 7 bankruptcy in Louisiana, which is currently set at $338, can be waived or reduced. This provision is designed to assist individuals facing financial hardship who may struggle to afford the filing fee. If you find yourself in such a situation, you can request a fee waiver by submitting an application to the bankruptcy court. The court will evaluate your financial circumstances, considering factors such as your income, expenses, assets, liabilities, and the number of dependents you have.
To qualify for a fee waiver, you must meet specific criteria. First, your income must be below 150% of the federal poverty guidelines. Second, you must demonstrate that you cannot pay the fee in installments over 120 days. It’s also important to note that this provision is only applicable to individuals filing for Chapter 7 bankruptcy; businesses are not eligible.
The application process involves completing Official Form 103B: Application to Have the Chapter 7 Filing Fee Waived. This form requires detailed information about your income, expenses, and assets. It’s crucial to provide accurate and complete information to increase your chances of obtaining a fee waiver.
If your application is approved, the court will waive the filing fee, allowing you to proceed with your bankruptcy case without this financial burden. If your application is denied, the court may allow you to pay the fee in installments. In some cases, the court may schedule a hearing to further evaluate your financial situation.
How do I apply for a bankruptcy filing fee waiver in Louisiana?
In Louisiana, individuals facing significant financial hardship may be eligible for a bankruptcy filing fee waiver. The bankruptcy court recognizes that the filing fee, which is currently set at $338, may pose a challenge for those already struggling with debt. If you’re unable to afford this fee, you can apply for a waiver, which, if granted, exempts you from this payment.
You must meet certain criteria. First, you must be an individual filing for Chapter 7 bankruptcy. Businesses and those filing under other bankruptcy chapters are not eligible. Second, you must be unable to pay the fee in installments over a 120-day period. Lastly, your combined family income must be less than 150% of the official poverty line.
The official poverty line varies based on family size and is updated annually. You can find the current poverty line figures on the U.S. Department of Health and Human Services website. If your income falls below 150% of these figures, you may qualify for a fee waiver.
Complete Official Form 103B: Application to Have the Chapter 7 Filing Fee Waived. This form requires detailed information about your income, expenses, and assets. It’s crucial to fill out this form accurately and honestly, as providing false information can lead to serious consequences, including dismissal of your bankruptcy case.
Qualifying for a bankruptcy filing fee waiver in Louisiana can be a challenging process. While it’s true that the bankruptcy court provides this option for individuals facing significant financial hardship, it’s important to understand that the criteria for qualification are stringent.
The court will scrutinize your financial situation closely. One of the potential hurdles you may face is explaining how you managed to afford attorney fees but are unable to pay the filing fee. These are complex questions that require careful navigation.
At our law firm, we understand the intricacies of these processes and are committed to guiding you through them. We can help you prepare your application for a fee waiver, ensuring that it accurately represents your financial circumstances and addresses potential questions from the court.
However, it’s important to note that the success of a fee waiver application is never guaranteed. The decision ultimately lies with the bankruptcy court. Therefore, it’s crucial to have a clear understanding of your financial situation and explore all available options before proceeding.
What are the eligibility criteria for obtaining a waiver for the bankruptcy filing fee in Louisiana?
To be eligible for a bankruptcy filing fee waiver in Louisiana, you must meet specific criteria established by the bankruptcy court. While the eligibility requirements may vary slightly depending on the jurisdiction, they typically revolve around assessing your financial situation. The court considers various factors, such as your income, expenses, assets, liabilities, and the number of dependents you have.
The primary objective is to determine if paying the filing fee would cause undue hardship for you. The court aims to ensure that individuals who genuinely cannot afford the fee are not prevented from seeking the benefits of bankruptcy relief. It is essential to provide comprehensive and accurate information about your financial circumstances to support your fee waiver request.
Navigating the eligibility criteria for a fee waiver can be complex, but seeking the guidance of an experienced bankruptcy attorney, such as Simon Fitzgerald LLC, can greatly assist you. They have in-depth knowledge of the bankruptcy system and can assess your specific financial circumstances. By analyzing your income, expenses, and other relevant factors, they can determine if you meet the eligibility criteria for a fee waiver. They can guide you through the application process, help you gather the necessary documentation, and present a strong case to the court.
Take the First Step Today! Speak to a Louisiana Bankruptcy Attorney
Ready to take the first step toward financial freedom? Understanding Chapter 7 and Chapter 13 doesn’t have to be complicated. Our free guide simplifies it for you. Our bankruptcy experts are always here to help if you have any specific questions. When you’re ready to seek legal representation, book your free telephone or in-office consultation now to start your journey towards financial stability with Simon Fitzgerald LLC today.
Available in many Louisiana Locations – Call Now to Schedule your FREE consultation.
- Shreveport Office: 318-868-2600
- Alexandria Office: 318-625-7505
- Lafayette Office: 337-984-1584
- Monroe area serviced by Shreveport Office: 318-868-2600
- Lake Charles area serviced by Lafayette Office: 337-984-1584
- Online: Schedule your consultation here.
Don’t let financial stress control your life. At Simon Fitzgerald LLC, we believe everyone deserves access to quality bankruptcy representation. Contact us today to learn how we can help you achieve financial freedom with manageable payment options tailored to your situation.
