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How Much Does It Cost to File Bankruptcy in Arkansas?

February 16th, 2016 Bankruptcy
file bankruptcy in Arkansas

If you are falling behind on credit card payments, being constantly harassed by creditors or collection agencies, or thinking about filing for bankruptcy, you are probably first weighing how much it actually costs to file bankruptcy in Arkansas. Although the court fees associated with filing bankruptcy are set by the state in which you file, attorney’s fees are up to the discretion of the attorney you hire to represent you. Depending on the type of bankruptcy you wish to file and the complexity of your case, the amount you could potentially pay for help in your bankruptcy proceedings will vary.

Chapter 7 vs Chapter 13 Bankruptcy

When you’re filing for bankruptcy, chances are you’ve heard that you can file for one of two types of bankruptcies: Chapter 7 bankruptcy and Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, you may be able to completely liquidate your debt. Chapter 13 bankruptcy allows you to settle a repayment plan with your creditors to repay a portion or all of your debts while under protection of the bankruptcy court. The property and other assets you can exempt from your bankruptcy filing depends largely on whether you choose to file under Arkansas bankruptcy exemptions or those offered under federal exemptions.

Court Fees for Filing Bankruptcy

In Arkansas, as of 2014, bankruptcy court fees are set at $310 for a Chapter 13 bankruptcy filing and $335 for a Chapter 7 bankruptcy filing. This is a fee you must pay in addition to any attorney’s fees. This fee pays for the bankruptcy court filing itself and is non-refundable. If you hire an attorney to reopen a bankruptcy case or change the chapter of a bankruptcy filing, expect to pay an additional fee. Note that if you are unemployed or in a particularly tight financial situation, you may be able to waive your fee or pay it off in installments.

Attorney Fees for Filing Bankruptcy

There is no set cost for Arkansas bankruptcy attorneys, no matter the type of bankruptcy you intend to file. However, your attorney’s fee has to be disclosed to the bankruptcy court in your state and approved by a judge just to make sure the fees are reasonable in your case. Every bankruptcy case is different, and therefore, your lawyer may charge anywhere from $500 to $6,000+ depending on the complexity of your case.

Nationally, most attorneys’ fees for a Chapter 7 bankruptcy amount to a flat fee between $500 and $3,500 and require payment before the case is filed.

For a Chapter 13 bankruptcy, attorney’s fees vary according to the court’s guidelines for the amount of work required. You can expect to pay between $2,500 and $6,000 or more. Higher amounts are usually reserved for larger businesses or individuals with many assets, so most consumers can expect an attorney’s fee on the lower end of this spectrum. In contrast with a Chapter 7 filing, if you file Chapter 13, your attorney may ask for a portion of their fee upfront and then add the remaining fee into your scheduled repayment plan.

What About Low Cost Bankruptcy Advertisements?

You may have seen ads for low-cost bankruptcy attorneys, but be careful. Some of these low-cost attorneys will get quote your case at a lower rate and then charge more as the bankruptcy filing proceeds. They may charge you extra if you file jointly with your spouse, if you have debt that is higher than what their initial fee will cover, or if you have more creditors then an arbitrary limit they set. These charges are often for items only intended to increase your bill, but usually do not increase the workload for the attorney.

The amount an attorney charges is not indicative of the quality of the work being performed in helping you with your bankruptcy proceedings. Many lawyers provide a free initial consultation, which allows you to meet with your prospective attorney and determine if they are the right fit for you.

If you are looking for help from a bankruptcy attorney in Arkansas, contact Nolan Caddell Reynolds at 866-242-0452. With offices in Rogers and Fort Smith, we can help answer any questions you have about filing for bankruptcy in Arkansas.

I recently had to make to difficult choice to file Bankruptcy due to a life-changing heart condition at the peak of my career. It’s not an easy choice to make when you’ve managed a finance company for a living, and yet it became imperative for my survival and wellness. With horrible regret, I visited Caddell Reynolds for my first consultation. I think in a short while I knew I was on the right track. They say first impression is key, and I was placed at ease with the incredibly empathetic front desk coordinator, Yolanda. She knew I was nervous, and helped me feel welcome and informed. My attorney, was engaged in my journey, understood my pain and immediately addressed my worries with a solution. My attorney truly has treated my like an individual case, caring about my needs and why I was having to file. I had a team of excellent staff that provided a professional experience with a wonderful attitude and work ethic that has made a life changing event bearable. Brooke whom assisted my attorney is amazing and personable very attentive. The little time I had to spend in the office was great. I couldn’t recommend the Caddell Reynolds team enough- the team starts at the door with the incredible Yolanda to greet you when you walk in!

Michael A.