Exploring Your Options

• The first step of filing for Chapter 7 protection is a fact-finding mission to learn if you qualify under the terms of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. You'll also need to know how much of your property is exempt from being liquidated to pay your creditors under New Jersey law. Some bankruptcy attorneys in New Jersey offer free consultations so you can find out where you stand before you commit yourself to filing a Chapter 7 petition. Before you make an appointment with an attorney to explore your bankruptcy options, ask what his policy is for consultations.
  
  

Attorney Fees

• If you're married and file for Chapter 7 protection, a lawyer will probably charge you more than if you're single, whether or not your spouse is filing with you. If you own any real estate, your attorney fees will also be higher. If you're unmarried and own no real property, lawyer fees for a Chapter 7 can range from $1,100 including court costs or $1,000 plus court costs in northern counties near New York to $1,500 including court fees in the Cherry Hill area, near Philadelphia.
  
  

Fees Required by the Court

• To qualify for a Chapter 7 bankruptcy, you must attend credit counseling with a service approved by the court before filing, and again before the court discharges your debts. The cost of each session in New Jersey is about $50. You must also pay fees to the United States Bankruptcy Court to file your petition. As of 2011, the filing fee for a Chapter 7 proceeding in New Jersey was $299, and this includes administrative and trustee fees. If the attorney you choose does not include these fees in his charge to you for handling your case, you'll have to pay them over and above your attorney costs.
  
  

Tips

• Some attorneys will work with you on a payment plan to cover their fees, so ask about this when you meet for a consultation. The Bankruptcy Court will also work with you with the filing fees if you qualify. You can pay the $299 in four installments with the court's permission, once a month for the first four months after you file your petition. Under some circumstances of hardship, the court can extend this to six months. If you earn less than 150 percent of the federal poverty level, the court can waive the filing fees altogether. In some cases, the court may waive your counseling fees as well.