- Completing a credit counseling course approved by the bankruptcy court is a requirement when filing for bankruptcy. Credit counseling provides debtors with an opportunity to assess their income and expenses. According to 11 U.S.C. §109(h)(1), the credit counseling course needs to be completed within 180 days of filing for bankruptcy. The cost of credit counseling courses varies depending on the state where the course is taken and the company chosen. A list of approved credit counseling courses is provided on the U.S. Department of Justice website. Typically, the course lasts about 90 minutes and can be taken online or over the phone.
- Bankruptcy legal fees for Chapter 13 cases may vary from $2,000 to $4,500 depending on the state where the case is filed and the amount of work that needs to be completed for each client. The lawyer may require the client to pay a certain percentage of the overall fee upfront prior to the case being filed. The remainder of the attorney fees can be included as part of the bankruptcy payment plan. Carefully review the retainer agreement to ascertain what legal services the attorney is providing and the cost of those services. As of 2010, the Chapter 13 bankruptcy filing fee is $274.
- Complete and pay for the personal financial management course after filing for bankruptcy. According to Bankruptcy Rules 1007(b)(7) and 1007(c), a personal financial management course needs to be completed and filed with the bankruptcy court within 45 days after the meeting of creditors. The cost of the course varies depending on the state where the course is taken and the company used. The U.S. Department of Justice website provides a list of court-approved financial management course providers. Once the two-hour course is completed online, a certificate of completion will be emailed or mailed by the course provider.
- The trustee determines how much the debtor needs to pay each month for the duration of the bankruptcy; it is based on the amount of the debtor's disposable income and the amount of debt owed. The trustee reviews the claims submitted by creditors and the information provided in the debtor's bankruptcy petition. The trustee needs to make sure the debtor is able to repay a certain amount of his debts while having enough money to cover basic monthly expenses. If a feasible payment plan cannot be created, the trustee will recommend the case be dismissed.
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