A Guide to Colorado’s Bankruptcy Filing Fees and Costs

A Guide to Colorado’s Bankruptcy Filing Fees and Costs

Filing for bankruptcy in Colorado can be a crucial step toward financial recovery. However, understanding the fees and costs involved in the process is essential. This guide outlines the various fees associated with bankruptcy filings in Colorado, helping you to navigate the process with confidence.

Types of Bankruptcy in Colorado

In Colorado, the two most common types of bankruptcy that individuals can file for are Chapter 7 and Chapter 13. Each type comes with its own set of filing fees and costs.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," is designed for individuals who cannot repay their debts. The primary cost associated with filing for Chapter 7 includes:

  • Filing Fee: The standard filing fee for Chapter 7 is approximately $338.
  • Credit Counseling Course: Before filing, individuals must complete a credit counseling course, which typically costs between $20 and $100.
  • Legal Fees: Hiring an attorney can range from $1,000 to $2,500, depending on the complexity of the case.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, known as "reorganization bankruptcy," allows individuals to create a repayment plan to settle their debts over three to five years. The associated costs are generally as follows:

  • Filing Fee: The filing fee for Chapter 13 is around $310.
  • Credit Counseling Course: Like Chapter 7, a credit counseling course is required, costing between $20 and $100.
  • Legal Fees: Attorney fees for Chapter 13 can vary widely, typically ranging from $2,500 to $6,000, based upon the complexity of the case and the lawyer’s experience.

Additional Costs to Consider

In addition to filing fees and legal costs, there are other potential expenses to keep in mind:

  • Mandatory Debtor Education Course: After filing, you will need to complete a debtor education course, costing around $20 to $100.
  • Cost of Credit Reports: Obtaining your credit report may incur fees of about $30 to $50.
  • Other Court Fees: Depending on your case, there may be additional court fees for motions or applications to the court.

Fee Waivers and Payment Plans

If you are facing financial hardship, Colorado offers the possibility to apply for a fee waiver. This applies primarily to individuals with low income, allowing them to have the filing fees waived if they meet specific criteria.

Additionally, some bankruptcy attorneys may offer payment plans, enabling you to spread out your legal fees over time rather than pay a lump sum upfront.

Conclusion

Filing for bankruptcy in Colorado involves various fees and costs that can add up quickly. By understanding these expenses and planning accordingly, you can ensure a smoother bankruptcy process. Always consider consulting with a qualified bankruptcy attorney who can provide tailored advice based on your unique financial situation.