How Much Does it Cost to File Bankruptcy in Arizona?

The reason a person decides to file bankruptcy is because they can’t pay their bills. It’s gotten to the point where they don’t even have enough to pay their mortgage. With the COVID-19 pandemic, things are even worse. What is a person supposed to do is they don’t have money to pay their bills, but they can’t afford to file bankruptcy? This is a question a lot of Arizona bankruptcy attorneys are asked, especially over the phone. People are scared so they call our office and ask how much it costs to file bankruptcy. When we tell them, they say they don’t have that kind of money and hang up. Or, they say that, if they could afford to pay the filing fee, they wouldn’t need to file bankruptcy. That is more than an overstatement. If you’re in debt for a few hundred dollars, then bankruptcy is not an option. Here, we’ll talk about how much it costs to file bankruptcy. We’ll also discuss what options you may have if you can’t afford to pay the whole fee.

How Much Does It Cost to File a Chapter 7?

The current fee to file a Chapter 7 bankruptcy in Arizona is $338. If you aren’t able to pay the entire thing at once, the court will usually allow you to pay it in installments. Just keep in mind, they will not file your petition until the final amount has been paid. So, if you filed your papers on June 1, 2021, but didn’t pay the full amount of the $338 until September 1, 2021, your official filing date will be September 1, 2021. This means that your automatic stay period is not going to go into effect until you’ve officially filed. It also means that creditors can continue to pursue you until your entire fee has been paid. This can be frustrating. Your Arizona bankruptcy attorney can help you complete the hardship form so you can make the request to pay the fee in installments. There is no guarantee that your request will be approved. However, it is unusual for the court to deny such a request, especially if you’re filing a Chapter 7. They understand that people who aren’t in financial distress don’t tend to file for bankruptcy.

Can’t Your Arizona Bankruptcy Attorney Get the Fee Waived?

Some people believe that they can get the fee waived if they have a financial hardship. This is not true. There are limited circumstances in which the court may waive the fee but they are few and far between. Your Arizona bankruptcy attorney will go over your situation and let you know if you may qualify for a fee waiver. Just don’t get your hopes up as there are very strict requirements for the waiver. Technically, your income has to be less than 150% of the poverty line in order to even be considered for a waiver.

Do You Have to Pay Your Arizona Bankruptcy Attorney Too?

Unlike a personal injury case, when it comes to a bankruptcy, you do have to pay your Arizona bankruptcy attorney a fee. As sympathetic as they are, they cannot work for free. They are not allowed to pay the fee for you, and they cannot front the fee on your behalf. What they can do is guide you through the process and work hard to get your bankruptcy approved so you can move on with your life. All you have to do is call and set up a time to meet with one of our skilled Arizona bankruptcy attorney.