Introduction
Filing for bankruptcy can be a complex and overwhelming process. One of the primary concerns individuals have when considering bankruptcy is the cost involved. In this article, we will explore the cost of filing bankruptcy in Tennessee (TN) and provide a comprehensive overview of the expenses associated with this legal procedure.
Types of Bankruptcy
Before delving into the cost of filing bankruptcy in TN, it is essential to understand the different types of bankruptcy available. The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves the liquidation of non-exempt assets to repay creditors. The cost of filing Chapter 7 bankruptcy in TN typically includes attorney fees, court filing fees, and credit counseling fees.
Chapter 13 Bankruptcy: Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan to pay off debts over a period of three to five years. The cost of filing Chapter 13 bankruptcy in TN includes attorney fees, court filing fees, and credit counseling fees, similar to Chapter 7 bankruptcy.
Attorney Fees
When filing for bankruptcy in TN, it is highly recommended to hire an experienced bankruptcy attorney to guide you through the process. The attorney fees can vary depending on the complexity of your case, the attorney’s experience, and the location within Tennessee.
On average, the attorney fees for a Chapter 7 bankruptcy in TN range from $1,000 to $2,500. For a Chapter 13 bankruptcy, the attorney fees can range from $3,000 to $5,000. These fees typically cover the attorney’s time, expertise, and representation throughout the bankruptcy proceedings.
Court Filing Fees
In addition to attorney fees, there are court filing fees associated with filing for bankruptcy in TN. These fees are set by the United States Bankruptcy Court and are subject to change. As of the time of writing, the court filing fees for bankruptcy in TN are as follows:
– Chapter 7 Bankruptcy: $335
– Chapter 13 Bankruptcy: $310
It is important to note that these fees may be subject to change, so it is advisable to check the current fees with the United States Bankruptcy Court for the most accurate information.
Credit Counseling Fees
As part of the bankruptcy process, individuals are required to complete credit counseling from an approved agency before filing for bankruptcy. These credit counseling sessions aim to provide individuals with financial education and guidance.
The cost of credit counseling in TN can vary, but it typically ranges from $20 to $50 per session. Individuals are required to attend two sessions: one before filing for bankruptcy and one before receiving a discharge.
Additional Costs
While attorney fees, court filing fees, and credit counseling fees are the primary costs associated with filing bankruptcy in TN, there may be additional expenses depending on the complexity of your case. These additional costs may include:
– Bankruptcy education course fees
– Trustee fees
– Costs for obtaining credit reports
– Costs for obtaining required documents
It is crucial to discuss these potential additional costs with your bankruptcy attorney to ensure you have a clear understanding of all expenses involved.
Conclusion
Filing for bankruptcy in TN incurs various costs, including attorney fees, court filing fees, and credit counseling fees. The total cost will depend on the type of bankruptcy filed, the complexity of the case, and the location within Tennessee. It is essential to consult with an experienced bankruptcy attorney to understand the specific costs associated with your situation.
References
– United States Bankruptcy Court for the Middle District of Tennessee: www.tnmb.uscourts.gov
– United States Bankruptcy Court for the Eastern District of Tennessee: www.tneb.uscourts.gov
– United States Bankruptcy Court for the Western District of Tennessee: www.tnwb.uscourts.gov
