The cost of filing for bankruptcy in Arizona can be a bit tricky to pin down. In 2024, the filing fee for a Chapter 7 bankruptcy is $338, while a Chapter 13 bankruptcy will set you back $313. But here's the catch: things get more complicated if you decide to hire a bankruptcy attorney or if you're hoping to have the filing fees waived. So, we did some digging and managed to get a ballpark figure for attorney fees in Arizona. We spent around $1,000 on PACER, a public records database that contains bankruptcy attorney fees, and found that the range for Chapter 7 attorney fees is between $925 and $1,500. Keep in mind that this is just an estimate, so if you want a more precise figure based on your location in Arizona, feel free to use the free Arizona bankruptcy cost calculator below.
Now, I don't know about you, but I often find myself wondering how on earth I can afford to file for bankruptcy in Arizona. It's tough enough to pay the bills, especially with interest rates and inflation still causing headaches in 2024. The good news is that many bankruptcy costs, like the filing fee and credit counseling courses, are fairly similar across the board. However, the real wild card is the cost of hiring a bankruptcy attorney, which can vary greatly depending on whether you're in Phoenix or Tucson.
So, the purpose of this article is to break down the estimated all-in costs for you:
- Bankruptcy Attorney Fees
- Bankruptcy Filing Costs
Estimate the All-In Bankruptcy Cost in Your Zip Code
We've been getting a lot of questions about bankruptcy costs in Arizona, so we decided to do something about it. We've gone ahead and built a database of attorney fees just for you. All you have to do is enter your zip code below, and we'll give you an estimate of how much bankruptcy might cost in your city in Arizona.
1. Actual Lawyer Costs By District In Arizona
Although we have provided a range of bankruptcy attorneys' fees above, the exact price will depend on a few more factors. A few factors that affect the overall cost are the bankruptcy lawyer's location, the complexity of the case, the attorney-client relationship, and the expert's degree of knowledge. However, since the location is so important, let's examine the actual costs as indicated by the Pacer filing data.
Arizona District
Spanning a substantial region, Arizona's District includes major cities like Phoenix, Tucson, and Flagstaff. Operating within the Mountain Standard Time zone, this district spans 15 counties and features 15 courthouses with numerous judges presiding over them.
For residents in proximity to these major areas within Arizona's District, the expected bankruptcy filing cost can vary, often falling within a range from $1,795.00 to $3,000.00. It's crucial to bear in mind that this is an estimate, and actual expenses may fluctuate based on factors such as your financial situation and the choice of legal representation.
2. Chapter 13 Bankruptcy Attorney Fees Arizona
Chapter 13 bankruptcy attorneys in Arizona can charge around $4,500 for their services. The actual fee may vary depending on the district. Unlike Chapter 7 attorney fees, which can differ significantly, Chapter 13 fees tend to be more consistent. This is because of something called "no-look fees," which establish a reasonable cost for the services provided. However, it's worth noting that some attorneys may charge an additional hourly rate for any extra work required after filing Chapter 13. So, it's always a good idea to inquire about any potential additional charges.
3. Bankruptcy Filing Costs
Bankruptcy filing costs in the United States are pretty much the same, whether you're in Arizona or any other state. There are some other costs you need to keep in mind when considering bankruptcy.
Bankruptcy Filing Fees
The US Courthouse has this thing called a fee schedule, which tells you how much you gotta pay to file for bankruptcy. They even have a form just for that, you can find all those details on their website.
Now, let's get into the nitty-gritty. If you're looking to file for Chapter 7 bankruptcy, you're gonna have to cough up $338. Yeah, I know, it's not exactly pocket change. But hey, that includes a $245 filing fee, a $78 administrative fee, and a $15 trustee surcharge. Gotta pay to play, right?
If you're leaning towards Chapter 13 bankruptcy, the filing fee drops to $313. Still a pretty penny, I know. This time, it's a $235 filing fee plus that same $78 administrative fee.
Now, here's the kicker. If you're strapped for cash and can't afford the filing fee, don't panic just yet. There might be some options for you. You could try paying the fee in installments, spreading out the pain a little. Or, get this, you might even be able to have the fee waived completely. Yeah, you heard me right. But, before you get too excited, make sure to check out the Arizona filing fee information and the deets below for more info.
Arizona Filing Fee Waiver Guidelines
You might be able to get your filing fees waived, it’s important to check out Arizona’s Chapter 7 Bankruptcy income limits if your income falls below 150% of the Arizona poverty guidelines. The Arizona poverty guidelines are a set of income thresholds that determine if you qualify for certain benefits or assistance programs. In this case, they can also determine if you're eligible for a fee waiver when filing for Chapter 7 bankruptcy. Now, let's take a look at the guidelines for 2022. These numbers represent the maximum income levels for different household sizes. For example, if you're a single person, your income should be below $13,590 to be considered for a fee waiver. If you have a household of two, the income limit is $18,310. And it goes up from there as you add more people to your household. If you have more than nine people in your household, you'll need to add an extra $4,720 for each additional individual. So, if your income falls below these thresholds, you could potentially have your Chapter 7 bankruptcy filing fees waived. It's worth looking into if you're in a tough financial situation. Remember, these guidelines are specific to Arizona, so if you're in a different state, you'll want to check out the poverty guidelines for your area. It's always good to know your options, right?
Mandatory Course Costs
If you’re considering filing for bankruptcy in Arizona, there are a couple of courses you'll need to take. Don't worry, though, you can do them online, which is super convenient. But keep in mind that these courses have to be approved, so you can't just sign up for any credit counseling or debtor education program.
If you're wondering about the cost, well, it's not too bad. On average, you're looking at around $10 to $50 per course. But let's get down to business. You're probably wondering which courses are approved in Arizona. Check out the list of approved Arizona credit counseling courses and the Arizona debtor education courses. You'll find all the info you need, including the cost of each course.
Miscellaneous Costs
Attending a meeting of creditors at the courthouse can be a bit of a hassle. Not only do you have to prepare yourself mentally for the whole ordeal, but you also have to think about the practicalities, like getting there. In addition, you might have to pay for your transportation too. Your attorney might be able to lend you a helping hand. They could assist you in obtaining a credit report, which is another thing you might have to pay for. But hey, if they can save you some money on that, it's worth considering. But let's get back to the transportation expenses. You're probably wondering how much it's gonna set you back. It depends on which bankruptcy court you'll be heading to. Each court is located in a different place, so the costs can vary.
We’ve made it easier for you to figure that out by hovering over to your district using this interactive map below showing bankruptcy courthouses in Arizona and looking up your nearest bankruptcy court.
Will Inflation Affect the Cost To File Bankruptcy in Arizona?
There's been some talk about inflation and its potential impact on attorney fees. Specifically, people are wondering if inflation will slow down enough to prevent attorney fees from rising. Let's dive into this topic and explore whether inflation could affect the filing fees and attorney costs in Arizona. First things first, let's talk about the filing fee for bankruptcy. As of December 1st, 2020, the Chapter 7 bankruptcy filing fee was updated from $335 to $338, while the Chapter 13 bankruptcy filing fee went from $310 to $313. Now, these changes are pretty minimal, so I wouldn't expect them to have a negative impact on you. However, when it comes to attorney fees, things might be a bit different. You see, inflation can lead to higher costs for bankruptcy attorneys. They might have to pay more to their employees and face increased living expenses, especially in cities like Tucson, Mesa, and across Arizona. So, while the filing fee might not be affected much by inflation, you might see some inflation-related increases in attorney fees. It's something to keep in mind if you're planning on hiring a bankruptcy attorney.
Would My Bankruptcy Cost Be Higher Phoenix Than Mesa?
So, if you’re living in Arizona, contemplating whether you should hire a local attorney or head to the big city of Tucson to save some money on bankruptcy costs.
Now, here's the deal. Phoenix, being the most populous city in Arizona with a whopping 1,660,272 people, might make you think that bankruptcy attorney fees would be sky-high over there. That makes sense, right? Well, not necessarily.
You see, while the cost of hiring a bankruptcy attorney may indeed be higher in Phoenix, there's a silver lining. With more attorneys in the mix, the competition heats up, and prices start to drop like hot potatoes. So, believe it or not, you might find that the total cost of filing bankruptcy, including attorney fees, could be lower in Phoenix.
Most bankruptcy attorneys offer something called a "free bankruptcy consultation.", which means you can get multiple perspectives without spending a dime. And don't forget about our bankruptcy cost calculator down below. It takes all these variables into account and gives you an estimate of the all-in cost.
Why Do Some Attorneys Charge Higher Chapter 7 Bankruptcy Fees?
Bankruptcy attorney costs can vary quite a bit.
Let's start with Chapter 13 bankruptcy attorneys. These folks usually charge a fixed fee, known as the "no-look fee," in Mesa. It's like a standard rate for the services they provide. So, you won't have to worry too much about price differences between Chapter 13 attorneys in that area. However, when it comes to Chapter 7 bankruptcy attorneys, it's a whole different ball game.
The cost of a Chapter 7 bankruptcy attorney can vary greatly. And that's where things get interesting. You see, the extra cost doesn't always mean you're getting better service or a more experienced attorney. It's important to understand what you're paying for, my friend.
Now, let's break down what factors can influence the cost of a bankruptcy lawyer:
- The type of bankruptcy you're filing. Are you going for Chapter 7 or Chapter 13?
- The complexity of your case. Is it a no-asset or asset case?
- Your location. Are you in Phoenix or Tucson?
- The level of connection you have with the attorney.
- The attorney's expertise. How many years of experience do they have?
Let's say you're earning $10,000 above the median income for Arizona, but you still want to file for Chapter 7 bankruptcy. Well, in that case, the attorney might need to spend extra time reviewing your expenses to determine if you qualify for Chapter 7 despite your income. And as you can imagine, more attorney time means a higher overall cost for you.
If you're interested in learning more about bankruptcy lawyer fees, I've got just the thing for you. Check out this article: "Understanding Bankruptcy Lawyer Fees."
Conclusion
Now, I hope this article has been enlightening and given you a clearer picture of what it'll cost you to file bankruptcy with a lawyer in Arizona. If you've got any burning questions, don't hesitate to reach out. And hey, if you want to get a quick estimate of the costs, check out the nifty Arizona bankruptcy cost calculator below.