Filing for bankruptcy costs Chapter 7 bankruptcy in Alabama and $313 for a Chapter 13, according to the US bankruptcy court fee schedule.
However, are you planning to hire an attorney or apply for a free waiver?
As of 2024, Chapter 7 attorney fees in Alabama typically range in between $900 and $1,538. To get more precise estimate based on your location, use the free bankruptcy cost calculator below. We gathered this data by investing around $1,000 on PACER, a public records database with detailed information on bankruptcy attorney fees.
If you are like me, you’re probably wonder to afford the cost of bankruptcy in Alabama when it’s difficult to pay bills, especially starting in 2024 as interest rates and inflation are still an issue. Thankfully, most bankruptcy attorneys near you provide initial free consultations and take payment plans to help you afford your bankruptcy.
While filing fees and credit counseling course costs are fairly standard, attorney fees can vary significantly, whether you’re in Huntsville or Birmingham. This article aims to give you a clear estimate of all bankruptcy-related costs:
- Bankruptcy Attorney Fees
- Bankruptcy Filing Costs
Estimate the All-In Bankruptcy Cost in Your Zip Code
1. Bankruptcy Attorney Fees Alabama
A Chapter 7 Bankruptcy is often less expensive than Chapter 13 bankruptcy. That said, you often have to qualify for a Chapter 7 bankruptcy based on the Alabama bankruptcy means test. As stated above, Chapter 7 bankruptcy attorneys in Alabama can cost between $800 – $1538. The cost may increase or decrease based on the following factors:
The bankruptcy lawyer cost is often based on the following attributes:
- Which type of chapter you are filing (i.e. Chapter 7 vs Chapter 13)
- The complexity of your case (i.e. no asset vs asset)
- Your location (i.e. Huntsville vs Birmingham
- Level of attorney connection
- Attorney expertise (i.e. how many years of experience)
Here are some of the ranges of cost in major cities in Alabama.
Attorney Fees in Huntsville
Huntsville is the most populated city in Alabama with a population of 215,006. Bankruptcy attorneys in Huntsville can cost an estimated $1,500.
Attorney Fees in Birmingham
Bankruptcy attorneys in Birmingham can cost an estimated $1,500.
Attorney Fees in Montgomery
Bankruptcy attorneys in Montgomery can cost an estimated $1,400.
2. Chapter 13 Bankruptcy Attorney Fees Alabama
Chapter 13 bankruptcy attorneys fees in Alabama can cost $3500 – $4500. The fee can depend on the district.
While Chapter 7 attorney fees have variability, many Chapter 13 fees are relatively similar based on no-look fees, a reasonable cost for the service provided. You may still want to see whether the attorney charges an hourly rate for any additional work after filing the Chapter 13
3. Bankruptcy Filing Costs
Bankruptcy filing costs are pretty similar across the United States, not just Alabama. Here are the other costs to consider.
Bankruptcy Filing Fees
The US Courthouse has a fee schedule and a bankruptcy form that provides the filing fee.
The Chapter 7 bankruptcy filing fee is $338 ($245 filing fee $78 administrative fee + $15 trustee surcharge).
The Chapter 13 bankruptcy filing fee is $313 ($235 filing fee + $78 administrative fee).
Alabama Filing Fee Waiver Guidelines
| # of People | 150% Poverty Guideline |
|---|---|
| 1 | $15,060 |
| 2 | $20,440 |
| 3 | $25,820 |
| 4 | $31,200 |
| 5 | $36,580 |
| 6 | $41,960 |
| 7 | $47,340 |
| 8 | $52,720 |
| 9 | $58,100 |
| * Add $5,380 for each individual in excess of 9. | |
Mandatory Course Costs
When you file bankruptcy, you have to take an approved credit counseling course in Alabama and a debtor education course. You can often take both courses online. The average cost may is around $10 to $50 per course. Please note that the courses must be approved, so here is the list of approved Alabama credit counseling courses and Alabama debtor education courses that should also have the cost associated with the course.
Miscellaneous Costs
You may have to pay for transportation to the meeting of creditors at the courthouse, but most 341 meetings of creditors are still online even after COVID. You may also have to pay for a credit report for your attorney (although they may be able to help you with the credit report).
You can estimate the cost of transportation to one of the bankruptcy courts below:
Northern District
- U.S. Post Office and Courthouse
400 Well Street
Decatur, Alabama 35601
Middle District of Alabama
Southern District of Alabama
- US Bankruptcy Court
One Church Street
Montgomery, AL 36104 - George W. Andrews Federal Building
701 Avenue A
Opelika, AL 36801
Will Inflation Affect the Cost To File Bankruptcy in Alabama?
With subsiding inflation in 2024, a question I’ve heard is whether inflation will slow to the extent that attorney fees may not rise. Let’s cover whether inflation may affect the filing fee and the attorney costs in Alabama.
The Chapter 7 bankruptcy filing fee was updated from $335 to $338, and the Chapter 13 bankruptcy filing fee was updated from $310 to $313 effective December 1st, 2020. Based on the very slight change, I would not expect the filing fee to negatively impact you.
You may see some inflation in attorney fee costs as inflation may force bankruptcy attorneys to pay more to employees and face higher costs of living themselves in cities such as Birmingham or Montgomery or across Alabama.
Would My Bankruptcy Cost Be Higher Huntsville Than Montgomery?
You may live in a suburb in Alabama and wonder if you should hire a local attorney or an account in a bigger city like Birmingham to save on bankruptcy costs.
As Huntsville has the highest population in Alabama of 215,006, you may expect that the cost of bankruptcy attorney fees may be higher in Huntsville than Montgomery.
While the cost may be higher in Huntsville, there also may be more bankruptcy attorneys increasing competition and dropping prices. So, you actually could find that the total cost to file bankruptcy including bankruptcy fees could be actually much higher in your city than in Huntsville.
One thing to be aware of is that most bankruptcy attorneys offer free bankruptcy consultations, so you can get multiple perspectives. Also, our bankruptcy cost calculator below takes into consideration those variables when providing you with an all-in cost estimate.
Why Do Some Attorneys Charge Higher Chapter 7 Bankruptcy Fees?
You may compare prices from two different bankruptcy attorneys in Birmingham, and find attorney costs vary between two attorneys.
The Chapter 13 bankruptcy attorneys often charge the same amount regardless in Montgomery due to the no-look fee (a normal fee for the services provided). That said, the Chapter 7 bankruptcy attorney fee can vary greatly, so it’s important to understand what you are getting for the additional cost.
For example, let’s say you make $10,000 above the median income for Alabama and still want to file a Chapter 7 bankruptcy. The attorney may then have to spend additional time looking over your expenses to see whether you would qualify for a Chapter 7 even though you are above the median. Additional attorney time generally means a higher overall bankruptcy cost.
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