Legal Question in Bankruptcy in Massachusetts

Re: Obtaining fees for filing

The filing fee is $209 until October 17, when the fees will increase to $274 for chapter 7. It will be more difficult for some people to file c. 7.

Most attorneys' fees will also increase, and many lawyers are going to stop filing bankruptcies for clients because of the possible liability and increased burden on lawyers.

My fee for a c. 7 for now is $750. This will increase to $995 on October 17, 2005, although I am not guaranteeing I will be doing bankruptcies after that date.

My fee can be paid by a $375 retainer, filing fee of $209 paid when the documents are ready for filing, and the balance of my fee due before the 341 meeting, usually about a month after filing.

You can borrow against your retirement to pay the fee, although I usually do not recommend it. You have to repay it or suffer a penalty and pay the income tax due after the case is closed (roughly 6 months after filing). If you are looking to file a c. 13, you cannot repay the loan and must include the penalty and tax as a debt due the IRS.

There are do-it-yourself forms available at Staples, Borders Bookstores and online. You can download the forms for free at the bankruptcy court website, but without instructions. I offer a service to review drafts of the forms and suggest changes or corrections, but you must prepare and revise the forms and pay the filing fee directly. I do not represent you in that case. The fee is $350.