Clients often get confused over the filing fee for Chapter 7 Bankruptcy. How much is it? Is it in addition to the lawyers’ fees? Or is it included in the fee quote? Who gets the money and why do I have to pay it?
The Chapter 7 filing fee in Colorado was recently raised from $306 to $335. At Mile High Bankruptcy, this amount is always included in the cost of the case and is paid to the Bankruptcy Court by the firm upon filing of the case. As all fees with our firm are often made by a payment plan, this fee is blended into the plan and not necessarily all paid at once.
The money for the filing fee goes to the court to help pay for the administrative costs of running the bankruptcy court system, and to pay the Bankruptcy Trustees for their work in processing your case. It is, in my opinion, a fair payment for their work for a system that generally works quite well by professionals who take their jobs seriously and are committed to making the system work.