The Cost of Filing for Bankruptcy in Oklahoma: What to Expect

The Cost of Filing for Bankruptcy in Oklahoma: What to Expect

Filing for bankruptcy can be a complex process, and understanding the costs involved is crucial for anyone considering this option in Oklahoma. The cost of filing for bankruptcy varies depending on the type of bankruptcy, legal fees, and additional expenses that may arise during the process. In this article, we will break down the costs associated with filing for bankruptcy in Oklahoma and what you can expect.

Types of Bankruptcy in Oklahoma

In Oklahoma, individuals typically file for either Chapter 7 or Chapter 13 bankruptcy. Each type comes with its own set of costs.

1. Chapter 7 Bankruptcy Costs

Chapter 7 bankruptcy is often referred to as "liquidation" bankruptcy. The process is usually quicker and less expensive than Chapter 13. As of October 2021, the filing fee for a Chapter 7 bankruptcy in Oklahoma is approximately $338. This fee is generally applicable nationwide, but you should check with the local bankruptcy court for any changes.

In addition to the filing fee, you may need to pay for credit counseling and debtor education courses, which typically cost between $50 to $150 each. You might also want to consider hiring a bankruptcy attorney, which can range from $800 to $2,500, depending on the complexity of your case and the attorney's experience.

2. Chapter 13 Bankruptcy Costs

Chapter 13 bankruptcy is a "reorganization" bankruptcy that allows individuals to create a repayment plan for their debts. The filing fee for Chapter 13 in Oklahoma is similar to Chapter 7, around $313. However, the costs do not end there.

Given that Chapter 13 involves a repayment plan, legal fees can be higher, typically ranging from $2,500 to $6,000 or more. The final cost often depends on the complexity of your financial situation and the length of your repayment plan, which can last up to five years. You will also need to pay for credit counseling and debtor education, similar to Chapter 7.

Additional Costs to Consider

Aside from attorney fees and filing costs, there are other potential expenses to keep in mind:

  • Credit Counseling and Education: As mentioned, these courses are mandatory and may cost between $50 to $150.
  • Court Costs: Beyond filing fees, potential additional court costs may arise, depending on the specific circumstances of your case.
  • Document Preparation Fees: If you opt for document preparation services rather than a full-service attorney, this could cost between $200 to $500.
  • Miscellaneous Costs: This can include costs for obtaining copies of documents, obtaining credit reports, or other related expenses.

Can You Get Help with Bankruptcy Costs?

Many individuals find the costs of filing for bankruptcy to be overwhelming. Fortunately, in Oklahoma, there are options available to help manage these expenses. Some attorneys may offer payment plans or sliding scale fees based on your income. Additionally, if you're facing significant financial hardship, it might be possible to request a waiver for the filing fee, depending on your eligibility.

Conclusion

Filing for bankruptcy in Oklahoma comes with several costs that vary based on the type of bankruptcy and the complexity of your case. It's essential to budget for these expenses and consult with a qualified bankruptcy attorney who can guide you through the process. Understanding what to expect will help you make informed decisions about your financial future.