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What does it cost to file Bankruptcy in Omaha, NE?

For the average person or couple filing a Chapter 7, the average cost to file bankruptcy in Omaha, Nebraska is LESS than $1,500.  On the lower end, the total cost may only be around $1,100 while a moderately more involved case might be closer to $1,500 or perhaps a bit more.  These amounts only apply to relatively simple consumer cases.

It is important to know the breakdown of the total cost to file bankruptcy in Omaha because different lawyers include different services and fees in their quotes.  Armed with the knowledge of what is involved allows a person to compare apples to apples.  Here is an example of the cost to file bankruptcy in Omaha for a simple and uncomplicated case:

Background:  Jane Doe lives in Omaha, Nebraska and is recently divorced.  She has two kids, ages 3 and 7.  Jane works full time as a dental assistant and earns a salary of $35,00 per year.  She also is supposed to receive child support in the amount of $650 per month but her ex-husband is self employed and is very spotty at paying her because of a struggling business.  In the divorce decree, John Doe, her ex-husband, was ordered to pay the joint credit card debts that total $20,000.  However, because John’s business is not making a profit, he has been unable to pay these creditors.  Now, since Jane is also on the credit cards, she is getting sued and garnished.  Jane just received a garnishment on her wages.  The creditor will be taking 25% of her takehome pay next week!

Jane sets an appointment to have a free bankruptcy consultation with one of the Omaha bankruptcy lawyers at John T. Turco & Associates, P.C., L.L.O.   At the appointment, Jane lets the attorney know about the background information.  The attorney asks a lot of other questions too:

1.  Are you being sued by any other creditors other than the one we know about?

2.  Do you own a house?

3.  Do you have a car loan?

4.  Do you have any tax problems?

5.  What about assets?  What do you own?

The bankruptcy attorney determines that Jane’s case is really pretty basic other than a few little things.  Obviously, the wage garnishment will need to be immediately stopped once the bankruptcy is filed.  Another big advantage that Jane has going for her in terms of getting an affordable bankruptcy quote is that she is very organized.  She has all of her paystubs going back six months, her bills are all in one folder and she also has her tax returns for the last two years with her.  Jane is prepared and knows who she owes.

Based on all of this information, the bankruptcy attorney quotes Jane $1,330 for EVERYTHING.  What is “everything?”  Here is a breakdown for illustration purposes only:

1.  Bankruptcy Court filing fee (required by federal law):             $335.00

2.  Pre-bankruptcy Credit Counseling Course (required by federal law):       $15.00 (average price)

3.  Post-bankruptcy Financial Management Course (required by federal law):  $15.00  (average price)

4.  Credit report (not legally required but it is crazy not to get one)  $35.00 (this is the actual cost….no price markup)

4.  Bankruptcy attorney fees:  $900.00

TOTAL COST TO FILE BANKRUPTCY IN OMAHA, NE :  $1,330

As is shown above in this hypothetical example,  the attorney fees involved in filing a bankruptcy in Omaha, Nebraska is only $955.  But, the actual cost to file bankruptcy in Omaha, Nebraska is $1,330.  That is a difference of $368 and each Omaha bankruptcy law firm does it differently.  Some bankruptcy lawyers do NOT include the two courses required by federal law.  Other attorneys may not require nor pay for a credit report.  Moreover, some bankruptcy attorneys may only quote you for the attorney fees alone and all the costs are on you.  So, the ultimate answer to the question “What does it cost to file Bankruptcy in Omaha, NE” is only truly known by adding up all of the required components required by law and common sense.

Of course, we have only been talking about what it costs to file bankruptcy in Omaha and have not addressed many of the more important and critical issues about the quality of service that is absolutely necessary.  See the previous blog on finding A Cheap Bankruptcy Lawyer in Omaha, Nebraska for a more detailed discussion of what is all involved.

 

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