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Filing Fees for Declaring Small Business Bankruptcy

A small business will have to deal with more than just paying off debts that it has to deal with in small business bankruptcy. It will also have to deal with paying off fees that are required after filing for bankruptcy. These values can be worth hundreds of dollars in many cases.

The most expensive filing fees are for Chapter 11 business bankruptcy filings. This comes from how with this option the business will still be able to cover its debts while continuing to operate. Because of the high risk that may be involved with this type of option the filing fees that are going to be used will be higher for a small business that uses this option.

When filing Chapter 11 bankruptcy for business a typical small business will have to pay at least a thousand dollars in filing fees. Although this fee can be high it can be paid off in installments in some cases. This varies according to the state that the bankruptcy is filed in.

Because a Chapter 7 business bankruptcy declaration will end up causing a business to close down without the chance of paying off all debts the filing fees for this option can be lower. A typical state will charge about one hundred to four hundred dollars in filing fees for Chapter 7 small business bankruptcy.

Attorney fees can be added to these filing fees as well. Depending on the attorney a business uses these fees can range from less than a thousand dollars to more than five thousand dollars.

No matter what option is used for filing for bankruptcy each state will have its own rules with regards to installments. These include how many installments one of these fees can be paid off it. For instance, in Virginia filing fees can be paid off in three or fewer installments. Initial installments can vary in value too. In Virginia an initial payment of $430 is required for Chapter 11 bankruptcy while a hundred dollars is needed for Chapter 7 bankruptcy.

Filing fees are important costs that can add to the money that a small business will have to spend during the small business bankruptcy process. These costs can be worth hundreds of dollars. Attorney fees can work in conjunction with these fees as well and they can add more to these costs. Be sure to also watch how different charge amounts and payment options can work in different states.