Costs and Fees in Chapter 11 Bankruptcy:
Chapter 11 bankruptcy is much more expensive than consumer bankruptcies filed under Chapter 7 and 13 as there are more procedures and reports built into the bankruptcy Code and bankruptcy Rules including first day motions, the bankruptcy reorganization plan, monthly reports, and disclosure statements. The work involved in a Chapter 11 bankruptcy involves numerous court hearings throughout the bankruptcy process and negotiations with the US Trustee’s office and creditors. The bankruptcy plan is much more precise than those prepared in consumer cases. Legal work related to a Chapter 11 not only requires more time, it requires substantial expertise and experience than the legal work involved in a consumer bankruptcy proceeding. Most debtors understand that Chapter 11 bankruptcy procedures are set up to accommodate the largest corporations and businesses in our country and that the same steps, procedures, and requirements apply to small businesses.
The bankruptcy filing fee for Chapter 11 is $1,046 compared to $306 for Chapter 7 and $281 for Chapter 13.