If your business is struggling, filing for bankruptcy may be a good way to help you recover from overwhelming debt. And for many business owners, Chapter 11 bankruptcy is an effective option. But filing for bankruptcy isn’t free. You’ll have to pay a few fees to initiate and complete the process. Here’s what your Wisconsin bankruptcy lawyers want you to understand about the fees you’ll pay when you file.
What Fees Will You Have to Pay?
The exact fees you’ll pay when filing for Chapter 11 bankruptcy will depend on your situation, but there are some common fees that every business owner will have to pay. These include the following:
- Filing fee: The filing fee for Chapter 11 bankruptcy in Wisconsin comes to $1,738. This fee is non-negotiable and is required to initiate the process.
- Attorney fees: When you work with an attorney during your bankruptcy, you’ll need to pay for their services. The exact fees will vary from firm to firm, so take your time and research the fees charged by each attorney you’re interested in working with.
- Trustee fees: Trustees manage the bankruptcy and distribution of assets or funds to creditors. You’ll have to pay for their services as well. The amount they’re paid depends on the value of the assets used to help settle debt.
- Administration fees: You may also have to pay additional administrative costs to the court. These fees will vary depending on the types of services you’re requesting of the court and the different requirements for your case.
Can You Reduce the Cost of Filing Chapter 11 Bankruptcy?
Unfortunately, many of the fees that business owners have to pay when filing for Chapter 11 bankruptcy in Wisconsin are set by the state. There’s no way to negotiate a lower fee or request a waiver from the court to reduce your costs.
But you may be able to reduce your costs by shopping around for different attorneys and comparing the fees they charge for their services. Many offer very affordable rates. But keep in mind that choosing a Wisconsin bankruptcy lawyer based on price alone isn’t always the best idea.
If you work with someone purely because of the fees they charge, you may not get the representation you deserve. More experienced attorneys often charge higher rates, but that experience can help streamline your bankruptcy and help you get through the process faster. Even better, experienced attorneys have represented businesses like yours in the past so you’ll know that you’re getting advice that’s proven.
Is Chapter 11 Bankruptcy Right for You?
Making the decision to file for Chapter 11 bankruptcy is not one you should take lightly, but it may be a good fit for business owners who want to keep their doors open while they repay what they owe. If you’re looking for a completely blank slate without having to make payments to creditors, Chapter 7 bankruptcy may be a better option.
The best way to tell if Chapter 11 bankruptcy is right for your organization is to speak with your Wisconsin bankruptcy lawyer. They’ll be able to review your situation and help you decide on the best course of action.
Schedule a Consultation Today
Filing for Chapter 11 bankruptcy can help you manage your company’s debt in a way that works for your budget. If you’re interested in filing Chapter 7, Chapter 11, or Chapter 13 bankruptcy, make sure you’re working with an experienced attorney. Contact the team at Kerkman & Dunn to schedule a free consultation.