How Much Does It Cost to File Bankruptcy in Iowa?
Worried about what it costs to file bankruptcy in Iowa? The court charges $338 for Chapter 7 and $313 for Chapter 13 for cases filed on or after December 1, 2023. Those totals don’t include the two required courses, which you pay to the course provider separately. We explain the court charges and what determines the course costs below.
Key Takeaways
- The court total includes the filing fee and administrative fee, plus a surcharge in some cases.
- Federal court filing fees are the same throughout Iowa and across states.
- You need credit counseling before filing and a separate financial management course after filing.
- Both courses must come from providers approved by the U.S. Trustee Program.
What Does the Court Charge?
Federal law sets the filing fees in 28 U.S.C. 1930(a)(1). The federal bankruptcy fee schedule adds the administrative fee and applicable surcharge. The surcharge goes toward paying the trustee, the official appointed to oversee the case.
- Chapter 7: a $245 filing fee, a $78 administrative fee and a $15 trustee surcharge. The total paid to the court is $338.
- Chapter 13: a $235 filing fee and a $78 administrative fee, with no trustee surcharge. The total paid to the court is $313.
The fee schedule took effect December 1, 2023, and these amounts apply to cases filed on or after that date. The U.S. Bankruptcy Court for the Northern District of Iowa lists the same totals. These federal fees are the same in every Iowa court and every state, whether you need bankruptcy help in Ames or bankruptcy help in Council Bluffs. Court fees change from time to time, and the current amount is on the court’s own website.
What Are the Two Required Courses?
You need two different courses at different points in your case. Both must come from providers approved by the U.S. Trustee Program, which publishes the approved list. We explain the timing below:
- Credit counseling happens before filing. Under 11 U.S.C. 109(h), you generally must complete it within the 180 days before your case is filed.
- A separate financial management course happens after filing. You must finish it before receiving a discharge, which ends your duty to pay eligible debts.
What Do the Required Courses Cost?
Federal rules under 28 CFR 58.21 and 28 CFR 58.34 treat a fee of $50 or less for each course as reasonable. Providers set the actual charge and need the U.S. Trustee’s approval before charging more.
How Does Bankruptcy Compare With Debt Consolidation?
A consolidation loan moves the same balances into one new loan, cancels no debt and requires full repayment with interest, while Chapter 7 bankruptcy and Chapter 13 bankruptcy can discharge eligible debt. Chapter 13 works through a repayment plan. In most cases, a large percentage of eligible debt is wiped out after successful completion of the plan.
Frequently Asked Questions
Are Court Filing Fees the Same Everywhere in Iowa?
Yes. Federal fees apply in every Iowa bankruptcy court, so your location within the state doesn’t change the court filing charge.
Does the Court Filing Total Include the Courses?
No. You pay the course provider separately for the required courses. The court total covers only the court charges.
Do I Need Two Separate Courses?
Yes. Credit counseling and financial management are different requirements. Completing the first course doesn’t replace the second, and both must come from approved providers.
When Do I Need to Complete Credit Counseling?
Before filing. You generally must complete it within the 180 days before your case is filed.
When Do I Take the Financial Management Course?
After filing. You must finish this separate course before you can receive a discharge.
Get Clear Answers in a Free Consultation
You do not need to know whether bankruptcy is right before you call. That is part of what the free consultation is for. We can help you understand your options. Request a free consultation or call 641-472-5141.
