Example of fee credit

Example of fee and trust account credit when falling back to bankruptcy:

We had a client called SB [name changed to protect privacy]. She signed up for debt settlement but due to the worsening economy she lost her job and her financial situation became worse.

OVLG attorney Chris Hewitt provided her an easy way to file for chapter 7 bankruptcy.

Fee credit explained using different scenarios

If she has already paid in fees: (which includes all sources such as the initial per creditor fee of $100 as well as the monthly $50 maintenance fee)

Scenario 1: $600

She would need to pay $1000 for the bankruptcy fees.

Scenario 2: $500

She would need to pay $1000 for the bankruptcy fees.

Scenario 3: $400

She would need to pay $1100 for the bankruptcy fees.

Scenario 4: $0

She would need to pay $1500 for the bankruptcy fees.

Trust account credit explained using different scenarios

You pay less in fees if you have sufficient balance accumulated in your trust account. Here's an example if SB has $800 sitting in her trust account

In case of Scenario 1

She would need to pay $100 for the bankruptcy fees.

In case of Scenario 2

She would need to pay $200 for the bankruptcy fees.

In case of Scenario 3

She would need to pay $300 for the bankruptcy fees.

In case of Scenario 4

She would need to pay $700 for the bankruptcy fees.