How Much Bankruptcy Costs in Colorado

• Expect Colorado bankruptcy lawyers to charge $1,800 to $2,900 for Chapter 7, on average.

• Bankruptcy filing fees are $338 for Chapter 7, $313 for Chapter 13, and $1,738 for Chapter 11. 

• The required financial management and credit counseling courses cost well below the $50 fee that the U.S. Trustee Program presumes reasonable.

• Robinson & Henry accepts a reasonable down payment at signing, so you have counsel on the record immediately. 

The total cost for bankruptcy in Colorado largely depends on which chapter you file and how complex your case is. Chapter 7, for instance, is considered the least complicated of the “big three” bankruptcy chapters — 7, 13, and 11 — so it’s usually the least expensive. Let’s take a look at Chapter 7 versus Chapter 13 costs:

How Chapter 7 Bankruptcy Attorneys' Fees Work 

It’s pretty standard for bankruptcy attorneys to charge a flat fee for Chapter 7 cases. That’s how we handle them at Robinson & Henry. And, like most Chapter 7 bankruptcy attorneys, we require you to pay this fee in full before we file your petition. The reason for this protocol is that once a Chapter 7 case is filed, debts incurred before filing are usually discharged, and your attorney's fees would be considered debts. 

How Chapter 13 Bankruptcy Costs are Calculated

Like Chapter 7, we charge a flat rate for Chapter 13 cases. This fee covers all services throughout the case, which lasts 36 to 60 months. Chapter 13 cases require more legal work and oversight and are therefore more expensive than a Chapter 7 filing. Unlike Chapter 7 cases, where the attorney's fee is paid before the case is filed in bankruptcy court, a court-appointed trustee overseeing the Chapter 13 case pays the attorney after the client’s payment plan is confirmed.

Local bankruptcy rules structure what attorneys can charge for Chapter 13 cases. Attorneys may file a Supplemental Fee Application if the case requires extraordinary costs or post-confirmation work. 

Chapter 11 Bankruptcy Attorney Fees

Chapter 11 bankruptcies are notoriously complex. They require extensive court oversight, lengthy negotiations with creditors, and many hours to create an acceptable reorganization plan. For these reasons, many bankruptcy attorneys require a hefty retainer and charge an hourly rate to take the case.

Regardless of the billing method, all fees charged by Colorado bankruptcy attorneys must be reasonable. 

Chapter	Retainer Range	Median Fee*	Court Filing Fee
7	$300-$500	$2,750	$338
13	$300-$500	$8,500	$313
11	$20,000 - $50,000	hourly rates	$1,738

*The Median Fee

You should be aware that the median fee listed in our cost breakdown is not necessarily what you will pay. Some people pay more or less than the median cost, and that price depends on how complex your case is. 

Most of our bankruptcy clients pay a retainer between $300 and $500. This down payment (retainer) kicks off your legal representation. Here’s what formal legal representation means for you immediately: 

• Shield against harassment - Bill collectors must call our office instead of you. 

• Stall active lawsuits - We can file a formal response or a motion to slow the lawsuit down, buying time.

• File a “skeletal” bankruptcy - In emergencies, we can file core bankruptcy documents to activate an automatic stay.

• Attorney-client privilege - We can begin building a filing strategy based on absolute truth.

As I noted above, Chapters 13 and 11 are more complicated than Chapter 7. While a Chapter 7 case can wrap up in a matter of months, Chapters 13 and 11 take years to complete—if everything goes as planned. Here are some reasons bankruptcy can become more complex, possibly leading to an increase in attorney fees:

Chapter 7 

• Adversary proceedings - Bankruptcy trustees and creditors can file a lawsuit if they believe you committed fraud before you filed, such as intentionally running up credit card bills or hiding assets. These proceedings can result in your case being dismissed. 

• Trustee investigations - A bankruptcy trustee suspicious of fraud could require you and others, under Rule 2004 of the Federal Rule of Bankruptcy Procedure, to testify under oath about your finances and property.

Chapter 13

• Emergency filings - A last-minute filing triggers an automatic stay to protect debtors from pending enforcement actions, such as a foreclosure auction.

• Post-confirmation modifications - Major financial shifts, like job loss, that disrupt a repayment plan require a formal modification of the bankruptcy terms.

Chapter 11

• Creditor objections - If a primary creditor objects to your reorganization plan, your attorney will have to renegotiate the terms, redraft the proposal, and submit the amended versions until a viable plan is confirmed. 

• Defending “clawback” attempts - A debtor’s or trustee’s efforts to recover recent payments to vendors are often met by aggressive creditor opposition, sometimes with counterclaims of fraud. 

Ultimately, any complication that demands additional work from your attorney—court filings, negotiations, or trustee appearances—will drive up your legal expenses.

Compare Attorney Fees to the Cost of Waiting

If you’re weighing the cost of hiring an attorney against filing bankruptcy on your own or doing nothing at all, consider what delaying your filing will bring over the next year: 

• The Cost of waiting - You face compounding interest and late penalties, possible wage garnishments, creditor lawsuits, and commencement of the foreclosure process.

• The Cost of filing - As soon as you file, you activate the automatic stay that stops collections, foreclosures, and lawsuits immediately.

Hiring a bankruptcy attorney costs a fraction of the price you pay by delaying your filing, do-it-yourself bankruptcy mistakes, or doing nothing at all. 

In addition to attorney fees, if you choose to hire one, you’ll have to pay bankruptcy filing fees. Colorado bankruptcy cases, regardless of chapter, are filed with the U.S. Bankruptcy Court for the District of Colorado. And the federal judiciary sets the court filing fees: 

• Chapter 7 court fees - $338

• Chapter 13 court fees - $313

• Chapter 11 court fees - $1,738 

Under D. Colo. L.B.R. 1006-1, an individual debtor may apply to pay their filing fee in up to four installments. Chapter 7 filers with household income under 150 percent of the federal poverty line can ask the court to waive the fee.

Firms that handle a high volume of bankruptcy filings may try to win your business by advertising what, on its face, looks like a steal. Bankruptcy attorneys promoting suspiciously low fees may: 

• Use a one-size-fits-all approach that costs you assets or results in a dismissed case.

• Rely on non-attorney staff to handle the heavy legal lifting until a court appearance.

• Tack on fees for standard motions or court filings.

Look, a lower fee doesn’t automatically mean an attorney is unqualified, unethical, or inexperienced. Likewise, paying the highest rates doesn’t guarantee the best representation. It’s important to choose a bankruptcy attorney based on their experience and level of service.

Cost should not be the reason you keep living under collection pressure. Schedule some time to speak with a member of our bankruptcy team to learn more about our services and costs. Every bankruptcy is different, but Robinson & Henry’s Front Range Bankruptcy Team can:

• Determine your best path - Pinpointing which bankruptcy chapter fits your financial situation

• Stop creditor action - Instantly shield you from wage garnishments, lawsuits, and property seizures

• Provide clear, affordable options - Help you file without delay, even if you thought you couldn’t afford a quality bankruptcy attorney

With offices in Broomfield, Colorado Springs, and the Denver metro area, including Highlands Ranch, our experienced bankruptcy attorneys protect individuals, couples, and businesses. Call 303-688-0944 or book your consultation online 24/7.