Legal

Books and taxes for bankruptcy attorneys.

Chapter 7 fees that must clear before filing, Chapter 13 fees paid out by the trustee over years, credit counseling costs, and court filing fees. Gus sorts it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
MarchExample month
$8,800
what you made

March came in at $8,800. Four Chapter 13 trustee disbursements landed this month for cases filed last year, so I booked them separate from the Chapter 7 fees collected up front.

  • Chapter 7 fee, DelacruzChapter 7 flat fees
  • Trustee disbursement, Chapter 13Chapter 13 trustee pay
  • Court filing fee, DelacruzCourt filing fees
  • Credit counseling providerCredit counseling pass-through
  • Bankruptcy filing softwareCase management software
Money in$24,000
Money out$15,200
Set aside for taxes$1,900
An example month. Yours will have your numbers.

Why your books are different

Bankruptcy books go wrong in the same few places.

A generalist sees a fee and assumes it works like any other flat rate. Your business has one fee that must be fully collected before you can even file the case, and another that trickles in from a trustee over years, not weeks.

  1. 1

    A Chapter 7 fee has to clear before the filing

    Any balance still owed to the firm when a Chapter 7 case is filed can itself become a debt the bankruptcy discharges, so most firms collect the full fee before filing, and tracking that collection separately from the case itself matters.

    What we doTracks Chapter 7 fees as fully collected income once they clear, distinct from any other billing, so the timing that protects the firm's own fee stays visible.
  2. 2

    Chapter 13 fees drip in over years, not weeks

    A Chapter 13 fee is often approved by the court and paid out by the trustee in pieces over a three- to five-year repayment plan, so income from one case filed this year can still be trickling in long after the file looks closed.

    What we doBooks each trustee disbursement as it lands and ties it back to the original case, so a slow drip of old cases does not get confused with new business.
  3. 3

    Credit counseling fees are not the firm's money

    Clients pay for a required credit counseling course through an approved outside provider, and if that payment passes through the firm's account, it can look like income the firm never actually earned.

    What we doBooks credit counseling payments as a pass-through, not firm income, so the numbers reflect only what the practice actually earned.
  4. 4

    Court filing fees get mixed into the firm's own fee

    The court filing fee is a fixed government cost separate from what the attorney charges for the work, and blended together, it is hard to see what the firm's fee actually is from one case to the next.

    What we doKeeps court filing fees in their own line, separate from the attorney's fee, so pricing stays clear across cases.
  5. 5

    High case volume hides which cases are actually profitable

    A practice built on filing many cases at a modest fee each can look busy and healthy on total volume, while a handful of complex cases quietly eat far more staff time than the fee for that case type ever covered.

    What we doKeeps Chapter 7 and Chapter 13 income in separate lines, so you can see which type of filing is actually carrying the practice.

Your categories

The categories Gus keeps for a bankruptcy practice.

Set up once for how each chapter gets paid and what passes through to others. You never pick a category. He does, and an accountant checks it.

Money in

  • Chapter 7 flat feesFees collected in full before a Chapter 7 case is filed.
  • Chapter 13 trustee payFee payments disbursed by the trustee over the life of a repayment plan.
  • Consultation feesPaid initial case evaluations, when charged separately.
  • Post-filing legal workAdditional billed work on a case after it has already been filed.

Money out

  • Court filing feesThe fixed government fee to file a bankruptcy case, separate from the attorney's own fee.
  • Credit counseling pass-throughPayments to an approved outside provider for the required counseling course.
  • Case management softwareBankruptcy-specific filing and case tracking software.
  • Staff and paralegal wagesThe people who prepare schedules and manage filings.
  • Legal research subscriptionsBankruptcy-specific research services and general legal databases.
  • Malpractice insuranceAnnual or quarterly professional liability premiums.

What we watch for you

  • Chapter mix

    How much of the month is Chapter 7 fees collected up front versus Chapter 13 fees trickling in from the trustee.

  • Trustee payment lag

    How far behind trustee disbursements run compared to when a Chapter 13 case was actually filed.

  • Case volume trend

    Whether filing volume is growing or shrinking, since this practice runs on steady case flow more than any single big matter.

  • The set-aside

    What the firm will owe, tracked every month, so tax season is a number you already know.

Ask Gus

Things bankruptcy attorneys ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

Four trustee payments landed this month for cases I filed last year. Does that count as new income?

It counts as income when it lands, but I tie it back to the original Chapter 13 case, so it shows up as the tail of last year's work, not a brand new win.

A client paid for their credit counseling course through our office account. Is that our revenue?

No, that is a pass-through to the counseling provider. I keep it out of the firm's own income so the numbers reflect what the practice actually earned.

Do I owe our contract paralegal a 1099 this year?

If you paid them $2,000 or more this year and they are not on your payroll, that is a 1099-NEC due January 31, and I have been tracking it since the first case they touched.

The tax side

The tax side of a bankruptcy practice.

Most of what goes wrong here is timing between when a case is filed and when the fee for it actually gets collected, sometimes years apart on a Chapter 13.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Chapter 13 income counts as trustee payments landA fee approved as part of a repayment plan becomes income as each disbursement is actually received from the trustee, which can stretch a single case's income across several tax years.
  • High filing volume can still hit the deduction ceilingMost owners can deduct up to 20 percent of business profit, but law counts as a specified service trade, so a busy filing year can push taxable income above $201,750 single or $403,500 joint, where the deduction begins to shrink.
  • 1099s follow the filing volumeAny contract paralegal or document preparer helping process cases who is paid $2,000 or more in 2026 and is not on payroll gets a 1099-NEC by January 31.
  • Quarterly estimated taxes on volume-based incomeAn owner without steady payroll withholding typically owes estimated payments on April 15, June 15, September 15, and January 15, and a shift in filing volume changes that number quarter to quarter.

Deductions bankruptcy attorneys miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Bar dues and CLE
  • Malpractice insurance
  • Bankruptcy filing software
  • Legal research subscriptions
  • Case management software
  • Mileage to court and creditor meetings
  • E-filing and PACER fees
  • Payment processing fees
  • Office rent and utilities
  • Marketing and lead generation
  • Answering or intake service fees
  • Printing and mailing for schedules and notices

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A bankruptcy year, kept every month.

Filings move on court and trustee timelines, not the calendar. Gus keeps the set-aside steady across both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the 1099 list for contract staff is ready, and a monthly set-aside is planned around a mix of Chapter 7 and Chapter 13 income.

  2. April

    Filed, trustee payments and all

    Your return is filed and signed, counting both fees collected up front and trustee disbursements that landed this year. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where the firm stands, how Chapter 13 trustee payments are trending, and whether the set-aside still fits.

  4. October

    Before year end

    A look at any software or equipment worth buying before December, and a check on filing volume for the year.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for bankruptcy attorneys. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions bankruptcy attorneys ask first.

Why does Gus treat Chapter 7 and Chapter 13 fees differently?

Because they are collected differently. A Chapter 7 fee is usually paid in full before filing, while a Chapter 13 fee is often paid out by the trustee over years. Keeping them apart shows which is actually driving the month.

A Chapter 13 case I filed two years ago still sends in trustee payments. Does that mess up my books?

No. Gus ties each disbursement back to the original case, so it shows up as the tail end of older work rather than getting confused with new cases you filed this month.

Clients pay their credit counseling fee through our account. Is that our income?

No, that money passes straight through to the counseling provider. Gus keeps it separate from the firm's own fees so your income reflects only what the practice actually earned.

My case volume is high but the per-case fee is modest. Can Gus still track profitability?

Yes. Keeping Chapter 7 and Chapter 13 income separate, along with staff cost, shows which type of filing is actually carrying the practice rather than just a busy-looking total.

Does a slow filing month change my quarterly estimated taxes?

It can. Gus tracks the set-aside against what actually lands each month, so a slower stretch does not lock in a set-aside built for a busier one.

Can Gus show me whether Chapter 7 or Chapter 13 work is actually carrying the practice?

Yes. The two chapters stay in separate income lines, so over time you can see which type of filing is actually driving the firm's revenue, not just its case count.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever