So how much does it cost to declare bankruptcy, anyway?
Should you consider bankruptcy if you are overwhelmed with your current debt? Well, you should discuss this carefully with a good lawyer and try to decide what the best move would be for you and your family. One of the major concerns about filing bankruptcy is the cost, since anyone who has reached this point is already struggling financially. So exactly how much does it cost to file bankruptcy?
You have to pay the court a fee of $274 when filing chapter seven bankruptcy, while the fee for chapter 13 bankruptcy is $189. Chapter seven bankruptcy, by the way, is what most people are looking for since it aims to wipe out your debts completely. Chapter 13 bankruptcy, on the other hand, establishes a repayment plan for you to pay off your debts over time.
This may seem like a lot of money, but this really depends on your perspective. Think about what you’re getting in return, since a successful bankruptcy case can give you a fresh financial start.
In addition to the filing fees, you’ll also have to pay your lawyer fees. By now you may start thinking that this whole thing is more trouble than it’s worth, but hang in there.
Unfortunately, the recent bankruptcy reform law has made the need for legal help more obvious, and attorneys may even charge a little higher these days.
However, you shouldn’t think that bankruptcy is not an option because of the cost involved. After all, the process is designed to bring you relief even if it could have long-term consequences for your credit. The main question to ask yourself is whether bankruptcy is the way to go, and you shouldn’t try to answer this question without a good amount of research and legal advice.
When you first declare bankruptcy, the court will temporarily stop all collections from taking place. Until your case is settled, bill collectors are not allowed to contact you.
If you were successful in wiping out your debts, you won’t have to worry about these anymore. Getting rid of these other debts should clear up enough funds for you to pay your lawyer fees (especially if you work out a payment plan with your attorney).
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