Cost to declare bankruptcy
So how much does it cost to declare bankruptcy, anyway?
You may be considering bankruptcy as a way to solve your debt problems. This is certainly an option that you should consider if you’re facing an overwhelming amount of debt and don’t see any other way out. Of course, you should speak to a lawyer and not rush into things prematurely. However, if you decide to go this route, you may be wondering how much does it cost to declare 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.
At first glance, this doesn’t seem like a very large amount to pay in order to get a fresh start financially. Of course, if you’re looking to declare personal bankruptcy, then any expense is going to be significant for you. Still, the above fees are not outrageous considering what you’re getting in return, which is a second chance in your financial life.
It is important to point out, however, that the filing fees are not the only cost that you have to worry about when it comes to bankruptcy. You’ll also have to pay your lawyer.
It’s true that lawyer fees can be expensive, and the new bankruptcy law makes the need for a lawyer greater than ever.
Are you worried that you will not be able to pay for the fees associated with bankruptcy? The real question is whether you have talked things over carefully with your family and asked a good lawyer for advice. If you’re sure the bankruptcy is necessary, then don’t let the costs get in your way.
The good news is that once you file for bankruptcy, the bill collectors have to stop contacting you (at least until your case is over). This is the law.
Moreover, if your case is successful, then you know what that means. You don’t have to worry about your previous debts at all if your chapter seven bankruptcy case is successful. Even if you file chapter 13, you’ll still get some relief by using a payment plan. Either way, bankruptcy should make your financial burden lighter and make it easier to cover the cost of an attorney.