A Cost That You Will Have To Incur To File For Bankruptcy!

  • chapter 7

A Cost That You Will Have To Incur To File For Bankruptcy!

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As ironic as it may be, but filing for bankruptcy isn’t free, even though you are in huge debts and have no penny to even pay your bills, but still to get rid of your debts and get a fresh start you will need to pay for bankruptcy which includes – court fees, credit counseling fees, as well as attorney fees. The fees may vary on the chapter under which you will be filing for bankruptcy.

Commonly there are 2 chapters under which most people file for bankruptcy. Chapter 7 which can be filed by both businesses and individuals, helps to get rid of all your debts by liquidating the assets. Whereas, Chapter 13, which can only be filed by individuals, gives the filers the chance to catch up on their arrears by going for a repayment plan of 3-5 years.

Cost Incurred when filing for bankruptcy

When you file for bankruptcy, the basic fees set by the United States Court include –

  • Chapter 7 – $245
  • Chapter 13 – $235

Apart from this, there is an additional fee of $78 (administrative) and $15 (Trustee Fee). If you have been approached by anyone claiming the fees to be lesser than above, beware it’s a Total Scam.

It is important to note that the above is only the basic fees for filing fresh for bankruptcy. However, if you go for additional services like converting from one chapter to another, or reopening a case, these may be charged extra depending on your request.

In case you want to check in detail all the updated fees, you cal always log In to – USCourts.gov

Can you pay the fees in installments or get them waived off?

Yes, under certain circumstances, you can ask the court to allow you to pay the fees in installments. However, to qualify for a waiver of fees, you will have to have an income that is 150% below the poverty line.

Cost for the mandatory credit counseling

When you file for bankruptcy, it becomes mandatory for you to take a credit counseling session as approved by the court as well as a financial management course. These courses are not free but come with a small court cost of $50. You can however apply for a waiver, which will be determined based on your household income.

Alternatively, you can also check out the list of agencies as approved by the US Department of Justice Website. On this website, you will get all the approved agencies along with the fees that they charge.

Fees to be paid to the Attorney

The attorney fees may vary depending on the chapter of bankruptcy that you are filing for along with the type of your case and the attorney experience. For example, an attorney with a lot of expertise will definitely charge a lot more compared to a non-experienced attorney.

Also, the fees also vary drastically depending on the location (city) where you are filing for bankruptcy. An attorney in Idaho may charge you around $692, while in Arizon the charges may go up to $1530 for c chapter 7 case. Similarly, in North Dakota, the fees charged will be approx. $1560, while $4950 in Maine for a Chapter 13 case.

However, it is important that you select the attorney based on recommendations and expertise. If you are still looking to consult the best attorney in Los Angeles or dallas, book an appointment now – https://www.recoverylawgroup.com/bankruptcy/

 


    2023-03-30T13:19:22+00:00