How Much Does It Cost to File for Bankruptcy?
It can easily cost you a few hundred up to a thousand dollars to file for bankruptcy. This depends on the specific type of bankruptcy you want to file and if you go DIY or you will hire a lawyer to help you out.
The fees for filing and the rest of the miscellaneous costs necessary for filing a bankruptcy petition often ranges from $300 to $400. You might not pay more than this if you will file on your own.
Working with your bankruptcy attorney can significantly add to these figures. Their fees can widely vary depending on the specific type of bankruptcy that you will be filing for, the rate in the market where the lawyer practices, and how complex your financial situation is.
It might seem hard to come up with extra cash if you already struggle to pay for the basic expenses with your creditors pressuring you. Fortunately, there is available assistance if you think that the only choice left for you is bankruptcy.
Fees and Other Cost to File for Bankruptcy:
Bankruptcy court fees mainly depend on the specific type of bankruptcy.
You will be responsible for both Chapter 13 and Chapter 7 bankruptcy to pay for fees for your case to be heard in the bankruptcy court. These may include the following:
- Filing Fee
The filing fee for Chapter 13 can cost you $310 while it can cost you $335 to file for Chapter 7.
- Credit Counseling Fee
You are required to get credit counseling first if you are planning to file for bankruptcy. Most agencies offer this service at a nominal fee that can cost about $500. You can waive the fee if you cannot afford paying for it.
- Additional Fees
You should take a debt education course once you filed for bankruptcy for you to get a discharge. This can cost $50 up to $100. If you cannot afford this fee, you can request the provider to reduce the fee or better yet, waive it completely.
Fees for Bankruptcy Attorneys:
If you will be working with an attorney, it is likely that the legal service fees will make up the biggest part of your bankruptcy filing costs. However, you can be sure that it will all be worth it.
Laws on bankruptcy are quite complex and you might unnecessarily lose your property or income if you are not familiar with them. Sound advice from legal experts can keep your protected and increase your chances of getting favorable results.
The job of bankruptcy lawyers is to simplify the process of bankruptcy for their clients as much as possible. They are there to foresee any preventable issues. There are times when it can be more expensive and time-consuming for lawyers to fix the problem after the clients filed on their own than preventing them from the get-go.
Filing for bankruptcy is never easy and the process itself also comes with a price. Always weigh your options so you can pick the best route for you.
