Looking at Bankruptcy Expenses
How much does bankruptcy cost?
If you are considering bankruptcy as an option, it is entirely valid to wonder about the costs of this process when your finances are already strained to the breaking point. While it does cost some money to file, the benefits of bankruptcy far outweigh these costs. Several factors influence how much your bankruptcy will actually cost. The type of bankruptcy you are filing for, as well as the amount of debt you possess factor largely into the total cost of this process. If you would like to know more about bankruptcy and how much filing for bankruptcy will cost, you should not hesitate to speak to a knowledgeable lawyer.
In reality, no two bankruptcies are exactly alike. Whether you are filing for Chapter 7 or
Chapter 13 bankruptcy has a strong bearing on the final cost. U.S. bankruptcy courts have filing fees for those who decide to initiate bankruptcy proceedings. Initial filing costs for declaring Chapter 7 are usually $335. Chapter 13 bankruptcy costs $274 to file initially. In a Chapter 7 case, you will have most or all of your debt cancelled by a bankruptcy court, and may see the liquidation of some of your assets in order to aid in the repaying of creditors. The benefits of eradicating the bulk of your debt in a relatively timely fashion far outweigh any expense that might be involved in the initial filing. In a Chapter 13, you will engage in a payment plan with your creditors, so in addition to the filing fees, there will of course be the cost of paying what you owe to your creditors. However, this takes place over a period of months or years, and many people end up paying less than the full amount of their debt.
Over 20 Years of Experience with Bankruptcy
An attorney from Price Law Group can guide you through the bankruptcy process and discuss in detail the costs involved in filing for bankruptcy. We highly recommend that you understand all every aspect of this procedure and what it will cost, before deciding if bankruptcy is the right decision for you.
Credit Counseling & Debtor Education