Costs To Declare Bankruptcy
Bankruptcy Is Always An Option
You are in the grips of financial distress. It seems as if the whole world is tumbling down upon you and you have no where to turn. You want to file bankruptcy but you worry that you cannot afford an attorney and you are unable to pay the required filing fee. As bad as your situation is, you need to know that you are not shut out from the bankruptcy courts. The costs to declare bankruptcy are not so great as to keep a person who needs to file from filing.
At some point you may have heard someone say to another, “You are too poor to file bankruptcy.” Perhaps someone has said those discouraging words to you. Typically, the person speaking those words mean them in a joking manner. However, financial distress is no time for jokes and banter. You need advice which will help you navigate through the turbulent waters you find yourself in amidst the sharks of debt collectors and attorneys threatening lawsuits.
Filing Fees And Lawyer Costs
There are two costs to declare bankruptcy you need to be familiar with. The first is the filing fee which is paid to the Federal District Clerk’s Office. While filing fees may vary among the several federal districts, you are looking at around $299.00 for a Chapter 7 and $274.00 for a Chapter 13. As for attorney fees, there are no uniform ranges even within the same city. You can find attorneys charging from a few hundred dollars to several thousand dollars. You will just have to shop around. Do not neglect the advertising section of your local newspaper where some attorneys advertise their lowest rates.
Different Bankruptcy Options
You have more flexibility in paying these costs under a Chapter 13 than you have under Chapter 7. One way of being able to make these payments is to stop making payments on any debts you intend to discharge a few months before you file so you can generate the funds needed to pay these costs. Bankruptcy is a life boat for those drowning in a sea of debt. There is no reason to prevent you from getting on board.
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