What is the cost of bankruptcy? The cost depends, but filing has a minimum fee. So you may be wondering how you can afford to file bankruptcy if you’re already in financial trouble.
In this short article, we break down the costs associated with bankruptcy.
The Cost of Bankruptcy
One of the first questions a potential bankruptcy client asks is what is the cost of bankruptcy? Is the cost of bankruptcy expensive?
It’s a valid concern considering individuals thinking about bankruptcy are in the midst of challenging financial times.
The Cost of Bankruptcy Breakdown
Chapter 7 – $338 court filing fee
Chapter 13 – $313 court filing fee
You can see a full list of bankruptcy fees and costs at the U.S. Bankruptcy Court.
If you’re unable to afford these fees, you can ask the court for permission to pay off the amount through installment payments. In rare instances, the court will waive the filing fee if you make less than 150 percent of the federal poverty line and you cannot afford payments.
Credit Counseling Costs
If you file for bankruptcy, you’ll be required to take two credit counseling courses. These are not free. The classes will cost you between $30 and $50 depending on which private credit counselor you use.
If you decide to seek legal counsel for your bankruptcy, you’ll incur attorney fees. The cost of those fees will depend on which chapter of bankruptcy you file and your individual circumstances.
Advantages of Hiring an Attorney
Some of the advantages of hiring a bankruptcy attorney include:
- understand what property you may lose due to the bankruptcy
- what chapter of bankruptcy you may qualify for
- how to avoid certain actions that could discharge your bankruptcy
Talk with a Debt Resolution Attorney
Bankruptcy is a complex process. Schedule a free case assessment when you call 303-688-0944.