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Cost of Filing for Bankruptcy

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Life unfortunately brings about challenges at times. These challenges often involve money issues. Unexpected expenses can bring about tough financial times, especially when a person is on a tight budget and has no savings. Some common financial issues include job loss, medical bills, car repairs, home repairs and divorce.

When these issues occur, bills tend to pile up. A person can get further and further into debt. At some point, it makes sense to just give up and file for bankruptcy.

However, filing for bankruptcy is not exactly an easy process. It takes money, which is ironic considering that the reason why people file for bankruptcy is because they have no money. You might have thought that filing for bankruptcy would be free or at least inexpensive, but it can actually cost as much as $4,000.

The biggest part of this cost is hiring a lawyer. While you can technically file for bankruptcy on your own, your chances of success are slim. For Chapter 7 bankruptcy, the success rate for filing on your own is just 6.1%. For filing for Chapter 13 bankruptcy, the success rate is even lower—a dismal 0.5%.

What Costs Are Involved?

There are several fees involved in a bankruptcy filing. First are the filing fees. A Chapter 7 bankruptcy will cost $335, while the cost is $310 for Chapter 13. If you switch from Chapter 7 to Chapter 13, then you won’t have to pay the fees twice. However, if you go from Chapter 13 to Chapter 7, you will have to pay the $25 difference.

Bankruptcies also require two courses. You will be required to take a credit counseling course before you file. This course will help you understand if filing for bankruptcy is a good idea. After you file, you will then need to take the debtor education course. This course will help you learn how to make good financial decisions. These courses cost $20-$50, based on the provider. You can take them online or over the phone.

Next are the lawyer fees, which can vary by location and attorney experience. Expect to pay $1,000 to $1,500 for Chapter 7 bankruptcy and $2,500 to $3,500 for Chapter 13. If your case is complex, you will pay even more. The good news is that if you choose a Chapter 13 bankruptcy, you can incorporate the lawyer fees into your repayment plan, so you don’t necessarily need to pay the entire amount upfront.

Contact a Coral Springs Bankruptcy Attorney

The irony of filing for bankruptcy is that it’s not cheap. There are various costs involved and the biggest cost is hiring a lawyer, which is a necessity. Filing of bankruptcy is just not something many people are successful at doing on their own.

A Coral Springs bankruptcy attorney at the Law Offices of Barry S. Mittelberg, P.A. can help you file for bankruptcy and get the relief you need. Stop dealing with creditor harassment and take control of your finances. Schedule a free consultation today by calling our office at 954-752-1213.

Resource:

fool.com/the-ascent/banks/articles/how-much-does-it-cost-file-for-bankruptcy/

https://www.mittelberglaw.com/bankruptcy-on-the-rise-among-seniors/

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