The purpose of bankruptcy is to get a fresh start financially; however, this is not something you can do for free. There are fees to file for bankruptcy, and you will need to pay some of these fees even if you decide to file without the help of a lawyer. Here is a breakdown of the fees you should expect to pay if you go through with this. It's important to know how much this will cost so that you can plan for it and have the money saved up before you file.
The filing fees for the court
Bankruptcy is a legal process that goes through the court system. Any time you have any type of legal problem or situation that requires the court, there will be fees. To file for bankruptcy, you must pay the court filing fees whether you hire a lawyer or not, and the amount of the fees you must pay will depend on which branch of bankruptcy you will be using.
For a Chapter 7 bankruptcy, the filing fees as of 2014 are $335. For a Chapter 13 case, the filing fees are $310. These fees must be paid to the U.S. Bankruptcy Court, and they must be paid before your case can begin.
If you have no money at all and cannot afford to pay these fees, you could apply to have the fees waived. To do this, you must fill out a form and meet the conditions listed.
If you are able to use Chapter 7 bankruptcy, your qualifying debts will be discharged and you will pay nothing for them. With Chapter 13, you will have to repay some of your debts, and this will involve making weekly or monthly payments to the trustee handling your case. Each payment you make will go towards the debts you owe, but the trustee will keep a small percentage of each payment, and this is an additional fee associated with Chapter 13 cases.
Credit counseling fees
When you file for bankruptcy, you will be required to take two credit counseling courses, and you will have to pay for these. The prices vary for the courses, but you should be able to find a court-approved program that costs $50 or less if you look around.
The majority of the costs you must pay to file bankruptcy are for legal fees for having a lawyer. It is possible to file without a lawyer, but the process is extremely difficult on your own. In most cases, the fees for a lawyer are between $1,200 to $2,500. The actual amount you will pay will depend on the branch of bankruptcy you use, the area you live in, and the complexity of your case.
If you have enough money to file for bankruptcy and would like to do this quickly, schedule an appointment with a bankruptcy lawyer like Demers Gagnier Inc. in your city.Share