Cost of Declaring Bankruptcy

You’ve crunched the numbers over and over again and there just doesn’t seem to be anyway to keep up with your mounting debts. You’re ready to file for bankruptcy but you’re afraid you can’t afford it. After all, how can the court expect someone to pay for filing bankruptcy when you’re obviously facing financial hardships? Depending on your circumstances, the small fees you’ll pay to file bankruptcy are worth every penny—especially since the whole point behind filing Chapter 7 is to wipe out most, if not all of your debt. If you’re considering filing for Chapter 13, your debt will not be wiped out but instead you will be set up with a long-term repayment plan that better fits your budget.

Depending on where you live, filing for Chapter 7 is usually close to $300 while filing for Chapter 13 can cost just under $200. It sounds expensive (especially for someone who is facing filing bankruptcy). But remember, bankruptcy is like a life preserver for those that are drowning in a sea of debt. The court can immediately rule that creditors must stop demanding payment from you once your application has been accepted. This is known as an automatic stay.

If you are seriously considering filing for bankruptcy, the most important step is to contact a qualified attorney that specializes in bankruptcy law. Your attorney can help you through the dizzying maze of petitions, paperwork and tax returns. The attorney you hire will also ensure that your legal rights are protected.

You may be wondering how in the world you’re going to be able to afford an attorney if you’re filing for bankruptcy but the truth is you can’t afford not to! Remember, your attorney will be working to free up your debts, which will in turn free up your incoming money. But don’t just go with the first bankruptcy attorney you find. Make sure that he or she has the experience and qualifications you’re looking for. This is not the time to be cheap with your money! Hiring the wrong bankruptcy attorney can cost you far more in the end.