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Should you be concerned about the cost of filing bankruptcy?
Should you consider bankruptcy if you are overwhelmed with your current debt? Well, you should discuss this carefully with a good lawyer and try to decide what the best move would be for you and your family. One of the major concerns about filing bankruptcy is the cost, since anyone who has reached this point is already struggling financially. So exactly how much does it cost to file bankruptcy?
Well, the cost of bankruptcy depends on which kind you will be filing. You're probably planning to file chapter seven bankruptcy, which is the kind that tries to eliminate your debt entirely. Chapter seven cost $274 at the time of this writing. The price for chapter 13 bankruptcy, which creates a payment plan for your debt, is currently $189.
This may seem like a lot of money, but this really depends on your perspective. Think about what you're getting in return, since a successful bankruptcy case can give you a fresh financial start.
When it comes to paying for your bankruptcy proceedings, the problem may not lie so much with the court fees. After all, the main fees you'll have to worry about are your lawyer fees.
Unfortunately, the recent bankruptcy reform law has made the need for legal help more obvious, and attorneys may even charge a little higher these days.
However, you shouldn't think that bankruptcy is not an option because of the cost involved. After all, the process is designed to bring you relief even if it could have long-term consequences for your credit. The main question to ask yourself is whether bankruptcy is the way to go, and you shouldn't try to answer this question without a good amount of research and legal advice.
When you first declare bankruptcy, the court will temporarily stop all collections from taking place. Until your case is settled, bill collectors are not allowed to contact you.
If your case is successful, then your debts may be wiped out for good. This will make it much more feasible for you to pay your lawyer since you won't have to worry about your previous monthly bills anymore.
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