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?
The current cost for chapter seven bankruptcy is $274, and the chapter 13 bankruptcy is slightly less expensive at $189. What’s the difference between these two bankruptcies? Chapter seven is what most people think about because it tries to discharge your debt completely. Chapter 13, on the other hand, does not actually eliminate your debt. Instead, it creates a payment plan for you to use over the next 3 to 5 years in order to catch up on your payments.
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.
In addition to the filing fees, you’ll also have to pay your lawyer fees. By now you may start thinking that this whole thing is more trouble than it’s worth, but hang in there.
It’s true that lawyer fees can be expensive, and the new bankruptcy law makes the need for a lawyer greater than ever.
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.
The first thing you should remember is that filing for bankruptcy will automatically put your debts on hold, and your creditors will not be able to contact you until your case is finalized.
Moreover, if your case is successful, then you know what that means. You don’t have to worry about your previous debts at all if your chapter seven bankruptcy case is successful. Even if you file chapter 13, you’ll still get some relief by using a payment plan. Either way, bankruptcy should make your financial burden lighter and make it easier to cover the cost of an attorney.
