When you are considering bankruptcy as an option to relieve your financial burdens the last thing you want to be worrying about is how much it is going to cost to hire an attorney and file the necessary paperwork. After all, money is tight which is the reason you are contemplating this option in the first place. In this installment we will discuss the fees involved with filing, hiring an attorney, and additional fees you may encounter.
Fees for Filing Bankruptcy
There are many bankruptcy options to choose from but the most popular being Chapter 7 and Chapter 13. The filing fee for Chapter 7 is $335 and for Chapter 13 is $310. There may also be a fee charged by the Bankruptcy Trustee which can range between $15 and $20 dollars. Another fee you may need to cover is the cost for mandatory credit counseling and financial management classes. These classes can cost upwards of $100 depending on where you are filing for bankruptcy and the options that are available.
Attorney Fees in Bankruptcy
Many people will unsuccessfully file for bankruptcy without the help of an attorney. Paperwork often is incorrectly filed, the steps necessary are not taken, and many other hiccups plague individuals filing “pro se”, (without the help of an attorney). The truth is that filing for bankruptcy successfully most often requires the help of a bankruptcy attorney.
Bankruptcy attorneys are responsible for setting their own fees. On average bankruptcy attorneys charge $1,250 for their services. This fee varies depending on where you are filing, the complexity of your litigation, your attorneys experience and reputation. The fees for filing Chapter 7 bankruptcy are often less than those found in filing for Chapter 13. This is most likely due to the extra services that go into filing Chapter 13 such as setting up a repayment schedule and executing automatic payments.
This fee may seem like a lot at the moment. It is to be assumed that your filing bankruptcy because you are lacking the ability to pay the debt. When you take into consideration the average debt that is written off in bankruptcy is $15,000 that fee seems relatively reasonable as it takes a large debt down to pennies on the dollar.
Filing for bankruptcy isn’t an option that is easy for individuals to make. It is one that should be made only after much research and contemplation.
Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy. More information can be found at http://bohikianlaw.com.