Filing bankruptcy is a good option for some people to get a new start, free of excessive debt. However, there are several costs to filing bankruptcy. The average cost of filing bankruptcy may range from under $1800 to many times more, but depends on several factors, such as filing fees, location and services needed.
Many people choose to research their bankruptcy needs more closely before filing. These people typically consult with bankruptcy lawyers, who can often clarify the bankruptcy process. Complete the following form to get in touch with a nearby bankruptcy attorney for a free, no-obligation consultation.
Chapter 7 bankruptcy, or straight bankruptcy, involves selling off of assets in order to eliminate unpayable debts. In Chapter 7 bankruptcy, there are a few sources of fees:
Attorney fees for filing a chapter often average upward of $1500 per case plus filing fees, but vary strongly by area and the complexity of the case.
Chapter 13 bankruptcy allows debtors to lighten their debt load by negotiating a three to five-year payment plan to be paid down monthly. The process can be more involved than Chapter 7, by virtue of being a longer-term agreement, and average costs tend to be higher.
Average costs for filing Chapter 13 bankruptcy can be upward of $3500. Luckily, Chapter 13 attorney fees are typically included in the debt paid down in the payment plan settlement, so some debtors may not end up paying the entire amount at once.
Chapter 13 also has a higher "cost" because you'll end up repaying your debts through the courts over time, rather than having them completely wiped out. However, Chapter 13 may allow you to prevent home foreclosure or repossession of your car.
Both Chapter 7 and Chapter 13 bankruptcy may seem expensive, but either one can be an effective option for getting a fresh financial start. People can research their options and requirements in order to help keep bankruptcy costs down. Fill out the following form to get in touch with a nearby bankruptcy lawyer for a free, no-obligation bankruptcy consultation.