There are many benefits to filing for bankruptcy. However, the process does come at a cost. There are several different fees you can occur during the bankruptcy process. Learn more about the fees you can expect to pay if you file for bankruptcy.
What Are the Typical Fees?
As with many other legal processes, bankruptcy involves some fees. One such fee is the filing fee. Currently, the filing fee for a Chapter 7 bankruptcy is $335. Chapter 13 cases are slightly cheaper and costs $310. You can also encounter a Bankruptcy Trustee fee, which varies between $15 and $20. If you have a financial hardship, the court might allow you to pay the fees through installments.
Another cost comes in the form of credit counseling. You must complete the counseling, and that comes with a fee. Additionally, there’s an expense for a mandatory financial management course. The prices vary depending on your location at the time of filing. However, it ranges between $20 and $100.
Attorney Fees
The chance of successfully filing for bankruptcy without an attorney is slim. Therefore, although filing with an attorney is more expensive at first, it could save you money in the long run.
There’s no way to say for sure how much your attorney fees will cost. If you’re filing for Chapter 7 bankruptcy, you will have a lower cost. Chapter 13 bankruptcy is more labor-intensive and tends to cost more.
In January 2018, there were 226 filings for bankruptcy in King County. While there are many successful attempts at filing, they often involve the assistance of an attorney. The process is complex and most people who file pro se don’t have the knowledge or resources for the best possible outcome.
There are several ways in which an attorney may charge you for your case. Many demand an up-front fee for their services. The price varies depending on all of the following:
- The complexity of your case
- Your location (filing in major cities tends to be more expensive)
- The quality of your attorney
The fee usually starts around $1,300 but can cost over $5,000 for complex cases.
Should You Pay for an Attorney?
Because people who are considering filing for bankruptcy are in debt, they don’t always think they can afford the cost of bankruptcy. Even worse, they don’t believe they can afford an attorney.
Unfortunately, this type of thinking is flawed. Filing for bankruptcy can save you from mountains of debt. A few thousands of dollars in legal fees is nothing compared to unpaid medical bills, costly mortgages, and more.
Without an attorney, you are unlikely to have success with your case. There are many reasons for which the court could choose to dismiss your case. For instance, you might not file the proper paperwork at the proper time. The dismissal of your case puts you in a dangerous financial situation.
The next time you try to file for bankruptcy, you won’t receive an automatic stay. Your creditors can start the repossession or foreclosure process. In some cases, they can file lawsuits that garnish your wages.
How an Attorney Can Help
Your attorney can make all the difference. They can protect your assets and handle any obstacles barring you from bankruptcy. Kenschneideratty.com has been handling bankruptcy cases for years. With his guidance, you can take on your creditors and improve your future.
