Wondering About the Cost of Declaring Bankruptcy? Find Out the Facts Here
October 6th, 2009 Filed under: Bankruptcy Cost,Bankruptcy Service,Bankruptcy Tips,Online Bankruptcy — Bankruptcy Author
If you are in a situation where you are simply unable to pay off your outstanding debts and even with significant changes to your expenditures you will be unable to pay them in the foreseeable future, then the chances are that you really should think about declaring yourself bankrupt. However, many people even knowing that this is the best move for them are put off by the cost of declaring bankruptcy. Some are completely unaware of the cost of declaring bankruptcy but just assume it to be higher than it actually is.
The court fees are relatively small. Chapter 7 bankruptcy incurs a fee of $274 and Chapter 13 bankruptcy incurs a fee of $189. Now, this might seem a fairly hefty fee for someone who has pretty much nothing, but consider the fact that bankruptcy can secure your long term financial freedom and this is pretty good!
But of course, the true cost of declaring bankruptcy comes in the form of legal fees. The changes to the bankruptcy code passed by Congress in 2005 meant that the process is now more complicated than ever. In fact the bankruptcy laws in the USA are now even notoriously complicated to legal professionals, so you can imagine how difficult that would be for a non-professional. This is why lawyers are absolutely essential in this process and the added complications means that their fees can be higher than they would have been before 2005. However, bear in mind that, if successful, much of your other outstanding debt could potentially be discharged, making the legal fees you incur much more manageable. Bankruptcy attorneys are also usually quite happy to arrange a manageable repayment plan with you as they are absolutely used to dealing with client in the same sort of financial difficulty as you are experiencing.
If you are thinking of Declaring Yourself Bankrupt then you need the right information before you make that important decision. Find out about the Cost Of Declaring Bankruptcy before you proceed.
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