People contemplating filing for bankruptcy typically want to know two things: “How can I possibly afford to pay to file a case?” and “How much does bankruptcy cost?” This post discusses the the affordability of bankruptcy. To learn more about the specific costs of filing a bankruptcy case, click here.
Understandably, the combined legal fees and court costs associated with filing a bankruptcy case (typically between $1,335 and $1,535 for a Chapter 7 case) are of critical importance. Typically, someone who is even thinking about filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case is already struggling to keep up with their financial obligations. However, coming up with the money to file bankruptcy–while sometimes difficult–is worthwhile in the long run, especially when it results in a discharge of many debts and a fresh financial start.
If paying the fees and costs is an issue, there may be several ways of deferring payment of court costs or raising the money to hire an attorney to file your case. As for deferring costs, the bankruptcy court may allow you to pay the filing fee in installments. In a chapter 7 bankruptcy case, the filing fee could potentially be paid over the life of the case in monthly installments.
Aside from court costs, there are attorney’s fees. In a Chapter 7 case, the attorney’s fee usually must be paid in full before the case could be filed. Trying to come up with this money, especially during difficult financial times, can sometimes be difficult and may require some creative thinking. It may be necessary to budget and save for the case. I am happy to assist with working with you to develop a budget so that a little could be set aside each pay period or every month. I find that when a client works with me to create a budget for this purpose, it tends to provide accountability and often accelerates his or her ability to save. Other clients choose to move forward right away, either looking to their savings, using a tax refund, or accepting help from family or friends.
Whatever your specific circumstances,I am always happy to provide a free, no-obligation consultation to review your situation, determine if bankruptcy is right for you, and explain the fees involved.
To schedule your free consultation,