One of the obstacles that keep people from considering bankruptcy as one of their options is the cost.
Many assume that the cost to declare bankruptcy is too high and will simply add to their current financial problems.
After all, if a consumer is struggling to pay off current debts as it is, how will adding one more fee help the situation? Well, first we should take a look at the actual cost of filing bankruptcy with the court.
The court filing fee for chapter 7 bankruptcy is $274, while the fee for chapter 13 filing is $189.
This may seem like a steep price to pay for someone who is already in serious financial straits, but the numbers are much more reasonable when you consider what you're getting in return.
If you're successful in filing chapter seven bankruptcy, then you'll be able to wipe out most of your debts.
Chapter 13 on the other hand, would provide you with a long-term repayment plan instead of simply doing away with your bills.
Either way, declaring personal bankruptcy can be a lifeline for those in serious financial difficulties.
When you consider what you're trying to achieve with bankruptcy, the fees for filing your case do not seem so great.
However, as with most legal issues, the real cost usually comes with your lawyer fees.
Your legal fees can certainly add up, and the recent bankruptcy law changes makes things more complex and gives your lawyers more work to do.
So how are you supposed to pay for all of this? Well, you should keep in mind that if your application is successful, you may be able to wipe out most, if not all, of your debt.
This should make it much easier to take care of your legal costs.
In fact, as soon as you file your request with the court, you receive an automatic stay which means that no creditor can demand payment from you until your case is resolved.
So right away you have freed up some funds which can be redirected to cover legal fees.
In any case, you want to try and find the best bankruptcy lawyers that you can afford.
Choosing the cheap bankruptcy attorney who doesn't fill you with confidence is simply not worth the risk.
Many assume that the cost to declare bankruptcy is too high and will simply add to their current financial problems.
After all, if a consumer is struggling to pay off current debts as it is, how will adding one more fee help the situation? Well, first we should take a look at the actual cost of filing bankruptcy with the court.
The court filing fee for chapter 7 bankruptcy is $274, while the fee for chapter 13 filing is $189.
This may seem like a steep price to pay for someone who is already in serious financial straits, but the numbers are much more reasonable when you consider what you're getting in return.
If you're successful in filing chapter seven bankruptcy, then you'll be able to wipe out most of your debts.
Chapter 13 on the other hand, would provide you with a long-term repayment plan instead of simply doing away with your bills.
Either way, declaring personal bankruptcy can be a lifeline for those in serious financial difficulties.
When you consider what you're trying to achieve with bankruptcy, the fees for filing your case do not seem so great.
However, as with most legal issues, the real cost usually comes with your lawyer fees.
Your legal fees can certainly add up, and the recent bankruptcy law changes makes things more complex and gives your lawyers more work to do.
So how are you supposed to pay for all of this? Well, you should keep in mind that if your application is successful, you may be able to wipe out most, if not all, of your debt.
This should make it much easier to take care of your legal costs.
In fact, as soon as you file your request with the court, you receive an automatic stay which means that no creditor can demand payment from you until your case is resolved.
So right away you have freed up some funds which can be redirected to cover legal fees.
In any case, you want to try and find the best bankruptcy lawyers that you can afford.
Choosing the cheap bankruptcy attorney who doesn't fill you with confidence is simply not worth the risk.
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