The biggest irony of filing bankruptcy is that the petition cost you huge chunk of money. But exactly How Much it Cost to File Bankruptcy? Well, you need to understand the fact that the cost of filing bankruptcy usually varies depending upon the state, company and bankruptcy types. There are two different types of bankruptcies which are common filed in the state courts today. Chapter 7 and Chapter 13 Bankruptcy and the general cost that is associated in filing the bankruptcy and the manner in which you pay it off usually depends on the type of bankruptcy that you file in the court. Moreover, where and how you file the bankruptcy petition also play a crucial role on deciding the overall cost.
Chapter 7 Bankruptcy Filing Cost
Also called as Fresh Start Bankruptcy, the Chapter 7 Bankruptcy involves discharge of different types of unsecured personal debts such as clearing your credit card bankruptcy and this gives a great sense of debt relief. Chapter 7 Bankruptcy gives the applicants to start everything fresh and have great control over their finances. Chapter 7 Bankruptcy is mainly preferred as it liquidates most of the unsecured debts, but not all qualify for the chapter 7 Bankruptcy. Applicants whose income is more than the state median need to undergo means test to ensure that you are not misusing the Chapter 7 option.
Apart from the education and counselling fees, some of the unavoidable expenses linked with the Chapter 7 Bankruptcy is collective filing fees which includes the miscellaneous administrative fees, case filing fees and trustee surcharges. These charges are mainly paid off to the clerk of courts at the time of filing the case. But, if you decide to employ the services of bankruptcy lawyer, then the charges would shoot up and you need to pay additional fees for the attorney too which may add up to the total cost.
Chapter 13 Bankruptcy Cost
Chapter 13 Bankruptcy doesn’t not involve liquidation of the debts like Chapter 7, it is a reorganization bankruptcy that is designed to help debtors to develop a plan to repay all or some of their debts. To qualify, you need to be a working professional with regular income. Chapter 13 Bankruptcy is filed when the applicant doesn’t qualify for Chapter 7 and want to get relief from the current debts. Moreover, applicants who choose to retain some of their assets with them choose to file Chapter 13 Bankruptcy as it gives options to stop foreclosure of assets.
Just like Chapter 7, the applicants who file for Chapter 13 Bankruptcy need to pay off the collective filing fees which comprises of case filing fees, administrative fees and others. These charges are required to be paid off at the time of filing the case. Moreover, if you decide to hire the services of Chapter 13 Bankruptcy lawyers, then you need to pay more money for it. However, the charges of Chapter 13 Lawyers are higher than the Chapter 7 Lawyers because the time period for completing the process is quite longer than Chapter 7. It requires more paperwork and this is the part of job of the attorney and hence you need to pay extra for it.
The cost filing bankruptcy also varies depending up how you are filing it. Many people prefer filing the case by their own, while others prefer to file bankruptcy under the supervision of bankruptcy lawyers. So, you need to know that the bankruptcy petition filing cost is different in different states and you can check for the latest filing charges online from the website of We The People Bankruptcy. It provides you with complete details about filing bankruptcy and the cost involved in the process.