How much does it cost to file for bankruptcy?
When deciding whether to file bankruptcy, it is common to consider how much the process will cost. This is a very important question. The answer will depend on several factors, such as the chapter of bankruptcy you file, your financial situation at the time you file and the fees charged by the law firm you retain. There are a number of other factors that can sometimes affect the cost of filing in certain circumstances, but these are the primary determining factors involved.
With regard to the first factor – the chapter being filed – the primary distinction lies in one of the fundamental difference that exist between Chapter 7 and Chapter 13 bankruptcy. A Chapter 13 bankruptcy is fundamentally a payment plan where the person filing for bankruptcy will repay their debts to creditors in monthly installments by paying an individual called the bankruptcy trustee. The trustee is a federally appointed official who is responsible for overseeing the bankruptcy case, and in Chapter 13 filings, they are also responsible for making disbursements to creditors out of the funds paid into the bankruptcy.
The size of these payments can be influenced by a number of different factors, but a common theme among them is that the payments made into the bankruptcy will also compensate your attorney for their legal fee! The cost of Chapter 13 differs from Chapter 7 because the legal fee is not paid directly to the attorney. In contrast, legal fees for a Chapter 7 filing are usually paid directly to the lawyer, either through an upfront payment before filing or through a monthly payment plan. It is important to note that the filing costs are usually paid directly before filing a Chapter 7 or Chapter 13 case. This includes the court filing fee, the cost of pulling a report on your credit and the credit counseling.
The financial situation of the person who is filing bankruptcy is another factor that will determine the cost. These factors can range from the type of debts owed, the total amount owed, the amount of assets owned by the person filing bankruptcy, and many other things. These factors can affect the amount of payments made to the bankruptcy in a Chapter 13 filing, but they can also have an impact on other things, such as whether payments must be made to the trustee directly, and how much.
Finally, the fee structure of your attorney will always be a factor. Please contact us to learn more about the specifics of what a bankruptcy filing may cost in your unique and personal set of circumstances. To learn more about the specifics of what a bankruptcy filing may cost in your unique and personal set of circumstances, please feel free to reach out!
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Something to keep in mind when considering bankruptcy is that the benefits of pursuing a filing will substantially outweigh the costs associated with doing so, for the vast majority of people who find themselves dealing with the burdens imposed by unmanageable debt. Please contact us to learn more about the benefits bankruptcy can provide for your situation. Our dedicated and experienced staff would be delighted to meet with and discuss with you how bankruptcy can work for you. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
