Tips On Low Cost Bankruptcy

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The decision to file for bankruptcy is always a difficult one as it is surrounded by a heavy debt load. Low cost bankruptcy is possible if you’re willing to do the research necessary to find a cost effective lawyer. The two main components are lawyer fees and filing fees; therefore, if you can keep your attorney fees down to the bare minimum you have a better chance at saving a few dollars.

There are two types of bankruptcy, Chapter 13 and Chapter 7. Chapter 13 will restructure your debt, so you have an organized consolidated plan to pay down your debt. The filing fees are $235 to start the case and $39 for the administrative expense. Chapter 7 will eliminate your debt; you have to pay $245 to start the case, $39 for the administrative expense, and $15 for the trustee fee. Filing fees are usually non-negotiable as they are paid directly to the courts. Sometimes they can be waived if you are in dire financial straits, but it is best to count them in to your expenses. Fees may vary from state to state, and it is best to check this information for accuracy for your specific state.

Lawyers charge about $1000 for a bankruptcy. Cheap bankruptcy lawyers do exist, and you should invest the time to see if there are any in the area you live. A package will let you know exactly what the lawyer will do. If packages are not available you may ask for an itemized list and see if services the lawyer are offering are ones you can do on your own, or hire a cheaper service will get you a low cost bankruptcy. Of course the cheapest route all would be to do it yourself, but this is not recommended as the laws have become more complex since the Bankruptcy Reform in 2005.

Other articles of interest include topics:  after bankruptcy mortgage refinance, medical bankruptcy.


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