There is a cost to file for bankruptcy but it is workable for many individuals and their families. As you may know, bankruptcy is a legal procedure where individuals file for protection under Chapter 7 or Chapter 13. Filing bankruptcy can help you overcome financial challenges and get your credit rating back to a respectable level. However, there are costs that you will have to pay to file for bankruptcy.
If you’re already struggling financially, the idea of paying to file for bankruptcy can seem challenging. While filing for bankruptcy can be a good option to relieve you of overwhelming debt, you can expect to pay some money in association with your case.
The Cost Of Bankruptcy
According to Debt.org, the average consumer spends anywhere from $1,500 to $4,000 total on legal fees and court filing fees. You will also need to work out payment to your attorney for their assistance and service.
Bankruptcy Filing Fees
Chapter 7 bankruptcy filing fees generally cost around $338, whereas Chapter 13 costs around $313 to file, according to NerdWallet. However, there are some programs that could defray these costs for some consumers that earn under a certain threshold. Your bankruptcy attorney can give you more precise information about the filing fee in your state, municipality, and personal situation.
Attorney Fees
An attorney fee structure depends on many factors. For example, how extensive is the amount of work you need the lawyer to do for you? Are you working with an experienced lawyer who specializes in bankruptcy law or a lawyer who has to be paid for their time to research and learn what to do on your behalf? Do you file Chapter 7 or Chapter 13? There are several ways that attorneys charge fees, including flat rates, hourly rates, contingency fees, retainer fees, etc., and how an attorney charges depends on the way the attorney conducts their practice.
Complexity matters, too. A simple case might take less time to settle than a complex one. You may need an attorney with negotiating skills and Bankruptcy Court experience to help properly discharge your debts through Chapter 7 or Chapter 13.
Cost of Credit Counseling
Individuals who file for bankruptcy are required to obtain credit counseling. To assist individuals in finding a credit counseling agency, the United States Trustee Program (USTP) maintains a list of approved agencies on its website. The USTP cannot endorse or recommend any particular agency on its list of approved agencies, or guarantee the quality of its pre-bankruptcy counseling or services. You should be careful when choosing a credit counseling service as to its costs. It is probably best if you follow the advice of an experienced bankruptcy attorney when choosing an agency.
Court Costs
When you file for bankruptcy, you may have to pay some court costs. In general, courts charge a filing fee for every case that they hear. These fees vary based on the jurisdiction. Your bankruptcy lawyer will make you aware of any court costs.
How to Pay for Your Bankruptcy
Filing bankruptcy often means you’ve already had some sort of unexpected event in your life, like losing a job or getting sick, that makes it difficult to keep up with your bills. You may find yourself no longer able to keep up with house payments or rent as creditors harass you for money. Unfortunately if you find yourself in this position, you may obviously worry about affording a bankruptcy lawyer.
Discuss it with an Experienced Reputable Bankruptcy attorney
Though you could ask friends and family members for help, or look into crowdfunding options like GoFundMe, you should first discuss your concerns with a knowledgeable and compassionate bankruptcy attorney like Bill Kain or Margaret Henehan. You aren’t the first person to worry about this. At Kain+Henehan, the first step is a free 60 minute Consultation.
Kain+Henehan offer Free 60 Minute Consultation
Your consultation can be completed virtually, via phone, or in-person at one of our two offices in Mendota Heights and St. Cloud.
You don’t need to prepare anything for this meeting, but you just should have a general idea of your total debt and what your assets are.
We will review your concerns with you, outline some options, and upon conclusion, we will provide you with what is needed for our next appointment.
Get Help from Local St. Cloud Bankruptcy Attorney
The cost to file for bankruptcy in the United States should not be a reason to avoid this option. The ability to file for bankruptcy protection is your right. If you decide to opt for debt consolidation services in lieu of filing for bankruptcy, you could miss out on some of the protections available to you. Bankruptcy can be the safety net you need to help you at a difficult time.
Kain+Henehan helps clients in the St. Cloud and Twin Cities communities file for bankruptcy protection. If you are looking for an expert bankruptcy attorney in St. Cloud or in the Twin Cities or in Minnesota, we would love to help you get your life back on track financially. Contact us by calling (612) 438-8006 or filling out the online form.
