It costs money to declare bankruptcy. Seems backwards, doesn’t it?
You have no money, which is why you’re filing for bankruptcy, yet it costs money to file bankruptcy. There really is not such thing as a free lunch! (and Bankruptcy is no free lunch, let me tell you)
Bankruptcy Costs
The us bankruptcy courts have filing fees. Chapter 7’s filing fee is $299, Chapter 13’s filing fee is $274. On top of that you have…
Attorney Fees
That’s not so bad, right? Well, hold your horses, that doesn’t include a lawyer!
Look, I had enough trouble just filling out the paperwork that my lawyer gave me. I can’t imagine trying to fill out and gather all the necessary paperwork and deal with the trustee all by myself.
When you’re thinking about Bankruptcy, it’s likely you’re very stressed (I know I was…heck, I still am). Most lawyers will have an option to pay their fee in installments. If they don’t….move on.
That said, I wouldn’t recommend the cheapest lawyer in your area either. I’d look for perhaps newly on their own bankruptcy attorney. Often new lawyers will work at a large firm out of Law School for a few years, then strike out on their own practice.
My experience with my lawyer was that although she was younger, she was very experienced (had worked at a large firm for a few years), but not outrageously expensive because her own practice was fairly new. Obviously this is just my two cents, most Bankruptcy attorneys will give you a free initial meeting. Setup 3-4 in a day, and see who you feel most comfortable working with and who is willing to work with your financial situation.
You’re going to end up paying anywhere from $700-$2000 to file Chapter 7, depending on what area of the country you are in. In my opinion having a lawyer severely lowered my stress during this whole process.
Setup a free evaluation. Best thing I did
A local bankruptcy attorney can help you understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, so that you can make an educated decision about the best next step for you. Fill out the form below for a free bankruptcy case evaluation.
{ 23 comments… read them below or add one }
…And then you walk in to court and the judge says, “you have all this money to pay for the filing and your attractive young attorney, why can’t you pay your bills instead?” Right?
well, it’s like this with anything…
just like JW at Weneedtobedebtfree… he had to spend 2500 to get 10000 of debt eliminated from a fine from the state. in the end, money well spent.
we are still interested to do a short sale but filed for bankrupcy. How much is the extra cost from the attorney to do this for us? Just not much out there on this subject. Thank you. Jane
WHEN YOU SPEND WHAT EVER THE COST MAY BE FOR FILING BANKRUPTCY IS IT POSSIBLE THE JUDGE WILL SAY NO , U WILL NOT BE DICHARGED.
If you have no property or possessions, they chance of anyone challenging the BK is slim. I own nothing, and have not been able to find a job. I decided to try selling insurance. It’s hard. No one has the money to buy health insurance. I am still applying for everything I am qualified to do with all the levels of government. My degree is so specialized and I have no experience so no one will hire me. ouch. I am stuck. I can’t borrow any more of Mom and Dad’s money to pay my bills. My parents can’t afford it. I have no options but Bk now. Which really sucks. I spent 10 years building the perfect credit report and 6 and half years in college expecting to get a great job and buy my first house. I am 39 years old and graduated in Dec 2007. I still live in an apt. If you have no choice file BK the creditors could careless that you can’t make the full payments. They add fees and up the interest…like that will somehow make money appear in my bank account to pay them?? I feel bad, but I feel like I have no choice. I only have money if I sell something and I can’t promise that will happen. I try to send money every month to everyone of my creditors. But they don’t care about a show of good faith. They only want their money.
I am 24 year old, starting a new life.
After a string of retail jobs after graduating high school, and a fairly successful webhosting operation, I decided that school was the only option if I ever wanted to move ahead in society. I completed my first semester, woo. I will be going for a four year degree in electrical engineering, after which I will try to secure a career in the renewable energy industry.
Back to my first webhosting operation. I was still living at home, with my grandfather trying to get the company going. Things were going well, and I was building a solid client base, then my grandfather’s health started deterorating badly, eventually landing him in a nursing home and me out on my own. Credit card debt from the hosting company was at about $15000, ouch!
And since I didn’t have any school or any other skills besides web design and business, the best job offers that I could find were retail jobs paying $10.00-$12.00, barely enough to feed myself, make car insurance and to pay for a room at my buddy’s house.
My credit cards started being discharged, and then I couldn’t even get a car loan.
I had to beg my grandmother to co-sign on a car loan for me. But wait, I forgot to check and see what the payment on the insurance would be. Because of my horrible credit, and a wreck, I was paying close to $240/mo in insurance on a fucking 2004 Honda Civic. $20 a month more than on my 6-year term car loan.
I saved up enough cash and sold the car, to get out of the loan.
I found another B.S. grocery store job and rode my bike to and from 6 miles everyday. The pay was $10.00 an hour, but it was enough for me to save up for two months and combine my last year’s income taxes and the two month’s worth of paychecks so I could afford a luxorious 1994 Honda Accord LX with 145,000 miles.
I rebuilt the car basically, putting in a new transmission, a new distributor cap and rotor, plugs, plug wires, spedo sensor, timing belt, 4 new ‘used’ tires, brake pads and o2 sensor, which I am using to commute to school.
Because of this string of bad luck, I am now at a point where I have to file for Chapter 7 liquidation, because with my bad credit I cannot even find an apartment where anyone will be willing to lease to me. The only job that I can find with my horrible credit, is a part-time work-study job that pays $7.50 an hour, and I get about 18 hours a week.
So, this summer, I plan on filing for Chapter 7 liquidation so that after I graduate in four years (school is going great, by the way), I will not be held back by my past life’s obstacles. Hopefully this Chapter 7 will not preclude me from getting a job offer.
Hopefully in 90-days I can obtain a secured credit card with no monthly fees or anything, so I can have a credit score in a year and move closer to my school so I won’t have to worry about this old beater anymore. Man, it has taken me a long time to get my shit together.
The thing I hate about paying back creditors is that every time you make a payment it seems if you still owe more cause they still add charges on top of what you pay. It is messed up and they dont care. I completely stopped paying on all my credit cards after that and I told them until I see one single amount that will stay that amount forget them cause im not paying it I am only paying for that I used on the card not the fucking fees and shit.
I agree with a lot of these comments. ESPECIALLY the one about how credit card companies will jack up the interest and add fees as if that’s going to make the money appear in your bank account?!?!? I’m on the verge of filing chapter 7. I’m just doing my homework on it right now.
I am working at the moment but there is a chance I will be laid off in 3 weeks si I am doing my homework. I stopped using my CCs over 6 months ago and am in the middle of paying them off and not spending any money unless I need to and I have it in my account or my emergency account to pay for it outright.
But, If I get laidoff, i will not be able to pay for my house, and my CC bills, along with insurance, and help with my family and those who aren’t working. I am not trying to make excuses or anything. just felt like commenting after reading a few other posts.
Anyway, I hope filing for bankruptcy will not be too much of a hassle, though I know it won’t be easy.
Thank all of you for your honesty. this is a very difficult situation for me. I am a little afraid, embarrassed and confused. I have a job, divorced, 4 children and barely making ends meet. I don’t own a house or property,just have credit card bills, payday loans, medical bills, student loans, and the everyday living expenses and daycare and I am barely making it. I feel like I have no choice.
How can collection companies buy your debt for 5 cent’s on the dollar
and still get too charge you the full amount you owe? while at the same
time the debt purchaser or collection agency that bought the debt
get’s a tax deduction or write off? You talk about a government bailout
for bank’s but yet nobody talk’s about the current issue that collection agency’s have been
getting government bailout’s for the past ten year’s? hmmm; wonder if anyone
ever thought of starting there own collection agency too buy our own debt for 5cent’s on the dollar and so we can get our own tax credit?
I declared bankruptcy years ago. It was a godsend. I suggest it to anyone who is buried in debt. I found that after struggling for about 6 months after the bankruptcy to get rolling again, I was actually able to buy all the stuff I wanted that would normally had to go onto a credit card. Big tv’s, computers, etc… all could be had if I waited about 60 days to save up and then pay in cash. To show an example of why I dont feel bad about it is : I had a capitol one card $300 limit and 100 of that was prepay. They wouldnt apply payments on time, nor would they list fees until 59 days had past (just before the 2nd billing cycle). So I would think I was ahead, but then find out 2 months later that I was charged a $50 late fee which put me over my limit, which then caused a $50.00 over limit fee. By the time it was done, this card with its 300 limit of which 100 was covered, had a bill of over $1400.00 on it. Whats the point of even trying to pay an $1100 minimum payment. Hello bankruptcy, hello better life. Dont feel bad about it. You will struggle a bit at first, but when $300 a month is no longer going out the door to credit cards, think of how much easier that money can make your life when it is still in your pocket.
Hi, I am going to file for bankruptcy in California. Does anyone have a good reference to a lawer thats not expensive? Thanks.
J
Try your City’s BAR Association. Most likely, they’ll have Attorney referrals (SF has it for $25.00) – I just contacted them to get myself a BK atty.
Good luck.
Ok….I am wayyyyyy in debt and I feel that Chapter 7 is my only alternative.
But I am confused….Do you have to go before a judge and can he/she turn
this down? And how do I pay for a lawyer when I can’t pay my electric bill..
Hello, AZ in the summer! $500 bills!!!!
hello everybody;I need some help please.I am in debt with credit cards.i have a house it worth it less then i owe to bank.if i go to bankrupcy credittorts will go after my house.?And I live Longisland NY anybody knows lawyer charge very less for my kind of cases.Thank you all
Hello Everyone and Thank you for the great comments. I was kind of, sort of smart, putting my grad classes on two credit cards instead of taking out school loans(which are almost never forgivable, short of dying, writing from experience my 55 year old brother flatlined for 4 minutes had a massive stroke and school loans are still garnishing money out of his Social Security Disability check. You can get it waved but numerous Doctors have to fill out pages of paperwork on your behalf) Here I was, a supervisor at a world renowned cultural institution and, yep, laid off and broke with $12,000(used to be $ 17,000) in credit card debt. I know its not a lot but the $300.00 in monthly payments have dwindled my savings account. I’m seriously thinking of walking away and declaring bankruptcy. I mean, sure my credit is good, but who cares, what did good credit get any of us anyway. Thank you everyone for your terrific thoughts. In these economic times. I would not be surprised if everyone takes a ding on their credit reports.
Hi,
Anyone know who can help with a Chapter 7 Bankruptcy application in Los Angeles, California?
I just don’t have the money to pay for an Attorney that will help with the application.
Thank,
So im 25 and have about 16k in CC debt. On top of that I own more on my car then it’s worth. Currently my wages are being garnished by a credit card company. I make just enough to pay rent, car loan, insurance, and food for the month. Looking into the BK option and not sure where to start or even what chapter to file under.
I’m going through a divorce and my wife stopped paying on her half of the bills and left me to deal with credit cards, car loans, and over whelming amounts of defaults on my credit report. I’m having a hard time finding apartments and I’m having a hard time finding decent paying jobs. I’m currently in school for my bachelors and i’m going to have to pay back school loans in addition to that i’m paying childsupport. What are the cheapest ways for filing bankruptcy? Any advice is appreciated.
I was slammed with a summons, I am in debt with Chase Credit card..umm owe them ALOT. i feel like BK may be my only hope. really. Because what else will happen> I will go to court they will say “can you pay 1000 a month” nope i am a social worker..hmmmm. So a BK may be the way. my concern is jobs in the future when they ask if you have a BK. What do you think?
To those who asked: the criteria for bankruptcy are set by law, not the judge’s whim. Unless your case is glaringly abusive, like hiding assets or making purchases intending not to pay them back, your creditors won’t object, and the judge will never even consider refusing your case.
Your attorney can tell you if you have anything to worry about. The vast, vast majority do not.
Do you have to hire a attorney to file bankruptcy, or can I fill out the forms myself and taKE THEM TO A JUDGE ?