When it comes to great ways to start over, there aren't many options better than declaring bankruptcy. In addition to erasing previous debt, bankruptcy also gets your old creditors off of your back, reducing your stress levels and improving your life. However, many people don't understand the intricacies of working with a bankruptcy attorney, which is why things can get confusing sometimes. On this website, check out great information about declaring bankruptcy so you can decide what is right for your situation. After all, it could really help you to get your health on the right track. Check out these blogs to find out more.
When people turn to bankruptcy, it is often because they have vast amounts of debt they cannot afford to pay. Bankruptcy can provide a solution for the debt problems, but it creates a potential challenge for some people – how do you pay the fees to file? Bankruptcy is not free, and it is not cheap, but you must still pay the fees to file. Here are several things to understand about the costs of filing for bankruptcy and ways to pay for it.
The Average Costs to File for Bankruptcy
The first thing to learn is the average costs for bankruptcy. The fees you pay vary by branch, and they also depend on your case and the law firm you hire.
The costs for bankruptcy include three primary things. The first is the filing fee. To file for Chapter 7, you must pay $335. To file for Chapter 13, you must pay $310. The next fee is for credit counseling courses you must take, and this normally costs less than $100.
The third fee is the legal fees your bankruptcy lawyer charges. You can expect to pay anywhere from $1,000 to $3,500 for legal fees if you use Chapter 7. Chapter 13 might cost more, and you can expect to pay as much as $6,000 for the legal fees.
Ways to Pay the Fees
One challenge many people face is finding a way to pay the fees needed to file. The fees are somewhat expensive, yet you can receive a lot of relief through bankruptcy in return. One method you can use is a payment plan. Many lawyers accept payment plans for the fees, but you should know that your lawyer will not file the bankruptcy case until you pay the fees.
Another option is to stop paying your debts. For example, if you have credit card payments each month that add up to $800, stop making these payments. If you stop making the payments, you can use this money to pay the legal fees for your case.
If you really have no way to come up with any money to use for bankruptcy, talk to your lawyer. Your lawyer might be able to help you find a way to get some of your fees waived, but even so, It does not hurt to ask your lawyer about this option if you want to file but cannot afford the costs.
If you have questions about the costs of bankruptcy, talk to a bankruptcy attorney in your city.