Bankruptcy Chapter 7 Cost

Sometimes when bills get too overwhelming and you can't begin to repay your debt, filing for bankruptcy may be an option. When you decide that this is the best option for you, you need to decide which chapter bankruptcy you need to file. Chapter 7 bankruptcy is one common among Americans. While filing chapter 7 bankruptcy may seem like a way out of paying any money, there are still fees associated with this process.

Chapter 7 bankruptcy is designed for married couples, small business owners and even individuals who want a fresh start in their credit, but are unable to pay their current debt. A person filing for bankruptcy under chapter 7 is usually able to exempt their property from being touched. Also, chapter 7 bankruptcy can discharge you from obligations to creditors.

The first cost is filing chapter 7 bankruptcy is the case filing fee. This fee is $155 and is charged just for being to start a case to be discharged. Chapter 7 bankruptcy costs are all subject to minimal changes depending upon the state that you are filing in.

The next cost in filing for chapter 7 bankruptcy is a miscellaneous administrative fee of $45. Along with this is also a $25 trustee surcharge. These filing fees are subject to change and can be paid in up to 4 payments over a 120 day period.

There is also an additional cost to file chapter 7 bankruptcy. This includes a bankruptcy forms kit that costs between $40 and $160, depending upon which state you live in. Also, if you choose to hire a lawyer to represent you, this will vary depending upon the lawyer. Costs for a lawyer can run as high as $8,000 depending upon how much money you are in debt.

Filing for chapter 7 bankruptcy can be an option as a fresh start in your credit. The cost to file chapter 7 bankruptcy will greatly vary depending upon your personal situation, but can be a significant break in your economic status. While the attorney cost for chapter 7 bankruptcy can be your most expensive cost, the other fees are minimal compared to the debt you will be relieved from.