Bankruptcy Costs

Bankruptcy Costs

Due to extreme financial burdens caused by any number of reasons, an individual may consider filing for bankruptcy. There are numerous fees that can be expected for this action and persons should be aware of what they are. These fees are the direct bankruptcy cost.

Depending on what part of the country an individual resides, bankruptcy attorney cost can range from $600 to $3500. Credit counseling is mandated by the court and will cost around $100. Counseling can be done by phone, in person, or on the Internet.

The social cost of fraud and bankruptcy has caused the Deficit Reduction Act, which has increased court costs. Bankruptcy court costs can now range from $1500 to $3500. A petition to file for bankruptcy will be $299 for a Chapter 7, to $274 for a Chapter 13. This money goes toward filing, administrative, and case trustee fees.

Amendments to a case involving bankruptcy would cost $26 each. This would occur if a debtor or creditor had to be added at a later date. Reopening a case involving bankruptcy would cost $220 for a Chapter 7 and $150 for a Chapter 13.

A typical bankruptcy cost to convert a Chapter 13 to a Chapter 7 is $15. This may happen if the client is found not able to make payments on the debt. A 6 month salary analysis is necessary before a determination can be made. Splitting a case because one marriage partner may not be responsible for debt incurred will cost $220 for a Chapter 7 and $150 for a Chapter 13.

Indirect bankruptcy cost will be faced when an individual later attempts to get a loan, or a new job. Creditors will look at a bankruptcy as a bad risk. Potential employers may see it as irresponsible. An individual must weigh all the factors in what a bankruptcy would cost them before making a decision.