Filing For Bankruptcy Cost

Filing for bankruptcy entails a lot of expenses. One has to pay for an attorney's services and pay for the filing of the bankruptcy. Filing for bankruptcy cost depends on the chapter of bankruptcy one files for. There are three types of Bankruptcy chapters that one can file. These are the Chapter 7 Bankruptcy, the Chapter 11 Bankruptcy and the Chapter 13 bankruptcy.

The type of bankruptcy depends on the size of the business and the situation. Most individual business owners use the Chapter 13 bankruptcy because the owner can still keep his assets but will have to pay for the balances in a 3 to 5 year repayment plan. And some of the debts may be discharged depending on the amount of debt.

On the other hand, the least filed type of bankruptcy is the Chapter 11 bankruptcy. This is one of the most complex type and also the most expensive type. Most businesses involved in this type of bankruptcy are major corporations and big companies that are having problems on their finances. They are still allowed to go on operation and maintains ownership of all assets provided that they work out on a payment scheme for all the debts.

The cost for filing for bankruptcy varies. In Chapter 7 bankruptcy, the filing cost will be $175 and the attorney fees are much cheaper. For Chapter 13 bankruptcy, the filing cost will be at $ 165. The last type and the most expensive of all - the Chapter 11 bankruptcy can be filed at a whooping amount of $800 and up.

Therefore, when an individual decides to file for bankruptcy, he or she must be aware of the cost to file for bankruptcy. The filing fees are much lower compared to the attorney fees. If an individual that is totally broke will file for bankruptcy, he or she will be further burdened with the attorney fees which will charge high service fees according to the type of case, number of hours for the total case process, etc.

In order to get a low cost bankruptcy filing, one will have to find a lawyer that offers free or cheap services. There are attorneys that have free service fees especially if they are interested with the type of case. One just have to be careful in choosing lawyers that have low rates because chances are, they will have poor performance on court and the individual filing for bankruptcy will end up losing the case.

Before filing for bankruptcy, it is advised that the individual must save up for the cost for filing bankruptcy. If they see that they are bound to file for bankruptcy, they must halt paying for the charges. They must rather save their money to pay for the expenses in filing for bankruptcy.

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