Are you considering filing for bankruptcy, but aren’t sure what it means in terms of your out of pocket expenses? If so then you’re not alone, as many borrowers are concerned not only with the actual bankruptcy fees, but also in terms of what costs are absolutely necessary. The fact is that there are some fees that are required by law and others that are completely voluntary and based on your need for legal representation. The following article will review both types of fees to provide you with the information you need to make the right decision for yourself about the personal bankruptcy process.
If you were to ask the average person on the street about the monetary costs of claiming bankruptcy, most would probably assume that the filing process is free. Perhaps they think that filling out a few forms is all that’s needed to get the process underway. Unfortunately, this simply isn’t the case. In fact, you will be required to pay a flat fee to the US Bankruptcy Courts for your filing, which will amount to $299 for a Chapter 7 filing and $274 for Chapter 13. While these fees might not seem excessive on the surface, keep in mind that they do not include any costs associated with legal representation or document preparation. Such fees are considered voluntary, since you are not legally required to hire an attorney for your case.
Should you decide to hire an attorney to represent your case, you should expect to pay between $1,000 and $2,000 for your case. Hiring an attorney comes with several advantages, though perhaps the most notable is that attorneys can save you a great deal of time and frustration by taking on the task of document preparation. In addition, a bankruptcy attorney can also provide you with legal advice and can also represent you in court as necessary. Apart from hiring a full-fledged attorney, you can save a bit of money and hire a bankruptcy petition preparer (BPP) who will prepare all of the necessary documents. While a BPP cannot offer you legal advice or representation, they can save you an immense amount of time and will cost about 50% less than an attorney.
