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How Much Does Filing Bankruptcy Cost?

How Much Does Filing Bankruptcy Cost?
"""How much does bankruptcy filing cost? To respond to this query, you must first specify the type of bankruptcy you are filing. Chapter 7 bankruptcy is used for personal bankruptcies. Chapter 13 bankruptcy may be necessary if you do not qualify for Chapter 7 bankruptcy.

Here is what you can anticipate to pay for a personal bankruptcy program.

Filing Fee

For Chapter 7 bankruptcy, the bankruptcy filing fees are approximately $299. This is a fixed fee established by the federal government, which is the same regardless of location. Generally, payment arrangements are possible for this charge.

Lawyer's Fees

The attorney's fees will range between $750 and $2,000. Clearly, you're filing for bankruptcy because you're in debt, so many attorneys offer payment plans to make these costs more manageable.

Now, let's discuss the """"costs"""" other than money. According to consumer affairs, the following are additional costs to consider.

You will forfeit all of your credit cards (unless you settle their balances prior to filing).

You may also need to sell some of your belongings.

When applying for a job, an apartment, or credit, you may be asked if you have ever declared bankruptcy.

A recent bankruptcy makes it virtually impossible to obtain a mortgage, although it may be possible within five years.

A bankruptcy can remain on a credit report for up to ten years, making it difficult to obtain credit, purchase a home or car, obtain life insurance, and sometimes find employment.

In bankruptcy, not all debts may be """"discharged"""". Student loans and past-due taxes (within three years) are prominent examples of non-dischargeable debts.

If you file for bankruptcy, your identity will be included in court documents and may be published in a newspaper.

You will have to explain to a judge or trustee how you put yourself into a financial mess, which can be embarrassing.

It could be quite some time before you can obtain credit cards again.

Therefore, you should examine all of your options before declaring bankruptcy. For some, it may be the only option, but for the majority, there are other debt reduction programs that have less of an impact on your credit and allow you to retain your assets and start over.""

" - https://www.affordablecebu.com/

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"How Much Does Filing Bankruptcy Cost?" was written by Mary under the Finance / Wealth category. It has been read 128 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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