Understanding the Economics of Bankruptcy Filing

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Bankruptcy filing can cause extreme stress and anxiety. The prospect of losing your assets and your financial integrity are some of the reasons why most people are wary of bankruptcies. However, filing for bankruptcy is a legal right that provides relief for individuals and businesses to overcome their debt problems. But remember that bankruptcy filing is quite expensive. This may sound ironic but the filing process requires money. So it is important to know how much to file bankruptcy and to learn how you can minimize your expenses during the entire proceedings.

If you want to know how much to file bankruptcy, then you have to understand the required filing fees that will be imposed by the courts. The legally mandated fees can not be waived. You have the obligation to pay the required fees whenever you file for bankruptcy. For Chapter 7 bankruptcies, the court will require you to pay $299 filing fee. For Chapter 13, the required filing fee is $274. You will be allowed by the courts to file the case even without an upfront payment. If you really do not have money to pay the filing fees, the court will give you enough time to fulfill your obligation after the formal filing of the case. A fee schedule or a payment plan could be made for you allowing you to pay the filing fee in separate installments.

If you really want to know how much to file bankruptcy, you should also consider the attorney’s fee. The service of an attorney is very important if you are filing for bankruptcy. There are some people who will file a case without the help of an attorney. Unfortunately, this is not the best way to get a favorable ruling from the courts. Always remember that your creditors are well represented by lawyers. So you need a competent attorney who will represent your interest. Attorney’s fees vary greatly. Some lawyers charge an upfront payment if you will retain their services. There are also lawyers who will be open for negotiations and will give a schedule of fees for their service. For Chapter 7 filing, the standard legal fees starts from $700 and could reach up to $2,000.

So it is clear that the attorney’s fee is one of your biggest concerns when you file for bankruptcy. But always remember that you will have better peace of mind if you hire a lawyer. You will also spare yourself from the hassles and troubles of bankruptcy filing if you retain an attorney. To save money on attorney’s fees, it is always best to get free consultations. You can shop around for lawyers and seek free legal advice. This is a good way of finding the best lawyer in your area. Almost all lawyers who specialize on bankruptcies provide free case assessments and consultations. So you have to get these free services to find a lawyer that offers better deals for you. Knowing how much to file bankruptcy is easy. All you need to do is to know the required filing fee and determine the professional fees of a bankruptcy lawyer.

Article Source: http://depositarticles.com/

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