How Much Does It Cost to File Bankruptcy?

As you may be aware, the requirements for filing bankruptcy changed considerably with the Bankruptcy Act of 2005. The rules are now much more stringent, and, unfortunately, the cost of bankruptcy is considerably higher. It seems unfair, indeed, that a person who is in financial straits be burdened with extra cost to find bankruptcy relief, but a Bryan bankruptcy attorney may be able to help.

Requirements for Bankruptcy

Bankruptcy used to be fairly easy. However, some individuals took advantage of the system, either intentionally or through an inability to get their spending under control. Bankruptcy is not intended for serial debtors, and is not a meant as a way of avoiding the consequences of carelessness with one's lifestyle.

That said, many people today find themselves in distress through no fault of their own. The cost of living is eroding the middle class. Healthcare costs are at an all-time high, even with the implementation of the Affordable Care Act. Indeed, among the most common reasons for bankruptcy today is medical bills that are simply beyond the means of the person to pay. The recent Great Recession placed millions in financial difficulty as well. For such individuals bankruptcy may be the best option.

The Cost of Bankruptcy

The filing fee for filing bankruptcy is set by federal law. The costs are:

• Chapter 13 debt reorganization: $310
• Chapter 7 dissolution of debt: $335

These costs are subject to change. In addition, each filer must complete two credit counseling classes, the cost of which is $200 to $300 for both. It is worth noting that if a filer finds it difficult to pay the entire filing fee at once, he may request the bankruptcy judge to defer payments over several months.

If you hire an attorney to help you with your bankruptcy, this will cost you an additional amount of money. However, bankruptcy today is very complex, and any mistake or failure to meet deadlines can be quite costly. Therefore, it may well be in your best interests in the long run to hire legal representation to ensure that everything is in order from the outset.

If You Are Planning on Filing Bankruptcy

As suggested, a Bryan bankruptcy lawyer can help you avoid making costly mistakes, and even losing your bankruptcy petition. If you are considering bankruptcy as an option, call Peterson Law Group today at 979-703-7014.