How much does it cost to file bankruptcy? – Some important factors

Business activities throughout an economy lead to many profits for the one who undertake these activities. However, credit facilities have often resulted in bankruptcy for many in this industry. Undoubtedly, a bankruptcy always needs to be filed. Before you file your bankruptcy case, it is important to consider various problems. Among these factors, the most important are to know how much does it cost to file bankruptcy. Filing a case is necessary to get out of all your debts.

There are various costs and charges which constitute the overall charges of filing bankruptcy. However, these accusations may vary by different factors. Filing bankruptcy cost matters as there should not be any further losses due to these. These should be nominal and well work for you as bankruptcy arrives with an excess shortage of money. Therefore these should be able to reduce it further and should not have any opposite effect.

Costs of Bankruptcy

Filing a bankruptcy will obviously require some charges. These fees are based on the current government policies, the complexities of your case and the experience of the lawyer you appoint. Apart from these under which chapter do you register your case also affects your expenditure on this. These factors will affect how much does it cost to file bankruptcy for you. Therefore to be aware of the filing bankruptcy cost let us consider some of these points:

•    Credit Counseling:  It is required to attend the 20-30 minute counseling session also referred to as “pre-bankruptcy course.” This process will, however, cost you a few dollars. But this will surely add up some amount to the overall charges. This counseling can be done either face to face or online also.

•    Credit Report Fee: You are given your credit report before the filing of bankruptcy in case you know how much you owe and to whom. Due to this there are fewer chances of misidentification or add ups to the creditors’ list. You need to pay some amount to get this credit report.

•    Court Filing Fees: When you are filing your case, you need to pay some more amounts to the bankruptcy court. This is based on what type of case you want to record. You can usually file your case under chapter7, 13, 12, and 11. The fees for each chapter vary as per the complexities involved in them.

•    Financial Management Certification Fees: Apart from credit counseling you also need to complete a financial management course as per the law. You should be able to finish this course within 45 days otherwise; your case will close without discharge.   This course will help you to manage your debts in future and will avoid such situations again.

The need for a lawyer

For completing the required procedure with no mistakes and within the required time you need a perfect professional assistance. Therefore you are obliged to hire a lawyer to handle and present your case in the court. A lawyer would help you to deal with the problem with more ease. This will also add up to the filing bankruptcy costs.

Therefore from above content, it is evident why you should consider how much does it cost to file bankruptcy.

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