What Is The Cost Of a Chapter 7 Bankruptcy?

Deciding to file a Chapter 7 bankruptcy is never an easy decision to make.  Often pondering the possibilities of which chapter of the bankruptcy code you should follow is often harder than you could ever imagine. You may also be concerned about the cost of bankruptcy. If you have settled upon filing a Chapter 7 bankruptcy as being the best bet for your situation, then there are a few things that you should know.

Cost of Chapter 7

Anytime that you file a bankruptcy there will be a series of fees involved.  It is best to know sooner about those fees than later.  If you decide to retain an attorney, most of the bankruptcy court filing fees will be absorbed in the retainer that you give to the attorney, otherwise below are a few examples of what you can expect to pay for bankruptcy. 

• First off you should decide whether or not you will use an online preparation service or if you are going to file everything manually with the courts.  It is important to know that all fees depend on which state that you live in.  But a general ballpark figure for a Chapter 7 bankruptcy can run you anywhere from $40 to $160 and that is just to get the forms to fill out and submit on your own.
• There are two other options involved, one is purchasing bankruptcy filing software that are quite similar to the programs used by lawyers and the other option is to actually hire a bankruptcy attorney.  If you opt for the former of the two (using bankruptcy software) you can expect to drop anywhere from $50 to $1000 plus for the software alone.
• Then of course, if you decide to hire an attorney to do it all for you, then you can expect to pay at the very least anywhere from $800 and up.  The good thing with this that if you hire an attorney, you will already be armed with a person whose expertise is in bankruptcy law who can better assist you in making the right decisions.

The Process for Filing

The process for filing a Chapter 7 bankruptcy is relatively simple:

• You need to get all of the information possible on your complete debt.
•  You should also have all the information on your income, your properties and your expenses.
•  Once you have that you can fill out the required bankruptcy paperwork. 
• Then you need to file your paperwork at the courthouse and pay any associated fees.  At this point an automatic stay goes into effect where all of the creditors must stop contacting you. 
• Somewhere around the 30 day mark you will be notified of when you need to attend a 341 meeting at the court where you will need to show what you can or cannot pay, and then the courts will accept your petition for bankruptcy. 
• Around 90 days later you will receive your official letter of discharge from the courts.

Getting Help

Working with an experienced bankruptcy attorney can help you to ensure your bankruptcy goes smoothly. Your attorney can answer any questions about the bankruptcy cost or other aspects of filing, and can act as your advocate throughout the legal proceedings.