How Much Does Bankruptcy Cost?
With the global economy under threat, courtesy of wars and pandemics, many people continue to succumb to financial hurdles, causing long-term hardships. Therefore, many are left with no choice but to file for bankruptcy. Like any other lawsuit, you will incur expenses when filing for bankruptcy. This cost will depend on the chapter and the attorney services you seek. We at Hilltop Law Firm will help you understand the range of bankruptcy fees depending on your state after a detailed consultation.
What Are the Different Costs Associated with Bankruptcy?
Filing for bankruptcy in the US requires you to file paperwork in bankruptcy court. You will incur two main costs when filing the chapter 7 bankruptcy. These include the attorney fees and the filing fees. With financial pressure leading to your bankruptcy declaration, it may be prudent to rely on Chapter 7 to cancel most of your debts. The filing fees for chapter 7 and chapter 13 bankruptcy are $338 and $313, respectively.
In chapter 13, you work with one of our attorneys to make a payment plan to eradicate your debt gradually. You will pay your creditors reasonable amounts over time. With Chapter 13 planning, debtors generally end up paying their creditors less than the full amount of their debts.
The other costs associated with filing bankruptcy include the fees for credit reports and credit counseling courses. At Hilltop Law Firm, these costs are rolled into your overall attorney’s fees, so that there are no hidden costs.
Does Inflation Affect the Bankruptcy Cost?
COVID-19, among other worldly issues, has impacted livelihoods. The global economy responds with rising inflation and knowing whether inflation can affect the bankruptcy cost is vital before filing one.
As of 2020, the chapter 7 filing fee increased from $335 to $338, and chapter 13 increased from $310 to $313. With this slight change at the peak of inflation, the filing fee should not affect your decision. However, there may be relevant inflation in the attorney fee as the attorneys need to pay more to their employees and meet their personal needs as they live in cities that are affected by increased living costs.
Some attorneys will charge higher than others and understanding the benefit from the extra cost is necessary. Hence, check the chapter, your case complexity, location, attorney connection, and expertise before payment.
What Are the Pros of Filing for Bankruptcy?
If you are drowning in debts, filing for bankruptcy will give you much-needed relief. The benefits you will enjoy are an automatic stay protecting you from creditors’ actions. The bankruptcy filing will also prevent legal action against you due to non-payment of your debt. Through a bankruptcy filing, you will likely be able to keep some of your assets, deal with back taxes at least three years old, keep your home, and discharge your unsecured debts.
How Can a Lawyer Help You Through These Processes?
The bankruptcy cost depends on the city you live in and the type of bankruptcy. Seeking the services of an attorney will help you settle on the chapter. Our team will use the means test to check your eligibility for Chapter 7. This test compares your total household income to the median income for a similar-sized house. You qualify for chapter 7 if you make less. Failing the Arizona mean test indicates you are better off than most folks and do not need to file for bankruptcy. A chapter 13 bankruptcy case may be feasible, and you can reach out to us for further guidance.
Our dedicated team will ensure you get a solution for your debts and get back on your feet. Contact Hilltop Law Firm today at (602) 466-9631 and schedule your bankruptcy filing appointment.