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The Costs of Filing for Bankruptcy

bankruptcyCosts-1Perhaps the greatest cost of filing for bankruptcy is the emotional one. Unfortunately, there are also financial costs and fees that are involved when you choose to file, and it’s important to take these into account as you may be in a situation where you’re already low on funds.

Let’s begin with the court fees.  These are the administrative costs that must be paid to the court upon filing for bankruptcy.  These fees will vary depending on whether you’re planning on filing for Chapter 7 or Chapter 13 bankruptcy. This is one step where a bankruptcy attorney can help you figure out what you’ll be required to pay and which type of bankruptcy is the most appropriate based on your unique situation.

Speaking of attorneys, there may be several fees involved depending on how complex your bankruptcy case is. These cases can range from a standard Chapter 7 case with one source of income and few assets to much larger ones that may be more expensive such as a Chapter 13 that could involve flat or hourly rates. Make sure you are aware of the attorney fees and strongly consider staying away from the cheapest option as this could be an indicator that the attorney lacks experience.  When dealing with something as sensitive as your finances, you’re going to want someone that has dealt with different bankruptcy cases in the past and will ensure that your case is resolved so you can start with a clean slate.

You will encounter other fees in addition to the ones mentioned above; you will have to pay for two credit counseling courses. Depending on your case you may have to pay for appraisals of your real estate or vehicles. If after the bankruptcy petition is filed you need make to changes or corrections the court will charge additional fees and most likely your attorney will also charge for the additional work. 

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law, insurance litigation, business start-ups, and more.  Call 305-676-7545 to speak with Miami insurance attorney and receive a free consultation.  We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.