Payday Loans and Fast Cash Guide | What is the average cost of bankruptcy?

What is the average cost of bankruptcy?

Bankruptcy attorney fees can vary based on the location( state, county) of where the bankruptcy is being filed and how complicated the bankruptcy is. You must also take into account the experience of the attorney along with the size of the firm the attorney belongs to. This is used only as a broad assessment of what will determine the cost of your bankruptcy. Larger firms may be able do it cheaper but the quality of service may suffer.

In realistic terms, filing for bankruptcy is fairly cheap; it is the cost of the attorney along with how complicated your case is that determines the total cost for filing. If you are filing a chapter 7 bankruptcy that is relatively cheap and paper work is the main load of work your case may be relatively cheap. However, if you are filing a chapter 13 bankruptcy the case becomes a little more difficult than just filling out paper work and filing it with the court.

The cost of a basic or straight forward chapter 7 only costs $299.00 to file with the court and this will stop all creditors from trying to collect as soon as you file.  A Chapter 13 costs slightly less to file even though a chapter 13 case is more complicated due to paying creditors back. In addition, to these basic court fees you are required to take bankruptcy classes prior to filing and post filing bankruptcy and these classes can cost anywhere from 30.00 per class to 50.00 per class depending on the government approved agency administering the test. These are basic costs and do not cover the full amount you are charged from attorneys providing bankruptcy assistance.  The cost of the attorney does vary from state to state.  A simple chapter 7 bankruptcy case you can expect to pay an attorney anywhere from 500.00 to 700.00 and this will not include the filing fee or the fees for classes discussed previously.

The most expensive fee comes from an attorney who is conducting a chapter 13 bankruptcy. This chapter of bankruptcy is where it pays to hire a good lawyer and paying a high price for a good chapter 13 bankruptcy attorney should not sway you since most of the attorney’s costs can be included in your chapter 13 payback plan. In addition, the difference between paying a small amount for an attorney versus a large fee can be the difference in the amount you pay back to creditors each month.

In conclusion you can expect to pay $1,000.00 in total cost for a chapter 7 bankruptcy after the filing fees, class fees and attorney fees are calculated. If filing a complicated chapter 13 bankruptcy you can expect to pay upwards to $2,000.00 or higher after all costs are included.

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