Now That You’re Eligible for Filing, What’s Next?
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Now that you’ve made sure you qualify for filing for bankruptcy, consulted a local bankruptcy lawyer, and sorted through all the paperwork, you are finally ready to file for bankruptcy in your local state. A new path of being debt free is finally within your grasp, but there’s one thing left to consider: bankruptcy filing fees. Although somewhat ironic, yes, there are standard bankruptcy filing fees you must pay to file for bankruptcy. However, before you consider other options, try thinking of this filing fee as a one-time payment that can help you reshape your future.
The filing fees are typically paid to your local bankruptcy court. They do not include bankruptcy attorney fees, which are at the discretion of your lawyer. Attorney fees vary due to a number of factors, including location, the complexity of your case, the length of your case, and more.
As of November 2011, bankruptcy filing fees are as follows:
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· $306 for Chapter 7
· $281 for Chapter 13
Paying for the Chapter 7 filing fees will immediately discharge most of your unsecured debts, including credit card bills, personal loans, utility bills and medical bills. If your case is approved, most, if not all, of your unsecured debt will be erased, giving you a clean slate and a chance to rebuild your credit score for future financial endeavors. Once your debt is cleared, you are no longer responsible for the debt, and creditors cannot contact you about those debts again.
Paying for the Chapter 13 filing fee will lead a court structured and approved repayment plan that is interest free. This repayment plan will also halt any foreclosures and repossessions on your properties for a period of three to five years, allowing you to keep your homes and automobiles. The bankruptcy filing fee must be made to the clerk at the bankruptcy court upon filing for Chapter 13. After successfully filing for Chapter 13, you must make sure to follow your payment plan and pay on time, you must not incur a large amount of new debt, and you must keep current insurance on assets that act as collateral for a debt. Keep in mind that attorney fees may vary due to factors such as the length and complexity of your case.
Filing for bankruptcy may seem like a long and tedious process. The attorney fees and filing fees you must pay may seem like they are not worth it. However, keep in mind that you are paying a few hundred dollars to clear away thousands of dollars worth of debt. Filing for Ch 7 and Ch 13 bankruptcy may be the best way to get your family out of debt and start over with a clean slate.