The cost of filing Chapter 7 bankruptcy might extend beyond your attorney’s fees. But not filing might cost you more.
Debt is a lot like an avalanche. It picks up more volume and gets more destructive the longer it is left to its own devices. That being said, one way to deal with debt is to file for Chapter 7 bankruptcy. Many wonder what the cost to file bankruptcy is, but that is a loaded question. We’ll look at costs and other factors in today’s blog.
How Much Does It Cost to File Bankruptcy Chapter 7?
There are many Chapters in the bankruptcy code, and Chapter 7 is one of the more well-known. It is often referred to as liquidation bankruptcy as the process involves liquidating or selling assets you own to pay down debts, with the remainder being discharged. The Mitten Law Firm charges a flat $1,499 for an individual Chapter 7 bankruptcy.
Other circumstances, such as filing when married or if you are closing down a business can impact the cost of a Chapter 7 bankruptcy. Much like anything in life, you get what you pay for when it comes to bankruptcy filings. A skilled downriver bankruptcy attorney will cost more than some, but many firms, including The Mitten Law Firm, work to keep the cost of filing Chapter 7 affordable by offering payment plans.
Are There ‘Hidden’ Costs To Filing Chapter 7 Bankruptcy?
There should never be any surprises when filing for Chapter 7 bankruptcy, and this includes the cost. At reputable downriver law firms, costs are explained and detailed upfront in order for you to make the right decision when it comes to filing bankruptcy. You can see the cost to file Chapter 7 bankruptcy as well as the process detailed in full on an attorney’s website.
Some people are taken aback that they have to pay to take credit counseling, but your downriver Chapter 7 bankruptcy attorney will explain this process and walk you through the steps to do so. Filing fees can often be waived due to income factors, and your local bankruptcy attorney can help obtain a fee waiver as well.
What Are The Costs of NOT Filing Chapter 7 Bankruptcy?
The real cost of Chapter 7 bankruptcy can be in not filing when you should. As you carry debt, interest and fees will accrue on the debt, making it more expensive to hold. You will be responsible for paying the debt in full, and some interest rates are very high on credit card debt.
Additionally, there is an emotional cost to debt. The harassing phone calls and letters, the feeling of hopelessness and despair, all of this can weigh on a person and often leads to situational depression. It can impact relationships with loved ones, and is generally a negative experience for all parties, except for your creditors.
When you file Chapter 7 bankruptcy, the phone calls stop. The letters stop coming. You can breathe easy knowing that all collection activities must cease as you go through the process. Part of your answer to how much it costs to file Chapter 7 bankruptcy should always be what your peace of mind is worth.