How much will it cost to file for Chapter 7 bankruptcy?

Every individual who is thinking to file for bankruptcy needs to get an idea about the cost. After all, bankruptcy is a bad financial phase. A filing fee needs to be paid while filing for bankruptcy. For a chapter 7 case, the fee is around $350. There might be an additional fee of $15 to $20 which needs to be paid to bankruptcy. You may request to pay the filing fees in instalments, most courts will allow it if you can show it would be a financial deprivation to pay the complete amount at once. If you file under Chapter 7 and later convert to chapter 13, you won’t have to pay any extra fee. Aside from the filing fees, you will be required to obtain credit counselling that costs in between $60 to $90, depending on where you file.

You can file without the help of an attorney but the success rate is not good. Under chapter 7, you will forgo all of your non-exempt property to the bankruptcy trustee. Bankruptcy exemptions differ by district and some are more lenient than others. The trustee will sell that property and use the takings to pay your creditors. Once this process will be over, your remaining unsecured debt is discharged, which means it is forgiven. When you file under chapter 7, you will generally have to pay up-front. Across the country, the average attorney fee for a chapter 7 case is $1200. That cost may differ notably from the market. It might be possible that you will have to pay more in a metropolitan city than in a comparatively small town. Your fees might get affected by the complications in your case. One major thing, attorney fees are public record. We now know that attorneys may charge more for complications.

In every state, low-income individuals can get free legal help. If you are filing for bankruptcy or struggling with debt, you can get free credit counselling services.