Q: What is the approximate cost to file bankruptcy?
Im not certain which chapter I would need to file. Im divorced & have no assets. I have less than $20,000 debt, such as judgements from credit cards and a previous landlord, medical & miscellaneous debt. I’m also making small payments on federal student loan debt and am in good standing where that’s concerned. I filed bankruptcy once previously in 2006/2007 in the state of Michigan. I’m currently caring for my ill mother full time, therefore do not have income but have money saved for filing bankruptcy. I do plan on returning to work in early 2020 once my father retires and can take over caring for my mother & don’t want my wages to be garnished. Any information you can provide would be greatly appreciated! Thanks!
Based on the information you provided you would most likely file a Chapter 7 Bankruptcy. Assuming your last Bankruptcy was a Chapter 7 you would qualify for another Chapter 7 since its been over 8 years. One thing you need to consider is any possible inheritance. If you inherit within 6 months of filing a Chapter 7 that inheritance may become part of your Bankruptcy.
As it relates to costs - the Court filing fee for a Chapter 7 is 335 - you also need to complete a credit counseling and debtor education course. The attorneys fees charged for Chapter 7 depends on where you file and local practice.
Many attorneys charge a flat fee - plus the costs of the courses & you pay the filing fee. The average is between 899 and 1199 for a Chapter 7. Some offices charge less for low income clients. We have a 2 tier fee, for people below the Poverty Level we charge $795 the standard fee is $995 both include the required courses but not the court filing fee.
Hope that helps.
Trent Harris agrees with this answer
You have a couple costs that go into filing bankruptcy. First the court filing fee ($335) - but this can be waived if your household income from all sources is less than 150% of the federal poverty level. Second, the credit counseling course fees - these generally run in the range of $15 to $25 per course (2 mandatory courses), but sometimes these courses are included in your attorney fee. Third, the attorney fee - this can range from the mid $500 level to $2,000 or more depending on your lawyer, your location, your income, and the complexity of your case.
How to find out what bankruptcy will actually cost you? Call a bankruptcy attorney in your area to get a consult. Many bankruptcy attorneys offer free consults - take them up on it. I wouldn't suggest trying to file by yourself - bankruptcy law and procedure is complicated and people who don't know what they're doing when they file bankruptcy can create significant problems for themselves. Use the help that is available to you - good luck.
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