Because lawyer and filing costs are the only expenses when you want to declare bankruptcy, they are the only two things you should look at if you want to save money when going the bankruptcy route.
Chapter 7 Bankruptcy is as serious a bankruptcy there is. Once you are accepted for it your assets are sold off and most of the debt you have is eliminated. Chapter 13 Bankruptcy is a lot less serious in that all you are essentially getting is a consolidated loan with excellent interest rates, which is used to pay off everyone you owe money.
Chapter 7 and 13 Bankruptcies are not the only ones that exist. They are just the most applied for. Chapter 15 Bankruptcy, for example, involves overseas businesses.
You’ll have to pay a total of $274 ($235 and $39 for administrative expenses) if you want to file for Chapter 13 Bankruptcy and a total of $299 if you want to apply for a Chapter 7 Bankruptcy ($245 as well as $39 in administrative expenses and $15 in trustee fees).
You may not have to pay for these start up expenses if your finances are in really bad shape. If they’re really bad you can fill out a waiver, which may let you off the hook from these expenses.
Lawyer fees, which are in the range of $1,000 to $2,000, are inevitable whether you are going to declare Chapter 7 or Chapter 13 Bankruptcy. If you want to save money on lawyer fees it will help if you know your financial situation in an out so that you spend less time with your lawyer, being charged for billable hours in the process.
There are services and products out there, which say that they can substitute for lawyers. This is far from the reality. Nobody, but a lawyer, can provide you with help that may save you from serious mistakes in your bankruptcy proceedings.
Although you may not want to pay anyone anything, when you have a financial situation that requires bankruptcy, many attorneys have financing plans, which you can acquire. Also, things will get easier after bankruptcy. But you need someone with experience to actually make your case successful in the first place. That someone is a lawyer.
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Tags: affordable bankruptcy, Bankruptcy, cheap bankruptcy, Finance, low cost bankruptcy, Personal Finance, saving on bankruptcy