The Cost of Declaring Bankruptcy


Though it's apparent that declaring bankruptcy is a ticket to freedom from debt, many still think that doing so would cost them too much and would only add to their present financial difficulties. But isn't it better to completely eliminate your debts for a decent price than to have heaps of debts piling up every single day?

Filing for Chapter 7 and Chapter 13 bankruptcies would cost you $274 and $189, respectively. Now that may burn a hole in a cash-strapped individual's pocket, but when you think what you'll be getting in return, you'll see that doing so will be rewarding after all.

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If you succeed in filing Chapter 7 bankruptcy, most (if not all) your debts will immediately be wiped out. Conversely, Chapter 13 will offer you a long-term repayment plan that'll erase your debts bit by bit. Either way, declaring bankruptcy is a good choice to make if you want to live a normal, debt-free life once again.

When you consider the benefits you'll enjoy after filing bankruptcy, you may think that the fees are worth paying after all. As with most legal issues, the real costs comes in the form of the legal fees you pay your lawyer. The contemporary bankruptcy law alterations made things more complex, resulting in more work to be done by lawyers.

How are you going to be able to pay legal fees, which can get pretty hefty? The only thing you need to remember is that the money you put into filing bankruptcy is for a good cause. Consider it the first investment you'll make towards a more financially secure future for you and yourself.

The moment you file your appeal to the court, you receive an automatic stay, which means that all payments demanded by creditors will be temporarily banned until your case is worked out. So you've basically freed up some money to pay for legal fees.

You might want to spend good money on your lawyers, because picking a cheap bankruptcy attorney who doesn't have a good reputation might just worsen your situation in the long run.


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