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Be Aware: Your Biggest Bankruptcy Costs In Court

Bankruptcy costs can affect not only your personal finances, but it can also affect the economy

as whole. If many would opt to file for bankruptcy at the same time, then the effects can be felt

within three months or more. You might not want to focus on the big picture yet. So, lets settle

on you first. What exactly do you have to spend on and how much should you shell out for

bankruptcy?

The most expensive of bankruptcy classes can $50 for each class. You are required by law to

take either the pre-bankruptcy filing credit counseling or pre-discharge bankruptcy education.

Aside from the emotional stress and time spent on handling bankruptcies, you have to prepare

for the some expenses that you cannot ignore or dispense with.

How Much Will the Bankruptcy Court Ask From Me?

Each bankruptcy chapter has different filing fees that the petitioner has to spend. Chapter 7requires that you pay to the courts:

$306 = $245 case filing fee + a $46 miscellaneous administrative fee + a $15 trusteesurcharge in case of Chapter 7 (liquidation or straight bankruptcy)

$1,046 = $1,000 case filing fee + a $46 miscellaneous administrative fee in case ofChapter 11 (reorganization bankruptcy)

$246 = $200 case filing fee + a $46 miscellaneous administrative fee in case of Chapter12 (family fisherman or farmer bankruptcy)

$281 = $235 case filing fee + a $46 miscellaneous administrative fee in case of Chapter13 (wage earners bankruptcy)

When you go to court, be sure that the bankruptcy chapter is the correct and the right one.

Conversion from one chapter to another may require additional bankruptcy costs. Changing

your Chapter 13 case to a Chapter 7 can cost about $15. This is due to your failure to comply

with the repayment plan. However, changing your Chapter 13 to a Chapter 7 is free.

If you want your Chapter 13 reopened, you need to pay $150. If it is a Chapter 7, the fee is

$220. If you need to add a creditor in or amend your petition, pay another $26. Married couples

who want to split their case would require $220 for Chapter 7 or $150 for Chapter 13.

When the court finds that your property is basically worthless to your creditors, then you can

abandon the property for $150. When you withdraw your case from the bankruptcy court

because there are other issues that need to be addressed but the court cannot exercise

jurisdiction over such issues, you need to pay $150 to do so.

How Much Can My Lawyer Demand As Fees?

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If your attorney is not taking you as a pro bono client, then you might have to pay him or her

$600 to $3,500 as added bankruptcy costs depending on the bankruptcy chapter you are filing.

It also depends on the degree of difficulty of the case. Chapter 7 can command the $600

attorneys fee price tag or higher. Chapter 13 will command a higher $1,500 to $3,500. The

most complicated would be Chapter 11, so you might expect an expensive fee for that.

Check your local courts as to the exact limits of attorneys fees since it differs from state to

state and from court to court. The limits would not let you incur more bankruptcy costs than

are necessary.

The burden of these bankruptcy costs can be overwhelming. So, avoid mistakes in your

petitions to avoid more expenses. Learn more about your states law about indigent clients to

reduce your filing fees. You can still save some more if you ask lawyers who do pro bono or who

gives free legal advice.

Summary: You know that bankruptcy costs are expensive. We are putting numbers to those

expenses so you wont be caught off guard when you file you bankruptcy case.

KP: Bankruptcy costs