Are you worried about how to pay for bankruptcy in order to get out of debt? Well, first of all you need to make sure that you have chosen bankruptcy after careful consideration and not simply out of panic. Talk things over with your family and a bankruptcy lawyer before you make the final decision. Still, once you have done that, you are left with the matter of having to pay for all of this.
The current cost for chapter seven bankruptcy is $274, and the chapter 13 bankruptcy is slightly less expensive at $189. What’s the difference between these two bankruptcies? Chapter seven is what most people think about because it tries to discharge your debt completely. Chapter 13, on the other hand, does not actually eliminate your debt. Instead, it creates a payment plan for you to use over the next 3 to 5 years in order to catch up on your payments.
This may or may not seem like a large amount to pay. On the one hand, you’re getting a chance to get on top of your debt and get some breathing room, so to speak. Still, if you’ve come this far in your financial journey, then you probably don’t have much money to speak of. This can make it quite difficult to cover the costs of a bankruptcy case.
When it comes to paying for your bankruptcy proceedings, the problem may not lie so much with the court fees. After all, the main fees you’ll have to worry about are your lawyer fees.
As we all know, legal fees can be expensive, and the recent changes in the bankruptcy code have made things more complex. This may mean more work for your attorneys, which can translate into a higher cost for you.
This may be discouraging for you, and you may think that you will not be able to pay for the bankruptcy process. At this point you might be wondering how to get out of credit card debt (or other kinds of debt for that matter) through some other means. However, if you and your lawyer have decided the bankruptcy is the best option for you, you shouldn’t despair over the cost.
When you first declare bankruptcy, the court will temporarily stop all collections from taking place. Until your case is settled, bill collectors are not allowed to contact you.
If your case is successful, then your debts may be wiped out for good. This will make it much more feasible for you to pay your lawyer since you won’t have to worry about your previous monthly bills anymore.
Related posts:
- A Chapter 13 Bankruptcy Attorney Will Help An Individual With The Filing Plan
- Knowing How Much Is The Real Cost Of Bankruptcy
- A Chapter 13 Bankruptcy Attorney Will Assist An Individual With The Filing Process
- Beware Of Hidden Fees When Filing For Bankruptcy
- What are the real drawbacks of filing bankruptcy?
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