The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

How Much Does it Cost to File for Bankruptcy Protection?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 3 mins read
cost to file for bankruptcy AskTheMoneyCoach.com
11
SHARES
185
VIEWS
Share on FacebookShare on Twitter

 Approximately 1.2 million Americans filed for bankruptcy in 2012 and more than 1 million more individuals are expected to go bankrupt in 2013.

Continued layoffs, foreclosures, rising healthcare costs and mounting credit-card debts are all still taking a toll on many people.

If you’ve thought about filing for Chapter 7 or Chapter 13 bankruptcy as a last resort for managing your financial problems, make sure you’re aware of all the costs of going through personal bankruptcy.

Court costs and attorney fees can add up, and you’ll need to be financially prepared to manage these costs within a reasonable time after the filing process is complete.

Here’s what you need to know about the costs of bankruptcy:

Typical Costs Associated with Filing Bankruptcy

Many people don’t realize what the total costs of filing for bankruptcy will be when they decide to declare bankruptcy.

But filing for bankruptcy is never free – even if you handle the filing yourself — and going through Chapter 7 or Chapter 13 may involve a significant investment of time and money.

You’ll also need to spend a good amount of time gathering paperwork, finding a reputable attorney, and going through mandatory credit counseling.

Some of the different types of costs involved with filing bankruptcy include:

 

Credit report orders – if you’ve already obtained your free credit report for the year but need a more updated version to check after your filing, you’ll have to pay for additional copies.

This is a small, but extra expense that many people forget about when they decide to file for bankruptcy.

Total Cost: $10 to $20.

Credit counseling fees – you will need to undergo credit counseling and provide proof of completing the credit-counseling program before you can file for bankruptcy.

Completing the program typically takes 60 to 90 minutes and may require taking some time off work or out of your busy schedule, and you will be responsible for paying all fees associated with the service.

The good news is that you can do credit counseling online, over the phone or in person, so you have some flexibility in arranging this requirement. Also, you may be able to ask for a waiver of the credit-counseling fee if you simply can’t afford it.

Total Cost: About $50.

Bankruptcy attorney fees – attorney fees will vary based on numerous factors, including the type of bankruptcy you choose (chapter 7 or 13), the complexity of your case, the attorney or law firm you work with, and what part of the country you live in and file for bankruptcy.

Legal fees for Chapter 13 cases are often higher than those for Chapter 7 cases. That’s because a Chapter 13 is a reorganization plan that lasts for 3 to 5 years, so presumably these require more work from an attorney. Fortunately, with Chapter 13 filings, a lawyer’s fees can be wrapped into the cost of your overall bankruptcy repayment plan, so you may not have to come up with all the money at once to pay a lawyer.

Another important point: Lawyers in the Midwest and South, for example, are typically cheaper than attorneys in on East and West coasts. Still, when you’re broke and going through bankruptcy, it might feel like any legal feels are costly. But it’s worth it to get professional help.

Total Cost: Anywhere from $750 to $4,000.

Filing fees – when your case is prepared for a bankruptcy court review, you’ll need to pay filing fees that are determined by your local court. This filing fee varies from state to state.

Total Cost: Typically about $200 to $400.

Miscellaneous costs – some other costs that are easy to overlook throughout the bankruptcy filing process include printing, mailing and photocopying of all paperwork needed for your case. Your attorney can do some of this, and include it in their fee, or you can handle it.

Total Cost: Roughly $25 to $50

You would also need to factor in travel time, time off work and any extra fees involved with requesting an extension or when you need to file other documents.

Filing for bankruptcy can take its toll on your finances, and on your well-being.

For many people, going through bankruptcy is a stressful process and does involve a lot of emotional and personal time as an investment too.

Make sure you’re aware of the total costs of filing for bankruptcy before you seek out an attorney and begin the filing process.

Tags: Chapter 13Chapter 7
Previous Post

6 Simple Steps to a Better Budget

Next Post

Is a Secured Credit Card a Good Option?

Related Articles

50 cent
Bankruptcy

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach
Obama Gives Student Loan Relief to Millions with College Debt
Bankruptcy

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach
5 Things to Do Before You Go Into Foreclosure
Bankruptcy

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach.com bankruptcy
Bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy
Bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
truth bankruptcy AskTheMoneyCoach.com
Bankruptcy

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy rejected AskTheMoneyCoach.com
Bankruptcy

Avoid These Common Mistakes Or Your Bankruptcy Filing Will Be Rejected

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy fresh start AskTheMoneyCoach.com
Bankruptcy

Best Ways to Rebuild Your Life After Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach
bankruptcy rejected AskTheMoneyCoach.com
Bankruptcy

My Credit Report Still Shows Debt Written Off in Bankruptcy!

by Lynnette Khalfani-Cox, The Money Coach
Next Post
Is a Secured Credit Card a Good Option?

Is a Secured Credit Card a Good Option?

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist