What Costs You Can Expect When You File For Bankruptcy

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“I got bills I gotta pay

So I’m gon’ work, work, work every day

 I got mouths I gotta feed

So I’m gon’ make sure everybody eats

I got bills.”

As Lunchman Lewis so clearly states in his song “Bills,” everyone has bills they need to pay. While filing for bankruptcy can help eliminate some bills, it will also create new expenses. Take a look at some costs you can expect during your bankruptcy proceedings.

Bankruptcy Costs You Will Always Need to Pay

While each bankruptcy is different, there are some costs everyone who files will need to pay. These can include:

Attorney Fees

As we mentioned above – we all have bills we need to pay, even to the attorney handling your case (or perhaps especially to the attorney handling your case). There are fees we need to charge clients to pay our staff and keep our office running. However, we understand your financial situation. We know you’re in debt, and you’re struggling to make ends meet, so we do not want to make our fees stressful. We offer flexible options to our clients to ensure our fees are not a burden. We will work out a payment plan with you.

Court Filing Fee

The court will charge you for filing for bankruptcy. This will cover the court’s  administration fees. Currently, you will need to pay $313 for a Chapter 13 bankruptcy case, and $338 for a Chapter 7 bankruptcy. These are increased every couple of years.

Mandatory Education Court Fees

When you file for bankruptcy, the court mandates that you take a course to educate yourself on the process and to help you better understand your financial situation and how to avoid falling deep into debt again in the future. This class consists of two, one-hour online courses. They cost about $42 in total through the provider we recommend.

Bankruptcy Costs You Will Always Need to Pay

In addition to the fees you will always need to pay when filing for bankruptcy, there are also costs you MIGHT have to pay, depending on your case. These can include:

Credit Report Pulling Fees

You will need to provide your full financial portfolio when filing for bankruptcy so your attorney and the court can see your total debt. You will need to present a credit report to show your current debt. If you don’t have a current report or can’t get them for free, my office may need to pull one from our commercial vendor. You would be charged for this fee.

Tax Preparation For Needed Filings

You will need to have you tax filings up to date when filing for bankruptcy. If you are behind on your filings or need assistance preparing your tax return, you may need to pay a tax preparer or certified public accountant to prepare your taxes for you if you are unable or unwilling to do so yourself.

Real Estate Appraisal

You need to present all of your assets to your bankruptcy attorney and the court when filing for Chapter 7 or Chapter 13 bankruptcy. If you own a home and do not have a current appraisal, you may need to pay to have one performed during your proceedings.

While this is a general list to help you prepare for potential costs you might face while filing for bankruptcy, in some situations there are others costs that need to be accounted for. Your attorney will let you know about the potential for other costs in your case. Each case is different, and there are unexpected expenses that might pop up. Your bankruptcy attorney can help guide you through these costs and explain why they are needed.

Let Us Help You

If you are drowning in debt and are considering filing for bankruptcy, let our lawyers at The Law Offices of Alexzander C.J. Adams, P.C. help prepare you for what to expect. We work for you, the people, and not institutions. Contact us for a free case evaluation, or no-obligation consultation. We are dedicated to helping you overcome this small bump in the road and assisting you to get on with your life.

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