How Much Does Bankruptcy Cost In 2024?

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AVE GURNEE, Ill. - Feb. 17, 2024 - PRLog -- Imagine the scenario: you have taken a huge loan and are planning on paying it off in monthly installments. You still have 20 months of installments to go when your company decides to lay off a few employees, one of which is you. An individual's world comes crashing down when they lose their only source of income. Some people may even experience going completely broke.

Depending on your situation, a bankruptcy attorney in Katy may recommend filing for bankruptcy. The term has a negative connotation, and nobody likes to be publicly declared bankrupt. However, when life throws you into a situation where taking help from the government remains the only way, you should not let it go. Get legal counseling today to know your rights.

What does it cost to file a bankruptcy?

There are many factors on which the cost depends. These include the size, type, and complexity of the case. However, some bankruptcy fees are almost unavoidable. The federal courts that deal with bankruptcy cases charge standard fees and an administrative fee for only accepting the case. It may range from $10 to $50.

During the legal process, filers are required to pay various fees, including hiring a lawyer. However, federal courts can waive or modify some amount in cases of financial necessity. Case filers may also need to pay the attorneys or accountants. However, these fees can be avoided in some cases. For example, pro bono bankruptcy attorney in Katy (https://www.coreymillslaw.com/) and state legal aid societies may assist low-income individuals.

What are the different types of bankruptcies?

Chapters 7 and 13 are two types of bankruptcies available to individuals. Chapter 7 is about liquidation, while Chapter 13 is called a "wage earner's plan". It helps people pay off their debts in a series of monthly installments.

Other bankruptcies that apply to organizations are Chapter 11, which includes businesses; Chapter 9, which applies to municipalities; and Chapter 12, which applies to fishermen and family members.

How to pay for bankruptcy?

Paying for bankruptcy can be as difficult as getting your loan approved from a bank. For example, attorneys handling Chapter 7 bankruptcies may require an upfront fee before filing the initial petition. Some attorneys may demand you partial payment before filing the case and collect the rest after filing your petition.

However, these techniques have not stood up to legal challenges. Here are some ways to pay for bankruptcies:
  • Ask to pay in installments.
  • File for chapter 13 instead of chapter 7.
  • Contact your legal aid society.
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