Costs Of Filing A Chapter 13 Bankruptcy
When you file for chapter 13 bankruptcy, it is important to take the costs of your entire chapter 13 bankruptcy into account. As strange as it may seem when you are looking for debt relief, it will still cost you money in order to navigate your chapter 13 bankruptcy successfully. The first costs you will encounter are the costs of the mandatory credit counseling that you must always take in order for the court to accept your chapter 13 bankruptcy petition.
These costs aren't high, and the entire credit counseling can usually be taken for under $100. In addition to this, you will always have to pay the court filing fee. For a chapter 13 bankruptcy filing, this amounts to $185. This amount does not have to be paid in order to get your case filed, but you are required to pay the fee within a reasonable time period after filing your chapter 13 bankruptcy.
It’s good to know that you can request that a payment plan be set up for the fee. The highest costs you are likely to encounter when filing chapter 13 bankruptcy are the fees for your chapter 13 bankruptcy lawyer. In most cases, your bankruptcy lawyer is going to require he be paid up front.
The amount a bankruptcy lawyer charges can vary widely, depending on their reputation, resources, firm and the type of cases they accept. It is generally accepted that a renowned lawyer will charge more to represent a client in a chapter 13 bankruptcy than a lawyer who is inexperienced or a less senior lawyer.
In most cases, consumers who are filing bankruptcy will reserve the money to pay their lawyer’s fee before they take any further action, even if it is at the expense of the money that could otherwise be used to pay creditors. However, it is a wide investment to spend that money on a good lawyer who will represent you well in your chapter 13 bankruptcy, rather than pay off a debt that will be either restructured or discharged in your chapter 13 bankruptcy case.
You may incur other expenses such as the costs of a certified accountant, to help you prepare the financial documents that your petition requires. No matter what, when filing chapter 13 bankruptcy, it is imperative you reserve enough funds to pay your lawyer’s bills, the credit counseling fee and the court filing fee.
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