Online Bankruptcy Filing Costs
Online bankruptcy filing costs poses the ultimate catch-22 situation: You are low on cash but you need to pay for a bankruptcy filing. Between the costs of hiring an experienced bankruptcy attorney to paying the filing fees, a bankruptcy case can be rather costly.
Online Bankruptcy Filing Costs: Chapter 7 and Chapter 13
When you file bankruptcy, there are two major costs involved: the court filing fees and the legal fees that you will pay an attorney who prepares your petition, walks you through the means test and provides legal counsel at your 341 creditors meeting. Among the several types of bankruptcy chapters available, the most common are a Chapter 7 and a Chapter 13. A Chapter 7 bankruptcy is one in which debts are forgiven, and a Chapter 13 bankruptcy allows you to pay back all or a portion of your debt over time.
The court filing fees are set by the Court and is $335.00 for a Chapter 7 and $310.00 for a Chapter 13. Attorney’s fees, on the other hand, vary depending on the complexity of your case. Expect to pay anywhere from $500.00 to $3,500 for a Chapter 7, and $1,500 to $6,000 for a Chapter 13. Most bankruptcy attorneys offer payment plans, but it is important to note that your case will not be filed until you have paid in full.
In the case of a Chapter 13 bankruptcy, unless your attorney’s fees fall within the “no look fee” parameter, the Court will review the fees charged to ensure that it is reasonable. What is deemed reasonable varies from district to district, so be sure to check with your local court prior to hiring a bankruptcy attorney.
Online Bankruptcy Filing Costs: How To Pay
Online bankruptcy filing costs include the court filing fee, as well as the attorney’s fees. In the case of a Chapter 7, your fees have to be paid in full. If you are filing a Chapter 13, your legal fees are included into your payment plan, however you may be required to pay as much as 50% of the fees upfront. If you are unable to afford these costs, you can:
- Work out a payment plan with your bankruptcy attorney pre-filing.
- Raise the money.
- Find an attorney who will file your case pro bono.
Online Bankruptcy Filing Costs: Working out a payment plan
One of the ways in which you can cover your online bankruptcy filing costs is by hiring an attorney who will work out a payment plan based on what you can afford. Be sure to ask your attorney about payment options during your initial consultation. These may vary from lawyer to lawyer, however common plans last between three to six months. Even while you are making the payments, you will receive some relief. After officially hiring a bankruptcy lawyer, he or she will field calls from your creditors eliminating a substantial amount of stress. While setting up your payment plan, inquire about how much of a deposit you need to make for your lawyer to handle the calls from your creditors.
Online Bankruptcy Filing Costs: Raise the Money
Online bankruptcy filing costs can also be paid if you create a budget and stick to it. Minimize your out going cash. Experts recommend stop paying your credit cards and put that same money towards filing bankruptcy. Unsecured debts, such as credit card debt are eliminated by a Chapter 7 bankruptcy, so it doesn’t make any sense to continue making payments on them. It may also be helpful if you try to earn some extra cash by getting a part-time job. If this is not an option, friends and family may also be able to help.
Online Bankruptcy Filing Costs: Go Pro Bono
If your income is less than 150% of the poverty line for your family size and you are unable to afford a payment plan, you may qualify for free legal services or waived fees.
Online Bankruptcy Filing Costs: The ZocLaw.com Way
At ZocLaw.com, our experienced attorneys understand the financial stress you are going through. We will tailor a payment plan to suit your specific situation and be by your side every step of the way. Schedule your free initial consultation today!