It can be difficult to both explain and even understand the cost of filing Chapter 7 bankruptcy. There will generally be attorney’s fees, filing fees, and some additional costs associated with the bankruptcy proceedings. There may also be some further expenses that you will need to plan for when you file your bankruptcy. Click here for more information on Chapter 7 bankruptcies.
Fortunately, the courts do recognize that you may be working within limited financial means (or you would not be filing bankruptcy), so there may be opportunities to make payments on the fees or to work out other payment arrangements.
Although one of the biggest fears that consumers often have is attorney’s fees, we are able to help you manage these as much as possible. Lawyer fees may vary depending on the details of your case, but you can meet for a free consultation so you know what to expect. You shouldn’t avoid consulting an attorney and continuing to deal with your debt alone just because you think you won’t be able to afford the expense of filing bankruptcy.
Secured Debts and Bankruptcy
Cash is not the only way you might pay for your bankruptcy. Lenders who have secured their line of credit with you may want to get paid by either retrieving the item that was secured or confiscating any funds in the secured account. In some cases, creditors won’t bother with this since items like appliances and furniture may not hold their value over time. In such cases, they simply take the loss. However, if you have secured debt, you should plan for the possibility that you may have to return items or provide funds to pay the debt.
Costs of Unsecured Debts
If you have unsecured debts and you also have assets, you may have to forfeit some of those assets to cover a portion of your debts. Although these are not considered in the costs of filing Chapter 7 bankruptcy, they still involve a reduction in your net worth and, potentially, your cash on hand.
The courts may also take a look at your bank accounts and things like stocks and other financial considerations. You may have to forfeit these items in order to provide your creditors with some form of relief from the burden of your debts.
Consult Our Bankruptcy Attorneys for a Clear Picture
The only way to determine the exact costs and expenses you face when you file a Chapter 7 bankruptcy is to consult your lawyer. We can take a look at your current expenses and your situation and then explain any fees or expenses that will come about as part of your Chapter 7 bankruptcy. In this way, you will know what to expect and can move toward a better financial future with a little less stress and debt.