There are two different kinds of bankruptcy filed by individuals for personal debts. Chapter 7 and Chapter 13 are the types that are most commonly used by individuals. Each has its advantages and disadvantages, as well as varying costs.
The biggest difference between Chapter 13 and Chapter 7 is that Chapter 13 does not dismiss debts but instead reorganizes them. As such, the cost of filing Chapter 13 is different simply because of the work that may be involved and the fact that it is not necessary to sell off assets.
Lawyer Fees in Chapter 13
Lawyer fees for Chapter 13 are going to vary based on the details of the case. The best way to find out how much it would cost for your particular situation is to make an appointment with an experienced Chapter 13 bankruptcy lawyer so that we can examine your debts and the details of your case.
You can expect to pay the fees upfront in most bankruptcies due to the nature of the case, but you may be able to set up an affordable payment arrangement. However, there are fees involved other than lawyer fees. Chapter 13 bankruptcies involves filing fees and other costs that you may also need to consider.
Talk with your lawyer to find out how we can help you manage these expenses in your bankruptcy. For more information about Chapter 13, click here.
Repayment of Your Debts in Chapter 13
Since Chapter 13 reorganizes your debt, the cost of repayment is completely based on the amounts you owe. Someone who has $50,000 in debt is likely to pay less than someone who has $100,000 in debt, but not always. How much you pay toward your debts depends on how much income you have as well.
The courts will allow you to keep enough of your income to maintain basic living necessities, but your lifestyle may have to undergo serious adjustment. The income used to pay your debts is your disposable income, or income that is not used for survival. Therefore, the lower your income is, the less you can expect to pay.
What Will Chapter 13 Cost Me?
Chapter 13 is different for everyone. There is no set flat fee that everyone pays. Rather, it is completely dependent on your own bills and disposable income (as the court and your lawyer calculate it).
In order to get the best understanding of the costs you can expect in your Chapter 13 case, you will need to consult our bankruptcy attorneys so we can examine the details. You may find that the benefits of a new financial future are well worth the expenses that come with filing bankruptcy.
Please share this post online with friends and family members considering Chapter 13 bankruptcy and the costs associated with filing.