Bankruptcy is something that can help you find relief from debts, but it is not free to use. There are costs associated with it, and the costs of bankruptcy often stop people from using it as they cannot afford it. If you really need help financially and are considering bankruptcy, it is important to understand the costs you may face as well as options you have for paying for your case.
The average costs
To file for bankruptcy, you might spend anywhere from $835 to well over $6,000 depending on the branch you use, your location, and the nature of your case. Chapter 13 will cost more than Chapter 7, but this is mainly because it involves more work. This is a lot of money to get relief from debt, but it is necessary to cover the court filing fees and the legal fees you will incur when you file.
Part of the costs you must pay are for the required court filing fees. Anyone who files a bankruptcy case must file the documents in bankruptcy court, and the court will also charge fees to do this. The other part of the costs you will have are for the legal fees necessary for the lawyer who assists you in your case.
Ways to pay for bankruptcy if you cannot afford it
The best way to pay for bankruptcy is to save up money until you have enough, but this is not always an option. There are other options, though, and here are some of them. One is to borrow money from someone close to you. If you can do this, you would be able to file right away and repay this person over the course of the next few months. If you file for Chapter 7, you would likely have more cash on hand after filing than you do now simply because you would have fewer debts.
Another option is to work out a payment plan with a lawyer. With this option, you would probably have to pay the full balance before the attorney filed the bankruptcy documents with the court, but at least you would have a way to work toward filing.
There is also an option that requires filing a waiver with the court asking the court to waive your bankruptcy fees. If approved, you might not have to pay the full bill for the services.
There are fees when filing for bankruptcy, but there are also options you could try using to help you pay for these fees. To find out more about Chapter 13 bankruptcy or the costs for it, talk to a bankruptcy lawyer today.