4 tips to remember about bankruptcy cost
We often hear from potential clients the question, “What does it cost to file bankruptcy?” This depends on several factors. We can analyze your situation and give you a free quote. In the meantime, there are 4 things that you should remember about the cost of bankruptcy.
- Bankruptcy is an investment: While you may spend some money now to file, in the long run bankruptcy is a way to eliminate thousands of dollars in debt. The money spent on bankruptcy is a great investment towards your financial future.
- Court fees are mandatory: Each state has the same court fees, which vary based on the type of bankruptcy that you file. The fees are $306 for Chapter 7, $1,213 for Chapter 11, and $281 for Chapter 13. This money pays those involved with the courts, such as the trustee and others.
- Attorney fees vary based on different factors: Each attorney is required to publicly disclose their attorney fees. These will vary based on the type of bankruptcy that you file, how complex your case is, and what area you live in. The national averages will give you a good estimate. The averages are $1,250 for Chapter 7 and $3,000 for Chapter 13.
- Avoid too high and low rates: There is a sweet spot for attorney fees that makes sure that you get great service at a competitive rate. If the fee is too low, you may not get very good service or results, while if the fee is too high, you may be getting taken advantage of. Compare prices and services to make sure there are no red flags.
Learn more about our Kansas City bankruptcy attorney, Coleman Ellis