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Q: How much does filing for Bankruptcy cost?
A: Fees involved in a Chapter 7 bankruptcy include a filing fee of $245, an administrative or miscellaneous fee of $39, and a trustee surcharge of $15. This totals $299. For Chapter 13, the filing fee is $235 and the administrative fee is $39, for a total of $274. Chapter 11 bankruptcy, a type exclusively available to businesses, costs $1,000. These costs are periodically changed to adjust for inflation; the current rates were last adjusted in April 2006.
Monetary costs aren’t the only factors affecting the costs of bankruptcy. One also has to consider how much debt will be discharged and how much will still have to be paid in full. There are also attorney’s fees, which generally range from $1,000 to $3,000 depending on the state and the specifics of the debtor’s case. Bankruptcy fees can be paid in up to four installments, or sometimes even waived if the debtor can prove he or she cannot afford them. Under Chapter 13 bankruptcy, debtors may also be allowed to add them to the repayment plan.
Recently Asked Questions
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Q: When will I be discharged From bankruptcy? A: A debt is discharged in a bankruptcy when the creditor agrees to write it off or consider it paid, leaving you with no obligations on it. When you've reached an agreement with all creditors, whether it’s to discharge the debt or settle it some other way, you can exit bankruptcy. Not all debts can be discharged in a bankruptcy; some, such as car loans and home mortgages, still have to be paid in full. Child support, court judgments, and debts acquired through fraud are also non-dischargeable. In Chapter 7 bankruptcy, one can get discharged as soon as non-exempt assets are sold and the proceeds are appropriately distributed among creditors. After the 341 meeting, a 60-day period begins during which creditors can contest the bankruptcy. Otherwise, you will receive your discharge a few days after the period has passed. This usually totals three to five months from filing. Under Chapter 13, you only get discharged once you make all the payments in the three- to five-year repayment plan. In both cases, you will also have to complete a debtor education course with a court-approved organization prior to getting your official discharge. |
Posted By Mark Jan 10th, 2011 03:26:31 AM |
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Q: Can you file for bankruptcy without a lawyer? A: There are no laws requiring the help of a lawyer in a bankruptcy case, so technically, you can represent yourself in a bankruptcy. However, you need a thorough knowledge of the Bankruptcy Code and good negotiation skills to get ideal results out of a bankruptcy filing. Otherwise, it's too easy for your creditors to take advantage of you, or for you to make innocent mistakes that can otherwise get the case dismissed - or at least cost you more than what you would have paid a bankruptcy lawyer.For one thing, a bankruptcy lawyer can help explain the laws better and help you make more educated decisions about your case. They can help you figure out which assets to exempt under Chapter 7 or how to create a repayment plan for Chapter 13. If a creditor makes a proposal, they'll also help you decide whether or not it’s a fair deal. Even after you’re discharged, a bankruptcy lawyer can help by giving you tips on staying on track or referring you to financial advisers who can help you bring your credit back up. |
Posted By Kelly Jan 4th, 2011 04:33:33 AM |
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Q: How much does filing for Bankruptcy cost? A: Fees involved in a Chapter 7 bankruptcy include a filing fee of $245, an administrative or miscellaneous fee of $39, and a trustee surcharge of $15. This totals $299. For Chapter 13, the filing fee is $235 and the administrative fee is $39, for a total of $274. Chapter 11 bankruptcy, a type exclusively available to businesses, costs $1,000. These costs are periodically changed to adjust for inflation; the current rates were last adjusted in April 2006.Monetary costs aren’t the only factors affecting the costs of bankruptcy. One also has to consider how much debt will be discharged and how much will still have to be paid in full. There are also attorney’s fees, which generally range from $1,000 to $3,000 depending on the state and the specifics of the debtor’s case. Bankruptcy fees can be paid in up to four installments, or sometimes even waived if the debtor can prove he or she cannot afford them. Under Chapter 13 bankruptcy, debtors may also be allowed to add them to the repayment plan. |
Posted By Jon Dec 23rd, 2010 07:24:12 AM |
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Q: Will I lose my car if I file for Bankruptcy? A: Under Chapter 7 bankruptcy, which involves putting your assets up for liquidation to pay off your debts, you stand to lose some of your properties in exchange for your discharge. That means you can lose personal belongings, including your car. However, Chapter 7 rules allow you to exempt some properties from the bankruptcy estate, or the total of all assets that can be sold off. The rules vary by state - some allow you to exempt your primary vehicle, while others will allow exemptions up to a certain value. The types of vehicles that can be exempted can also vary.If a car being used as collateral for a debt doesn't qualify for any of the state exemptions, the debtor can choose to reaffirm that debt. This means paying off the debt even though it would be discharged, so that you get to keep the property. Reaffirming lets you keep making payments and gives the creditor back the right to seize the vehicle if you default. |
Posted By Wystan Dec 22nd, 2010 05:59:38 AM |
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Q: Can you file for bankruptcy more than once? A: Technically, there's no limit to how many times a person can file for bankruptcy. However, debts can only be discharged under bankruptcy at certain intervals. This is mainly to keep people from abusing the rules and filing bankruptcy to get rid of debts when they're perfectly capable of paying. One can get a debt discharged under Chapter 7 bankruptcy only once every eight years, and under Chapter 13 every six years. The waiting period begins after the case was filed, regardless of how long it took to get the discharge.The current rules were set in 2005, when bankruptcy law was overhauled to control creditor abuse and abusive filings. For instance, if a bankruptcy case was pending but dismissed in the past year, the automatic stay only lasts 30 days, instead of the entire duration of the bankruptcy. If two or more such cases were pending and dismissed, the stay does not get imposed at all. |
Posted By William Dec 21st, 2010 05:28:28 AM |
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Q: Can I Lose My House if I File for Bankruptcy? A: Losing property is only a considerable risk in Chapter 7 bankruptcy, also known as liquidation or straight bankruptcy. Under Chapter 7, you agree to have some of your properties liquidated or sold off, and use the proceeds to pay your creditors in order of priority. In most states, your primary home can be protected from liquidation, as is your car, work equipment, and medical aids. However, second homes and vacation homes may not always be exempted, and debts using any of your property as collateral may still have to be paid in full.The other type of bankruptcy is Chapter 13, which involves paying your creditors under a repayment plan. While you're on the plan, all your properties, including your home, are safe from your creditors. However, if you have a mortgage on your home, you still have to pay it in full-the debt cannot be included in the repayment plan. You can, however, include past-due payments and penalties to cure the default and avoid foreclosure. |
Posted By Wystan Dec 20th, 2010 05:08:06 AM |
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Q: My husband has his own small locksmith mobile business but has no other properties. He has more or less $14,000 credit card debts. Is it practical and will he qualify for any bankruptcy programs? A: Yes, your husband would qualify for bankruptcy. That is practical or not to file bankruptcy for a $14,000 debt depends on your financial situation. How much income you are getting, and how much you are struggling managing your living expenses. |
Posted By bea cook Aug 27th, 2010 07:49:24 PM |
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