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Filing bankruptcy is an intimidating task for most people. This is especially the case if you are unsure what the costs are to file a case. To begin the bankruptcy process, you are required to pay a filing fee to the court or file an application to waive the fee or pay in installments. If you hire an attorney, there are also legal fees involved.
As you prepare to file for bankruptcy you may wonder if you can include attorney fees in your case. If you owe attorney fees for services not associated with the particular bankruptcy case you intend to pursue, these charges appropriately can be included as a debt to be discharged through bankruptcy. An attorney to whom you owe money is treated as any other general creditor during the course of your bankruptcy case.
Individuals must choose between Chapter 13 and Chapter 7 when filing for bankruptcy. One main benefit of Chapter 13 is that it allows individuals to keep their property while making payments to pay off their debts in three to five years. A benefit of Chapter 7 is that it allows for a quick discharge from debts.
Chapter 13 bankruptcy is a federal court-supervised debt repayment plan for those who could not pay their bills under the creditors' original terms. Each month, the debtor is required to mail a check or money order to his local bankruptcy trustee, a court representative responsible for overseeing bankruptcy cases and ensuring payment goes as agreed. There are ways to find out how much money has been paid out in a Chapter 13 bankruptcy case without going through old checks and money-order receipts.
