How to Determine Cost of Filing Bankruptcy

If you are considering bankruptcy as an unfortunate option, it is important to know the cost of filing bankruptcy.

There are many issues to consider when calculating the cost of filing bankruptcy, such as if you will do the filing yourself or through a lawyer and which type of bankruptcy you are trying for.

Read the guide below to help you determine costs associated with filing for bankruptcy.

Difficulty:

Moderately Challenging

Instructions

1. ** Calculate costs for filing for bankruptcy **

   The most obvious bankruptcy cost is the filing fees. These vary, depending on type of bankruptcy, but are generally in the range of about $250 - $300.

2. ** Include expense of credit counseling **

   You must get credit counseling by an approved agency before applying for bankruptcy. These rates also vary.

3. ** Add costs for accountant **

   If you are not very knowledgeable with accounting and you want to make sure you do not do mistakes, you will want to hire an accountant to get all your financial paperwork in order. This bankruptcy cost is optional, though recommended for many.

4. ** Add in attorney fees **

   You will probably also need to hire an attorney to file the bankruptcy for you. Although there are options of filing yourself, thereby lowering your costs of filing bankruptcy, at attorney is your best option to make sure you don't do mistakes in filing.

5. ** Calculate in costs of documentation and records **

   You will have to get together detailed financial records. You might have to pay for certain documents.

6. ** Add in cost of financial management courses **

   After filing for bankruptcy, you might be required to take a personal finance money management course. This too could cost you money.

7. ** Include monetary value of lost time **

   Another cost which many do not take into account is the cost of lost time. If you need to take off from work or you need to pay for babysitters to watch children because you are busy with filing for bankruptcy, you need to take these expenses into account also.

8. ** Calculate in long term costs **

   The most stringent cost of bankruptcy filing is the fact that your credit is lowered for years to come.

Tips & Warnings

• Before filing for bankruptcy think twice. There are many expenses involved.

• This article was written based on research from various sources.