Typical Bankruptcy Costs
While bankruptcy filing fees are the same wherever you file, there is no such thing as a typical bankruptcy cost after that. Your case may or may not need the services of an attorney and, if you hire one, the fee can vary considerably based on the particulars of the case. Other fees such as document preparation costs or the cost of your future credit are also variables that may apply to your specific case.
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Court Costs
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Although bankruptcy petitions must be filed in state bankruptcy districts, bankruptcy itself is a federal procedure. As such, fees for filing a bankruptcy petition are homogeneous across the nation, and the fees stated on the U.S. Courts website are as of 2006. Chapter 7 is the most commonly filed consumer bankruptcy chapter and costs $299. Chapter 13 bankruptcy, in which a debtor files a creditor repayment plan with the court, costs $274 to file. Chapter 11 bankruptcy, typically used by businesses in reorganization, costs $1,039 while the Chapter 12 bankruptcy used by fishermen and farmers costs $239.
Document Preparation Costs
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If you do not use the services of an attorney and file all of your paperwork on your own, you can save on document preparation costs. However, if you don't have access to the latest bankruptcy forms, or if you can't or don't want to go through the process of physically typing your own bankruptcy petition, you can hire a bankruptcy petition preparer. While petition preparers cannot provide you with legal advice, they can make the bankruptcy process less stressful by handling the actual preparation of your documents for you. Most bankruptcy petition preparers charge between $100 and $200, far less than most bankruptcy attorneys.
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Attorney Costs
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While the law allows you to file your own bankruptcy petition, it can be a complicated process with severe consequences for failure to conform with federal bankruptcy procedures. Even the U.S. Bankruptcy Court strongly recommends that you hire a competent attorney to assist you with your bankruptcy petition. Attorney fees can vary dramatically based on the chapter of bankruptcy you file, the complexity of your case, and the bankruptcy district in which you reside. Simple, no-frills Chapter 7 attorneys may charge as little as about $750, while a Chapter 13 bankruptcy may cost you $3,000 or more. Highly complicated Chapter 11 bankruptcies can run in the tens of thousands of dollars in attorney fees.
Credit Costs
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Filing for any type of bankruptcy will damage your credit report and score severely. This can cost you in many ways, including higher interest costs on any loans you are able to obtain after the bankruptcy. A bankruptcy on your credit report can also cause problems if you attempt to move to a new home or apartment or if you look for a new job, particularly in the financial services industry.
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