How Much Does it Cost to File for Bankruptcy in Michigan?
Ironic as it may seem, filing for bankruptcy carries many costs. While some of the costs may vary from state to state, others are fixed whether you are filing in Michigan or in any other state. The total cost of filing bankruptcy in Michigan can vary to a large part depending on how much work you are willing to do yourself and whether you qualify for certain fee waivers.
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Legal
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The most variable cost associated with bankruptcy is the cost of your attorney. To pay the lowest possible short-term cost, you can file your own petition without the help of an attorney. However, since filing bankruptcy could have long-term financial and legal complications, the United States Courts recommend you do not file on your own but rather retain a competent attorney. Depending on the chapter of bankruptcy you file and the complexity of your case, your attorney fee can range from about $750 to $3,000 or more. If you are in a rural area of Michigan, you can probably find an attorney for a slightly lower cost than one in a major population center such as Detroit.
Paperwork
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Some attorneys charge per hour, so if you can do a lot of the preparation of your petition on your own, you may be able to lower the cost of your bankruptcy. If you need help with the petition but do not want to or cannot afford to hire an attorney, you can use the services of a bankruptcy petition preparer. For an average cost of $100 to $200, a petition preparer service will enter all of your financial data onto the correct bankruptcy forms for you, including any local Michigan forms.
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Petition
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The fees to file a bankruptcy petition in Michigan are the same as in every state. For a Chapter 7 bankruptcy, you must pay the court $299. For a Chapter 13, the filing fee is $274. If you fall below 150 percent of the Michigan state poverty line, you may qualify for a waiver from your Chapter 7 filing fee.
Payments
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If you choose a Chapter 7 bankruptcy, your overall cost will usually be much lower than if you file a Chapter 13 bankruptcy. A Chapter 7 bankruptcy generally ends with a discharge within three to four months after filing, and you do not have to make any payments to creditors. A Chapter 13 bankruptcy lasts between three and five years, during which time you must make monthly payments to the court on behalf of your creditors.
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