How Much Does Bankruptcy Cost
When facing bankruptcy, many individual and corporate debtors are unaware of the bankruptcy fees involved and do not realize just how much a bankruptcy can cost. Court filing fees for bankruptcies are fees charged in addition to the legal fees charged by bankruptcy attorneys.
While attorney fees may vary significantly from state to state, and even from attorney to attorney, the bankruptcy fees, which are mandated by the courts, are basically standard throughout the country. These fees are assessed by the United States Bankruptcy Court's Clerk of Court, and payment is made directly to this court. The fees are based upon the type of bankruptcy that is filed.
There are actually several types of bankruptcy that may be filed, but the three most common forms are Chapter 7, Chapter 11, and Chapter 13. In a Chapter 7 bankruptcy, non-exempt assets are liquidated and the proceeds from that liquidation are used to pay creditors. Certain debts are discharged. A Chapter 7 bankruptcy is designed for individuals, not corporations or partnerships. This type of bankruptcy is viewed as one that will basically give the debtor a fresh start. The bankruptcy fees for a Chapter 7 bankruptcy filing are $299.
Chapter 11 bankruptcies are generally declared by corporations and are used as an opportunity for the entity to reorganize their finances and/or operating practices. This tactic often allows the corporation the opportunity to continue operations, while they work out arrangements to pay creditors over an extended period of time. The bankruptcy fees for a Chapter 11 bankruptcy are $1039.
A third type of bankruptcy is the Chapter 13 bankruptcy. This option is considered a hybrid of a Chapter 7 bankruptcy and a Chapter 11 bankruptcy and is available to individuals who desire to repay their creditors over a period of time. The time frame for this repayment is usually between three and five years. The advantage to this type of bankruptcy is that the individual is allowed to retain possession of property.
The bankruptcy fees for this type of bankruptcy are $274. Individuals, even if self-employed or operating an unincorporated business, are eligible for chapter 13 relief providing the individual's unsecured debts are less than $360,475 and secured debts are less than $1,081,400. These amounts may be changed periodically.So can you afford bankruptcy? Is it worth getting rid of what you owe and rebuilding credit, or working through with what you have? Find real debt solutions with Clear Bankruptcy.
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