What it Costs to Go Bankrupt

It may seem like an oxymoron: you’re filing for bankruptcy because you’re broke, you can’t pay your bills, and you’re willing to sacrifice years of bad credit and financial difficulties with a black “bankrupt” mark by your name for debt relief. And the final bill you’ll have to pay before you file bankruptcy is for the filing itself.

Luckily, the two most common forms of bankruptcy are also two of the least expensive to file. As of November 1, 2011, Chapter 7 bankruptcy cost, in total fees at time of filing, $306. Chapter 13 cost $281. These fees didn’t include any extra court miscellaneous fees, which could be include, but are not limited to:

 

  • the certification of any document: $11
  • the exemplification of any document: $21
  • the reproduction of an court audio proceeding: $30
  • filing a complain: $293
  • administrative fee for filing a case under Title 11: $46
  • check paid into the court which is returned for lack of funds: $53
  • filing an appeal or cross appeal from a judgment, order, or decree: $293

It’s not a cheap process, and many people filing bankruptcy think that filing without a lawyer will save them money and time in the long run. You HAVE to pay the filing fees listed above with or without a lawyer. According to the U.S. Bankruptcy Courts, it’s better to hire a litigator, regardless of the extra cost, to avoid more financial headache down the road. Bankruptcy crime is a fraud punishable by a fine of up to $250,000 and / or five years in prison. If you or someone you know is considering filing for bankruptcy protection, contact a dedicated Chicago bankruptcy attorney today.

 

Photo courtesy of  scottchan

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