How Much It Costs to File for Bankruptcy

File for Bankruptcy How Much It Costs to File for Bankruptcy

How Much Does It Cost to File Bankruptcy?

Bankruptcy is a confusing and difficult time for most people. Not only is it a time of financial distress, but the bankruptcy process itself can be complicated and expensive, which can add to your frustration. However, bankruptcy doesn't have to add to your stress and can, in fact, be an affordable and clear tool to help you get back on your feet financially. DoNotPay can help you to determine how much it will cost you to file bankruptcy in the safest, most affordable, and most beneficial way possible. 

Who Is Eligible for Bankruptcy, and When Is It Time to File?

Bankruptcy comes with a multitude of questions, one of which is who is actually eligible to file for bankruptcy, and when should it be filed? Before you embark on your bankruptcy journey, determining if you actually need to start the process and file for bankruptcy is an important step. So who can file for bankruptcy? The following types of people and organizations can file for bankruptcy:

  • Individuals: Individual people who are unable to pay their debts are able to pay their debts due to a lack of financial ability are eligible for Chapter 7 bankruptcy.
  • Family farms and fishing organizations: Family farms and fishing organizations are eligible to file for Chapter 12 bankruptcy.
  • Remaining people and organizations: Anyone not falling into the above two groups are eligible for Chapter 13 bankruptcy.

At this time, DoNotPay is focusing its efforts on individuals who want to file bankruptcy in order to ensure our services go above and beyond when helping you to navigate the confounding process of filing for bankruptcy.

What Are the Different Types of Bankruptcy?

After you conclude that bankruptcy is, in fact, the way you want to go, the next step is determining what type of bankruptcy you want to file. There are three main types of bankruptcy for you to choose from, enabling you to choose the financial solution that best suits your specific needs. The three types of bankruptcy are as follows:

  1. Chapter 7: Low Income Bankruptcy - In order to file this type of bankruptcy, you will need to earn less than the median income for your state or have another reason you are unable to pay back your debts.
  2. Chapter 12: Farmer's/Fisherman's Bankruptcy - This type of bankruptcy is very similar to the following, Chapter 13, bankruptcy. It has additional requirements for family farms and family fishing organizations. There are also additional addendums to take into consideration ownership, operation, and operator's income.
  3. Chapter 13: Wage-Earner Bankruptcy - This type of bankruptcy allows individuals that make less than $394,725 and are in possession of secured debts are less than $1,184,200 to file for it. Chapter 132 bankruptcy usually includes a payment plan to help you get your finances in shape and back on track.

How Much Does It Usually Cost to File Bankruptcy?

Filing for bankruptcy comes with a multitude of processing fees that can really add up. Moreover, trying to wade through the possible fees and forms can leave most people confused about not only what to file but how much it is going to cost to file it. DoNotPay can help you to choose the type of bankruptcy that you need to file and also determine what your total cost will be when filing for bankruptcyThere are several typical types of fees when filing for bankruptcy. Those fees can be typically be broken down in the following manner according to Credit Karma:

Chapter 7 (Basic fees are estimated starting points. Fees tend to go up from here):

Filing Fee$335
Administrative Fee$78
Credit Counseling Fee (if applicable)$50
Trustee Surcharge$15
Reopening Chapter 7 filing (if necessary)$260
Attorney Fees$500

Chapter 13 (Basic fees are estimated starting point. Fees tend to go up from here)

Filing Fee$310
Administrative Fee$78
Credit Counseling fee (if applicable)$50
Reopening a Chapter 13 filing (if necessary)$235
Attorney Fees$500

Once again, these fees are only estimates and a baseline idea from which you can start to build an idea of what your bankruptcy filing will cost you. DoNotPay can help you to put together a customized quote for what your bankruptcy filing will cost you from start to finish. 

How Can DoNotPay Help? 

DoNotPay can help you traverse your bankruptcy journey in an affordable, safe, and clear manner. DoNotPay can help you determine if you need to file bankruptcy if so, the type of bankruptcy you need, and help you determine the cost of your bankruptcy filing. It only takes five simple steps, and you will be on your way to filing your bankruptcy forms and getting back on your feet financially. The fives steps you will need to complete are as follows:

  1. Search for File for Bankruptcy on DoNotPay.

     

  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.

     

  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.

     

  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.

     

  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.

     

All that remains is for you to complete the forms and submit the forms, with your fees, to your local clerk of court. Once you have accomplished all of that. The court will give you the following information:

  • Your bankruptcy case number. Please keep this. It is very important!
  • The name and information for your bankruptcy trustee.
  • The date, time, and location of your meeting with your trustee.

DoNotPay can take the confusion out of filing for bankruptcy. We help you to choose the correct type of bankruptcy, pull the necessary documents, and determine your cost so that you can file bankruptcy in a way that is affordable, fair, and beneficial to you and your finances.

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