Chapter 7 Bankruptcy
When you file your initial Chapter 7 bankruptcy petition in your home jurisdiction, you will need a schedule of assets and liabilities, your current income and expenditures, all of your debts that will be included in the bankruptcy, executory contracts and unexpired leases and a schedule of exempt assets. You will also need to pass the “means test” to determine if you qualify for Chapter 7 bankruptcy.
You will need to make a $299 payment by cash or money order, unless you applied for and were granted a waiver of these fees. The filing fee must be paid in full when filing your initial petition; however, some bankruptcy courts allow the filing fee to be paid in installments.
When your Chapter 7 bankruptcy case has been filed and within 45 days of the creditors meeting, you will need to complete the post-filing Personal Financial Management Instruction Course. This is a different course that the credit counseling course you took when you initially submitted your bankruptcy paperwork. This course costs about $30.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy could be the key to a more secure financial future if you have a regular income but need extra time to repay your debts. During a Chapter 13 bankruptcy you are expected to repay your creditors over a three-five year period. U.S. bankruptcy law allows individuals to file Chapter 13 bankruptcy as long as their unsecured debts are less than $360,475 and secured debts are less than $1,081,400.
When you file for Chapter 13 bankruptcy, there are certain upfront fees that you must pay, including a court filing fee of $271. You do not have to pay any money to get your case filed, but you will be required to pay the fee within a reasonable time after filing. Payment plans can be set up for the fee.
You can expect to pay approximately $3,000 for an attorney to represent you during your Chapter 13 bankruptcy. This will vary from state-to-state as well as with the complexity of your case. Usually, all or part of that can be paid through your Chapter 13 repayment plan.
Bankruptcy laws require every debtor to go through credit counseling through an approved agency; that fee must be paid in advance. The cost for the pre-filing credit counseling is between $50-$75, depending upon where your filing occurs. You will also need to attend a second course, called “financial management” or “debtor education,” before your case is completed. The cost for this course can be $50 or higher, again depending in which state your bankruptcy occurs.
Bankruptcy forms can be purchased at office-supply stores or can be down-loaded from the Internet.
To speak with a knowledgeable and experienced bankruptcy rep from Client First Bankruptcy today, call us toll-free at 800-383-6004. Do it for yourself and for those you care about.