I Want To File Bankruptcy In Coral Springs – How Do I Pay For It?

On behalf of Bankruptcy Law Firm of Clare Casas on Wednesday, May 4, 2011.

A common reason that most people delay finding out about bankruptcy is a fear that they can’t afford the process. You don’t have enough money to pay your bills. You’re drowning in debt. The mortgage is behind six months or more – how can you afford a bankruptcy?

The better question is: “How can you afford not to?” Although there are some costs associated with filing for bankruptcy, remaining in debt will cost you far more in interest, late fees, stress-related health issues and overall quality-of-life in the end.

If the total cost of filing a Chapter 7 bankruptcy is less than $2,300, what you need to ask yourself is this: If my creditors offered me a deal to wipe out all my credit debt right now for less than $2,300 – would I take it? Most people would jump at it! Filing a Chapter 7 bankruptcy is creating that deal for yourself and forcing the creditors to take the deal – No more begging them to give you a break. But lets take a look at some of the costs:

Court Costs

There are costs involved with filing for bankruptcy. First there is a fee that must be paid to the court for filing the case. That fee is currently $299 for a Chapter 7 and $274 for a Chapter 13. There are costs associated with preparing the petition such as pulling all three credit reports, mailings, copies, and administrative costs for maintaining your case file. Those costs are $150. These are normally the only costs associated with filing a bankruptcy case and fortunately, they’re both pretty manageable. The next cost are attorney fees.

Attorney Costs

The legal fees for hiring an attorney can vary greatly by firm, city or state. The average cost for a Chapter 7 case can range between $1,000 and $2,500. Before you automatically think that you can’t afford those fees, think about what you could lose in a bankruptcy if you don’t know the law and how it may affect your assets (if any). I was in a 341 meeting and saw a woman who filed her own case lose a $9,000 car (her only transportation) because it was paid off and she had no idea that it would become property of the bankruptcy estate and she would lose it. She lost it. Having the proper legal representation may not have saved the car but at least she would have known it was at risk and made a different decision or she could have made arrangements to keep it.

Hiring An Attorney versus Doing It Yourself As stated above, you may file for bankruptcy in Coral Springs or Fort Lauderdale and complete the process yourself. You don’t have to hire an attorney. But, hiring a bankruptcy attorney can often make the process much smoother and less scary.

An experienced bankruptcy attorney will manage the paperwork, trustee paperwork and court filings, as well as provide you with the resources you need to complete your debtor education courses. A good bankruptcy attorney is your representative and should convey a sense of compassion and flexibility while managing your case.

Your attorney should be able to tell you within a certain amount of probability what property (if any) is at risk and how to prepare for it. It’s mush easier to deal with an asset case (a case that has assets which the trustee can liquidate) if you know what they are and how to keep them if you’d like. It’s also easier to get a fresh start if you have someone that knows what exemption laws are available to help you keep your assets by protecting them. But how do you pay for it all??

Payment Plans

The most common way that people get out of debt through bankruptcy is to hire an attorney that accepts installment payments. Many people stop paying their credit cards and apply those payments towards the bankruptcy filing costs. A Chapter 7 bankruptcy case must be paid in full prior to filing but a Chapter 13 case can have some of the fees rolled into the payment plan.

At the Law Firm of Clare Casas we want everyone that is in need of a fresh start and sleep to find both. We offer very flexible payment plans that are crafted around your budget and needs. We don’t believe that anyone should remain shackled to debt because of the cost of filing. During your free consultation, we will discuss all fees, costs and how to pay for them. You’ll be surprised how flexible our payment terms are and pleased to know that you can start all over again! Find out today at either our Coral Springs or Davie location. You have nothing to lose but the debt!