Filing for bankruptcy does not cost a lot of money as most people think it does. You have to think not just about the filing process but also about the amount of debt you can discharge through bankruptcy. There are people who have eliminated tens of thousands of dollars in unsecured debt yet they only paid a little money to file for bankruptcy.
But remember that everybody’s situation is different such that it may not always be thoughtful to file for Chapter 7 or even Chapter 13 bankruptcy. So, talk to an experienced bankruptcy lawyer so that they can review your situation and show you the steps you need to take next.
Texas Bankruptcy Cost
The cost of bankruptcy will depend on the type of bankruptcy. Of course, filing fees and credit counseling costs are not determined by the type of bankruptcy you file. Your bankruptcy lawyer’s fees will be determined by your location, the level of expertise of the law firm, and the complexity of your bankruptcy case. Bankruptcy law is complicated which means you need to find a lawyer that understands the Bankruptcy Code, Bankruptcy rules, and local rules.
It’s easier to make costly mistakes that could lead to a debtor losing their property if the lawyer does not understand bankruptcy law. So, when filing for bankruptcy, avoid hiring an inexperienced lawyer to save money because it could cost you a lot of money in the long run.
Cost Of Filing A Chapter 7 Bankruptcy
You have to pay $335 or more to the Bankruptcy Court as a filing fee and about $20 or more to the credit counseling agency. There is also a need to factor in the debtor education course fee which is often between $15 and $20 or more. That means that the total cost for filing a Chapter 7 is about $375 or more in court fees, plus lawyer fees.
Cost Of Filing Chapter 13 Bankruptcy
You will need to pay for credit counseling but the debtor education course is usually free. The filing fee to the Bankruptcy Court will be $310 or more, meaning the total cost for filing Chapter 13 bankruptcy is $325 or more, plus lawyer fees.
But a Chapter 13 bankruptcy involves the debtor proposing a 3 to 5-year repayment plan which means that there will be monthly payments that have to be factored into the total cost of filing for Chapter 13. These payments are for secured debts such as for houses or cars that you wish to keep. In most cases, all your unsecured debt is wiped out or erased. Find an experienced bankruptcy lawyer to help you calculate a bankruptcy plan with the lowest monthly payments possible.
Texas Bankruptcy Lawyer Near Me
Filing for bankruptcy in Texas is a complicated process which means you need an experienced bankruptcy lawyer familiar with the state’s bankruptcy laws. Your lawyer will work to ensure that your rights are protected.
Your lawyer will help you deal with any creditor harassment, especially after you have filed for bankruptcy. In some cases, your lawyer may help you determine whether there are other solutions better than filing for bankruptcy.