What Costs Can You Control in Bankruptcy?
If you’re considering filing bankruptcy you probably don’t have a lot of money to spend on the endeavor. Some expenses will be fixed and unavoidable. For instance, unless you qualify for a fee waiver (which few people who pay a bankruptcy attorney will qualify for) you will need to pay a $306 chapter 7 filing fee. This expense will either be separate or included in the bankruptcy attorney’s fee, but if it’s included the bankruptcy attorney’s fee will only be that much higher. Another expense that you cannot control is the amendment fee if you are filing an emergency bankruptcy and need to add creditors later on. In Sacramento the fee for adding or modifying creditors is $30, but if you file a complete petition in the first instance you can avoid this nominal fee.
Costs that you can control in bankruptcy are numerous. First, the largest expense in filing bankruptcy will be the attorney’s fee. How much you spend on an attorney is a matter or choice, but be aware that cut-rate attorneys may pose a greater risk to the success of your bankruptcy. In essence, not all bankruptcy attorneys are skilled. Some discount attorneys may jeopardize the success of your discharge with missed creditors, faulty petitions, or omitted information. As a general rule, if your potential discharge exceeds $15,000 or if you have several thousand dollars in assets consider spending at least $1,500 on a bankruptcy attorney. To learn more about how much a bankruptcy attorney costs visit sacramentobankruptcylawyer.us or contact our bankruptcy lawyer for a free consultation and learn exactly how much your bankruptcy will cost.
Other expenses that can be managed include the credit report and credit counseling courses. The credit report will cost anywhere from $30 to $60, but may be included in the attorney’s fee. The credit counseling course can cost as little as $10 but as much as $40. To find out how best to manage these expenses contact a local bankruptcy attorney.