Tuesday, November 12, 2013

How Much Does Chapter 7 Bankruptcy Cost?

Everyone wants to know what their bankruptcy will cost before they pick up the phone and call a bankruptcy attorney.  Unfortunately, bankruptcy attorneys do not post prices online or guarantee certain prices in advertisements.*  Hiring a bankruptcy attorney is not like ordering a medium pizza.  All chapter 7 bankruptcies do not cost the same amount; the total cost of your chapter 7 bankruptcy will depend on the complexity of your case

If you have a no-asset case (all assets are covered by bankruptcy exemptions) your chapter 7 bankruptcy will cost less.  If you have very little income such that you circumvent the means test your bankruptcy will cost less.  If you do not have any dischargeability issues, do not own a business, and do not have any problem debts your bankruptcy will also cost less.

The cost of your chapter 7 bankruptcy will include the attorney's fee, filing fee, credit counseling, and possibly the cost of buying a credit report and tax transcripts.

*(Well, that's not strictly true.  Some petition mills post ads guaranteeing a certain price for a chapter 7 bankruptcy, but the total cost of chapter 7 bankruptcy always turns out to be greater than the posted price.)

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