How Much Does Bankruptcy Cost?

Millions of people file for bankruptcy in the United States every year because they cannot continue making payments on existing debts. And while filing for either Chapter 7 or Chapter 13 bankruptcy can help get creditors off your back and start you on the path to financial independence, it is not without cost.

When filing for bankruptcy, you still have to make payments to bankruptcy courts, attorneys, and various other entities. When thinking about filing for bankruptcy, you will need to keep these costs in mind and make sure you have experienced legal assistance to help you get through the process as quickly and cost-effectively as possible.

Bankruptcy Costs

There are many costs to filing for bankruptcy that can add up quickly. Before filing for bankruptcy, make sure you are aware of and prepared to pay a few costs in order to get out of debt. Bankruptcy costs often include:

• Pre-bankruptcy costs – This includes the “Ticket In” cost, “Means Test” and “Ticket Out” cost. Before filing for bankruptcy you are required to take a credit counseling session (ticket in) along with a means test to make sure you are eligible for Chapter 7, as well as a financial education class (ticket out). These classes and tests can range in price from being free to costing roughly $50.
• Court Costs – To file for Chapter 7, it is a $299 filing fee while Chapter 13 costs $274.
• Attorney Fees – To file for bankruptcy efficiently and properly you will need a bankruptcy attorney. Attorney fees vary, so shop around before hiring representation.

Most bankruptcy experts estimate that it can cost anywhere between $700 and $1,000 to file for Chapter 7 bankruptcy and between $1,800 and $2,000 to file for Chapter 13 bankruptcy.

Contact Us

For more information on filing for bankruptcy, contact the experienced Arizona bankruptcy lawyers of the Harmon Law Office, LLC, today at 480-829-0494.