Is it expensive to file for bankruptcy?
If you’re considering filing bankruptcy, it’s likely that you’re also concerned about your finances. That can make the prospect of filing feel counterintuitive. After all, isn’t a bankruptcy claim expensive?
What are the costs associated with bankruptcy?
There are two main expenses associated with filing bankruptcy. The first is court filing fees, and they are the same across the nation.
|Chapter 7 Filing Fee||Chapter 13 Filing Fee|
The second expense is attorney fees. These will vary from state to state and even from town to town, depending on several factors. A complex Chapter 13 bankruptcy case in San Francisco, for example, may cost considerably more than a simple Chapter 7 bankruptcy case in Huron.
Can I save money by filing my own case?
If you’re thinking you might save money by filing on your own without an attorney, you should reconsider. While you’re not legally required to hire an attorney to help you file, fewer than 1 in 10 pro se Chapter 13 filers obtain a discharge, according to a 2011 study conducted by the Bankruptcy Court for the Central District of California, a jurisdiction with more pro se filers than any other district in the country. Pro se Chapter 7 filers fared better with 6 in 10 cases receiving a discharge. However, more than 9 in 10 cases represented by an attorney were discharged.
How does a bankruptcy attorney help move my case forward?
Sorting through and understanding the legal jargon and provisions of a bankruptcy filing, especially a Chapter 13 case, can be a challenge even under the best of circumstances. Even adept attorneys argue over the application of rules such as the Best Interest of Creditors Test and the Good Faith Test, and those are early in the proceedings before a case really kicks off.
Most legal laymen are already overwhelmed when they begin the process and accurately interpreting complicated legal rules and measures only add to the pressure. That makes it easy to make errors that can get your case thrown out by the court. This not only creates wasted time, money, and effort, it also limits your ability to file again, meaning you’re in a worse position than you were to begin with.
A bankruptcy attorney provides expert counsel and security during a frustrating and emotionally charged time. While hiring an attorney may feel like an extra financial burden, it’s far less expensive than leaving your finances to fate. Contact The Law Offices of Jeffrey Lohman today to discuss your bankruptcy case.
“The Law Offices of Jeffrey Lohman, P.C. is considered a debt relief agency pursuant to federal law. We are attorneys who help people file for bankruptcy relief under the Bankruptcy Code.”