If you are planning to file for bankruptcy, you will have to keep several things into your careful consideration – bankruptcy cost is one of them. Before you go ahead and hire your bankruptcy attorney, it is very important for you to understand that the entire bankruptcy procedure might be very expensive and since, your financial situation is already pathetic, you may have to look for some other solution, to pay the various bankruptcy expenses. Therefore, it is always prudent to evaluate the possible bankruptcy cost beforehand. This article will explain some of the important components of bankruptcy cost.
Bankruptcy Attorney Fee
If you are not thoroughly aware of the various bankruptcy laws, you will certainly hire a bankruptcy attorney to deal with your specific bankruptcy case. Here, I must add that bankruptcy laws are very complicated and it is almost impossible for a common person to understand the intricacies of the same. Bankruptcy attorney are specialized persons and they know the ins and outs of every type of bankruptcy case. They know how to defend the bankruptcy claim on your behalf. However, none of the bankruptcy lawyers will provide their service to you without a fee. In usual circumstances, especially when the bankruptcy lawyer is not your friend or relative, you are supposed to pay a very high amount as the bankruptcy attorney fee. It can be hundreds or even thousands of dollars.
Filing Bankruptcy Fee
Filing bankruptcy fee is the next item that constitutes a major portion of the bankruptcy cost. In the last few years, as new bankruptcy laws have been added to the bankruptcy code, the filing bankruptcy fee has risen to a very high level. You can imagine the rise in the price with the very fact that just four years back, the filing bankruptcy cost was just a few dollars, but now you must be ready to pay hundreds of dollars for the same.
Other Expenses
There can be various other expenses as well. For example, if you have filed for chapter 7 bankruptcy, but at a later stage, and you realize that you do not qualify for the same and now you want to file for chapter 13 bankruptcy, you will have to pay a certain amount as a conversion fee to do that.
Long Term Bankruptcy Cost
The above-mentioned expenses are the direct expenses that you have to pay during the bankruptcy procedure. However, you should also not forget about the long-term bankruptcy cost. You should keep in mind that once you are declared as bankrupt, it would affect your financial life negatively for the next 8-10 years.
Bankruptcy cost is the amount of expense that you need to pay during the bankruptcy procedure. The bankruptcy attorney and the filing bankruptcy fee are perhaps the two most important elements that will cover the major portion of the overall bankruptcy cost.
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