National Debt Relief explained in a recent article published last July 15, 2014 that filing for bankruptcy carries a substantial cost to consumers. It lists down the cost items to look out for when planning to file for bankruptcy.
New York, NY (PRWEB) July 17, 2014
National Debt Relief shared in a recent article published last July 15, 2014 that filing for bankruptcy carries a substantial cost to consumers. The article titled “Before Filing For Bankruptcy, Make Sure You Can Afford It!” explains the possible expense items in case a debtor decides to file for bankruptcy.
The article starts off by citing that the cost of filing for bankruptcy may have contributed to the recent housing crash. This is because as consumers were unable to discharge their debts through bankruptcy because of the cost involved, they were forced to just default on their mortgage loans.
When filing for bankruptcy, the article shares that the primary expense would be attorney fees. This can make up majority of the cost involved as it can range anywhere from $600 to $5,000. Exact figures are dependent on the type of bankruptcy case you will file and the start where the case will be filed. But there are pro bono lawyers who can help with the case without asking for a single cent.
Attorney fees can really take its toll on the overall expense of bankruptcy filing costs. When a debtor wants to forego this expense, the next logical step is to pay for the services of a bankruptcy petition preparer. They will assist in preparing the petition and would cost anywhere between $100 to as high as $300. The final cost would depend again on the type case being filed in court.
The article explains as well how the US bankruptcy court mandated a debtor filing for bankruptcy to undergo credit counseling. Usually given to a debtor by an accredited agency, this counseling can also cost around $50 from your own pocket.
Filing fees will also have to be considered when filing for bankruptcy and can cost about $280 to $310. But if it is a Chapter 7 case, there is a possibility to get the filing fee waived provided there is proof that the income of the debtor is less than the 150% of the poverty line.
Another cost item in filing for bankruptcy is the trustee fee. This is specific for a Chapter 13 case where the court appoints a trustee to oversee the repayment plan of the debtor. The fee is usually a percentage of the repayments and not a specific dollar amount.
To read the rest of the article, click on this link: [http://www.nationaldebtrelief.com/filing-bankruptcy-make-sure-can-afford/
For the original version on PRWeb visit: http://www.prweb.com/releases/bankruptcy_cost/for_debtors/prweb12022967.htm