The Costs Of Chapter 7 Bankruptcy

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Among the initial questions regarding Chapter 7 bankruptcy Chicago consumers ask is “how much should filing for Chapter Seven cost?” That, of course, is a natural question given that, in most cases, a person contemplating filing for personal bankruptcy in Chicago has typically run up against the limits of their budgetary means.

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While the 2005 changes to the bankruptcy code are making filing for Chapter 7 relatively more complex, and for that reason more expensive, it is still an economical option for those dealing with substantial financial obstacles. For instance, the cost to file a Chapter Seven bankruptcy petition in the U.S. Bankruptcy Court is $299. Though $299 is obviously in no way a modest amount of money, it’s more economical ın comparison to the $350 charge necessary to file a civil law suit in a U.S. District Court.

The bankruptcy code likewise require folks seeking bankruptcy relief to take two courses – one before your bankruptcy filing, and a second after. The pre-filing consumer credit counseling normally costs between $30 and $50. The post-petition financial education program also typically costs between thirty and fifty dollars. There does exist one company that I know of that charges $35 for the pre-filing course and fifteen dollars for the post-filing class. At $50 for both programs, this is the best value I have found.

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There are several other possible costs. Examples include a combined three-bureau credit profile, vehicle or home valuation, tax transcripts, and an asset search. These kind of expenses typically come to roughly $100 if they’re all necessary in your case

The greatest cost related to filing for Chapter Seven bankruptcy is legal fees. Consumer bankruptcy attorneys charge a broad range of fees for a Chapter Seven bankruptcy. A typical charge for a basic, single-filer Chapter 7 is around $1,500 – though I have seen bankruptcy attorneys in Chicago advertising fees as little as $650 on Craigslist. Something to remember, however, is that more often than not you get just what you pay for. Rock-bottom fees generally equate to bare-bones service. A number of discount bankruptcy firms employ contract lawyers to attend the meeting of creditors with the client and paralegals do almost all of the work on the petition.

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Clients will want to look at cost as well as level of services and comfort and ease with the attorney. The cost savings of $300 or $400 won’t mean a great deal if your case isn’t taken care of properly or you find it dificult to work with your attorney.

All in all, the majority of folks will be able to file for Chapter 7 for under $2,000 total. While there are issues that could make the cost higher or lower, the majority of bankruptcy attorneys can provide a quote for a set fee before you make any type of commitment.

Looking to find the best information about Chicago bankruptcy? Then visit www.ChicagoBankruptcyLawOffice.com to find more information from a Chicago bankruptcy lawyer.

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