One of the primary questions regarding Chapter Seven personal bankruptcy Chicago clients ask is “exactely how much will filing Chapter 7 cost?” That, certainly, ıs really a genuine concern since, usually, a man or women considering filing for Chapter 7 in Chicago has pretty much run up against the limitations of his / her monetary resources.
Even though the 2005 changes to the bankruptcy code made filing for Chapter 7 somewhat more complicated, and therefore more costly, it is still an affordable course of action for those experiencing significant financial obstacles. For instance, the charge to file a Chapter Seven bankruptcy petition in the U.S. Bankruptcy Court is $299. While $299 is certainly not a modest amount of money, it is actually more economical than the $350 filing fee required to commence with a civil 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.
There are certain other possible expenses. Some examples are a combined three-bureau credit profile, vehicle or home valuation, tax transcripts, and an asset search. These types of costs usually add up to around a hundred dollars if they are all essential 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.
Consumers should look at price along with level of services and comfort with the attorney. The savings of $300 or $400 is not going to mean a whole lot if your bankruptcy is not taken care of properly or you find it dificult to work with your lawyer.
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.
Learn more about Chicago bankruptcy. Stop by ChicagoBankruptcyLawOffice.com where you can find out all about Chicago bankruptcy attorney John Kunes and what he may be able to do for you.
Tags: Bankruptcy, finance, legal