In considering bankruptcy, most people think of filing their bankruptcy petition under Chapter 7 (liquidation) or Chapter 13 (reorganization) of the bankruptcy code. Either chapter is a popular option for those who intend to declare personal bankruptcy. The bankruptcy procedure of each bankruptcy chapter differs from the other. As expected, their costs vary as well.
Chapter 7 costs may involve two or three expenses, depending on whether the debtor is getting legal help or not. What are these?
The costs of declaring bankruptcy under Chapter 13 in Arizona are similar to those of a Chapter 7 bankruptcy filing. The filing fee for Chapter 13 bankruptcies is currently set at $310 in Arizona. Credit counseling, which is also required in Chapter 13 bankruptcy filings, also costs about $25 to $35.
When it comes to attorney’s fees, a Chapter 13 petition for bankruptcy will cost more; however, a portion of the amount may be paid over time through the court process as part of the reorganization payment plan. With Chapter 7, the fee usually has to be paid in full upfront.
Chapter 7 bankruptcy cases are typically much simpler than Chapter 13 bankruptcy proceedings. With Chapter 7, the main thrust of the proceeding is to allow the bankruptcy trustee to liquidate the debtor’s non-exempt assets in order to pay off his or her debts.
In a bankruptcy filed under Chapter 13, the bankruptcy proceedings are much more involved. The repayment process involves crafting an acceptable debt management plan designed to pay back each creditor and then executing it in a span of three to five years. Attorney fees will be based on several factors, including the complexity of the case. A quote will usually be given during the free legal consultation.
If you’re financially suffering, you need to get started on getting out of debt at the soonest possible time. Debt relief, in many cases, comes in the form of bankruptcy. For appropriate and insightful assistance and advice throughout the process, it’s recommended that you hire a bankruptcy lawyer.
With a lawyer, you will be guided on how to file, in filling out bankruptcy forms and gathering the necessary bankruptcy information you need to provide. You will be represented and counseled throughout the entire experience. Before bankruptcy, a lawyer can advise you on your bankruptcy options and any alternatives to bankruptcy you can take. After bankruptcy and getting your debts discharged, you can be advised on how to proceed to a better financial future.
For any issues and concerns involving bankruptcy laws, come to our bankruptcy law firm for help. Contact us at EZ Legal Fees by WantAFreshStart, LLC to speak with one of our skilled and experienced bankruptcy attorneys.