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Is there a charge for filing bankruptcy?

Posted by admin | Posted in Bankruptcy | Posted on 25-01-2010

Yes, in fact there are several different charges related to filing for bankruptcy as well as some additional expenses that should at least be considered before filing. Individuals filing for bankruptcy usually file under either Chapter 7 or Chapter 13, and each has its own basic fee. As of January 2010, a Chapter 7 filing costs $299 and a Chapter 13 filing costs $274. Under the forma pauperis rules this fee can possibly be paid in installments or waived altogether at the discretion of the judge, but this possibility is usually reserved exclusively for people in the absolute worst possible circumstances. More often than not, if there is a way to pay your filing fee, the court will instruct you to do so.

The filing fee is not the only amount absolutely required in order to file for bankruptcy. All bankruptcy petitions require both a statement of compliance and a certificate of credit counseling from a government approved credit counseling agency that dates from 180 days before the filing. Failure to receive this credit counseling and the related documents can result in your bankruptcy cases being dismissed in full. These credit counseling services usually cost quite a bit of money as well and most of them expect to be paid upfront for issuing the documents you need in order to file for bankruptcy.

Finally there is the expense of hiring a bankruptcy attorney. The California bankruptcy process is extremely complex and convoluted, and though individuals are allowed to file pro se, or by themselves without an attorney, doing so usually results in a disaster. Failure to have an attorney frequently means that you fail to get many of the possible benefits from filing for bankruptcy and also frequently results in your case being dismissed because of some technicality or improper filing. If your case is dismissed, even due to a technicality, you still lose your filing fee or the associated waiver and have to start over from scratch.

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