Bankruptcy is a huge decision and one that should not be taken lightly. In fact you will have to weigh all the pros and cons involved before you actually decide that bankruptcy is the solution to your problems. It is the last resort of individuals and companies that have got themselves in a financial cesspool.
Bankruptcy is a decision that should not be taken lightly. There are several implications, financial and social related to it. Do not be under the impression that bankruptcy comes cheap. It is in fact quite the opposite. When you file for bankruptcy there is a social stigma that automatically gets attached to you. However, this is an option that you will have to look into if you have no other options.
To begin with, you will need the services of an experienced bankruptcy lawyer. They will be able to assess your situation and perhaps give you another way out other than bankruptcy. Should you decide to go ahead with it, he will be able to tell you the chapter under which you should file. A bankruptcy lawyer will also be able to put together the necessary documents and file your claim in court. Doing this yourself is an option, but the complications involved can get the better of you. One of your primary costs will be having to pay your lawyer.
The next set of fees that you are liable for are filing fees. These are compulsory charges that you will need to file for bankruptcy. In general, Chapter 7 will cost you $200 – $170 as filing fees and $30 as a notice fee. Under Chapter 13 you have to $185 – $155 for filing and #30 as notice fee. One thing you will have to remember is that this fee remains constant whether you are filing as an individual or jointly.
If by chance you file under the wrong chapter and you want to shift, there will be a penalty charge involved. This is variable. Therefore it is absolutely essential that you get the right advice on the chapter you should file under. Certain other fees you will have to look into are abandonment of property fees, fees for reopening and withdrawal of reference fees. There are other costs involved that will slowly add up.