One of the greatest ironies in life is that filing for bankruptcy actually costs money. This is why it is so important to tackle bankruptcy issues as soon as possible before it spirals too far out of control to rein in with legal means.
Exactly how much does bankruptcy cost though? Credit Karma estimates less than $400 for Chapter 7 fees. The cost of obtaining professional assistance to file for bankruptcy is also much lower for Chapter 7 than Chapter 13.
Chapter 7 costs
Before filing for bankruptcy, you generally need to attend credit counseling. These classes cost roughly $50, but you may find classes for less if you decide to shop around. Non-profit organizations often offer classes at discounted prices.
The actual filing fee then costs $335. Finally, debtors must pay for the completion of a second course. The cost of this one might get as high as $100, but in many instances, you might get it waived. If not, this does push the estimate outside of the $400 range.
Paying for bankruptcy
If you are already struggling to make ends meet, you might wonder where you are going to find the money to pay these fees. The good news is that there are several options available to you:
- Apply for waivers whenever you can to reduce or eliminate costs.
- You might have the option to set up installments to pay the filing fee over a 120-day period.
- Sell some of our possessions to cover the cost.
- Ask family, friends and organizations for assistance.
Bankruptcy is not free. However, the cost is an investment toward a more stable financial future and peace of mind.