Are You Too Broke to Declare Bankruptcy?

One of the most devastating facts someone facing financial hardship will realize is that it is going to take money to get them out of their current predicament – money that will not go toward paying a single bill. If you have reached your wit’s end with finances and you are ready to file for bankruptcy, you should not expect the process to be free. Fortunately, for many it is money invested in repairing their current situation and putting them on the right track for the future.

Not Everyone Can Afford Bankruptcy

Despite the positive aspects of filing for bankruptcy – and there are several – it just is not be an option for many. According to US News and World Report, the average Chapter 7 bankruptcy filer pays $1500 in filing and attorney fees. You probably do not need to be told this is a good chunk of change for someone in a desperate financial situation. Estimates show that anywhere between 200,000 and one million of those considering bankruptcy will not have the money needed to file.

Chapter 7 used to be a more attainable option for many, but Congress changed bankruptcy laws in 2005, making it more expensive and more difficult to file than ever before. Filers are forced to attend credit counseling and meet certain criteria before they can file for Chapter 7. Many believe this tougher system for filing coincides with an increase in a need to file. Recent years have brought tough financial times for many, and more and more are seeking a solution to their serious debt problems.

Going It Alone Can Cost You Big

Some people might be tempted to forego a bankruptcy attorney to reduce the cost for filing. They see the filing fees for both Chapter 7 and Chapter 13 are around $300 without an attorney, and some even have the option of getting that fee waived. For more information on bankruptcy court fees, visit USCourts.Gov.

Unfortunately, without an attorney, you are at a greater risk for having your bankruptcy case dismissed. Furthermore, a good bankruptcy attorney does more than just file your paperwork for you. He or she will help you manage debt before, during, and after your bankruptcy. In some cases, you might even learn there is a better option than filing. Bankruptcy without the support of an attorney can turn a bad situation into one that is much worse.

Are you considering filing for bankruptcy? Do you have concerns about how much filing will cost and whether you can afford it? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 for more information.