How Can I Afford Bankruptcy?

One of the most ironic questions that arises in the course of practicing bankruptcy law is how clients can afford bankruptcy. It would seem self-evident that the poorest among us who seek protection under the law should not have to face rising costs of filing and managing a bankruptcy case, but unfortunately that is exactly what happened when the law was changed several years ago. It has now become incumbent upon bankruptcy attorneys to ease the financial burden for their clients of filing a bankruptcy case in order to help them gain access to the protection provided by the law.

What Are The Costs of Filing Bankruptcy?

Before you can file bankruptcy, you must attend mandatory credit counseling. The cost for this can range from $25 to $100, depending on who provides the counseling. In most cases, credit counselors find that their clients are so far in debt that bankruptcy is the only realistic option for them. In some cases, the fee for credit counseling can be waived, but in some cases the debtor is required to pay this sum. The cost of filing a Chapter 7 bankruptcy with the court is $306 and for Chapter 13 is $281. In both cases, these figures include administrative charges and other fees assessed by the court for handling bankruptcy. This means that before you ever hire a bankruptcy lawyer, you may be facing more than $400 in mandatory fees. In addition, you must pay for post-discharge credit counseling as well, tacking on another $75 to your bill, and may possibly be required to pay up to $200 in fees to file various motions.

What About Attorney’s Fees?

Because the costs of actually filing a bankruptcy can be insurmountable for some clients, bankruptcy attorneys are often flexible in how they collect compensation from their clients for their services. In some cases, payment plans can be arranged; in other cases, the attorney is paid from the money that would have gone to pay regular expenses and bills prior to bankruptcy. If you are concerned about the cost of filing bankruptcy, the attorneys at the Oswalt Law Group in Phoenix can help. We have many flexible plans to help you afford to file bankruptcy and take control of your finances once again. Contact us today for more information on how to manage the costs of filing bankruptcy.