It is not expensive to file bankruptcy. In fact, it is probably the best demonstrable value for legal services that exists.
Chapter 7 cases are flat fees and the attorney takes the risk that the case will take more time and effort than envisioned.
A typical case costs just one to four percent of the amount you owe. Sometimes it costs just a month or two of the minimum payments made on credit cards. When you stop paying the credit cards under the protection of your law firm, it takes only one or two months to finance your case.
Where else in paying for legal services do you get an almost guaranteed leveraging of costs to benefit like bankruptcy? Not with your divorce attorney or if you’re defending or prosecuting a lawsuit.
The financing of your bankruptcy case should be the least of your concerns unless you are truly destitute. Competition keeps the fees all pretty much in line on Chapter 7s, and the Bankruptcy Court sets a recommended fee on Chapter 13s that is generally adhered to for practical reasons.
Worrying about bankruptcy fees and costs is letting the tail wag the dog. You need to make your decision whether to file or not and who represents you on what is right for you.
Top 10 Myths About Bankruptcy
- Debt consolidation is as good as bankruptcy
- Everyone will know you filed bankruptcy
- You will never get credit again
- Filing bankruptcy will hurt your credit for 10 years
- Only deadbeats file for bankruptcy
- Your property will be sold by the bankruptcy trustee
- You have to hide assets to file bankruptcy
- It is expensive to file bankruptcy
- It is hard to qualify to file bankruptcy
- Taxes are not dischargeable in bankruptcy
