Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I get credit after filing personal bankruptcy?”
Though it may sound like a cruel joke, the reality is that it takes some money to file for bankruptcy. This may be counterintuitive given that those in need of bankruptcy protection likely have little if any extra money to waste on filing fees, but unfortunately the bankruptcy court system requires sometimes-hefty fees to handle cases.
Bankruptcy has become more expensive than it used to be after the implementation of recent bankruptcy reform laws. Thank Congress for deciding to raise the fee for filing a Chapter 7 bankruptcy to $306. Chapter 13 bankruptcies will run you $281 in filing fees while the filing fee for a Chapter 11 is a whopping $1,200. The money you pay in fees goes directly to the bankruptcy court clerk.
How can I pay them?
Though it seems silly to burden already struggling people with yet more expenses, the court system relies on these fees to fund its own operations and has shown no indication of cutting or eliminating the current fee structure. However, it’s good to know that the bankruptcy courts allow filers to pay the fees in installments. Though this doesn’t eliminate the cost of the filing, it does spread it over a longer period of time, hopefully giving you time to put the money together to cover the bill.
Are there any other costs?
Beyond the filing fees that are required with every bankruptcy, those seeking bankruptcy protection will also have to contend with fees associated with credit counseling and debt education courses. Both classes are required before a bankruptcy can be officially discharged and can cost between $50 and $100, with an average cost of around $85. The good news with these courses is that you can apply for a fee waiver if you truly don’t have the money, which reduces the cost to little or nothing.
There are also attorney’s fees to consider when calculating the overall cost of filing for bankruptcy protection. If you intend to file for Chapter 7 bankruptcy, most attorneys will base their fees on how complicated your case is and your ability to pay. In a Chapter 13 case, most courts offer attorney’s fees guidelines laying out how much lawyers should charge for their services. Unless it’s a special case, attorneys typically cannot charge more than what the guidelines say.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828 or find more resources here. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“Too broke to go bankrupt,” published at CNN.com.
See Our Related Videos From Our YouTube Channel:
See Our Related Blog Posts: