What Is Bankruptcy Law?
Bankruptcy law is federal law allowing individuals, married
couples, and businesses who cannot meet their financial
obligations to be excused from repaying some or all of the debt.
What Areas Does Bankruptcy Law
Although there are many different kinds of bankruptcy, the
two main types of bankruptcy are:
Chapter 7 Bankruptcy: This type of bankruptcy is called a
“liquidation bankruptcy” because the bankruptcy trustee
can sell your property to pay back some of the debt you
owe to creditors. There are many exceptions and
protections, so debtors will not lose all their property.
Chapter 13 Bankruptcy: When you file a Chapter 13
bankruptcy, your must propose a repayment plan that
details how you will pay all of your debt within the next 3
to 5 years. The minimum amount of payment depends on
the income you earn, how much you owe, etc.
Do I Need a Bankruptcy Attorney?
There are many procedures to filing for bankruptcy. The signs that you may
need to consult with an experienced bankruptcy attorney are:
• You are unable to pay your bills
• Constant calls from creditors
• Bounced checks
• Need representation in court
• No cash flow to pay back debt
A bankruptcy lawyer can help you restructure your business and reorganize
your debts to be paid later. A lawyer can also negotiate a payment plan with
creditors if you are trying to pay your debt, but need more time.
How Much Does a Bankruptcy
Many bankruptcy attorneys will charge by the hour and will ask
you to pay a retainer up front. A retainer is a fee paid upfront
before the legal services has begun which covers around 10 hours
After the first 10 hours of work have been completed, the lawyer
will then charge by the hour. Your rates will vary depending on
where you live, the type of bankruptcy you decide to file, and the
complexity of your case.
Do Bankruptcy Attorneys Have
A bankruptcy attorney is always aware that their clients are
financially unstable and cannot make large payments for their
services. As a result, payment plans are common.
However, most will ask for a retainer before committing to any
legal service and will not file your case until all fees are paid in
full. If you can’t afford to hire a bankruptcy attorney, consider
• Filing your own petition in Federal court
• Obtaining assistance from a free clinic or program
• Finding a pro bono attorney
• Filing a chapter 13 bankruptcy to pay attorney fees through
your payment plan
How Much Are Filing Fees for a
Chapter 7 Bankruptcy Case?
Filing a Chapter 7 Bankruptcy Case:
A Chapter 7 case starts when a petition is filed in court.
Whether it's you or a creditor who files it, a $299 filing fee
must be paid when it's filed.
The fee includes several items:
• $245 filing fee
• $39 administrative fee
• $15 for compensation to trustee appointed to your case
How Much Does a Chapter 13
A Chapter 13 case also begins with the filing of a petition.
When you file the petition, you must pay a $274 filing fee.
This fee includes:
• $235 filing fee
• $39 administrative fee
There's no trustee's fee because the trustee's payment is
arranged for in your repayment plan.
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