Nobody wants to think about having to file for bankruptcy, but for anybody that owns their own business, it is a possibility that must be acknowledged. In fact, in the 2017-2018 financial year, there were almost 800,000 bankruptcies filed.
But what a lot of people might not realize is that there are costs behind filing. Costs that you will need to be able to pay.
Keep reading to learn the true cost to file bankruptcy, so that should the need arise, you are fully prepared for the costs.
There is More to Filing for Bankruptcy Than Many Realize
Nobody wants to file for bankruptcy. It’s not anything that is undertaken lightly, especially as it only comes around when money and finances are tight. The idea of paying to file for bankruptcy can be daunting, but the rules and regulations surrounding it are complicated, and thus not something that can be done without incurring costs.
The real question surrounding filing for bankruptcy is not really if you have to pay, but what you should expect to pay.
Different lawyers will offer different services at different costs, but it should be noted that just because money is tight, it is not advisable to take the lowest offer you can find.
Why Do You Need to Pay The Cost to File Bankruptcy?
The cost to file bankruptcy can vary depending on whether you are filing a Chapter 7 or a Chapter 13. However, the advice remains to ensure you hire someone that you know can do the job properly.
Do you want to put your bankruptcy proceedings into the hands of a paralegal? They are vital to the legal trade, but the cheap quotes you will get will most likely put your case in their hands.
As counter-intuitive as it may sound, paying the premium rate for your bankruptcy fees is worthwhile.
A good bankruptcy attorney will take care of everything for you, from the paperwork through dealing with the bankruptcy trustee through to the final filings.
What is this going to set you back?
For Chapter 7 filings you are looking at around $3,000, and filing a Chapter 13 will be around $4,000. These costs will vary.
That may seem a lot, but for the service you get and the peace of mind you will need while dealing with the stress of the situation, every cent is worth it.
Bankruptcy is a Last Resort
It’s important to understand the costs to file bankruptcy, but it is also essential to remember that it should be the ultimate last resort. Make sure you assess all of your options and try each available avenue.
A bankruptcy sits against you for a long time and has consequences that will be felt long after that. Just know that if you have no other option than to file, make sure you do so with a reputable attorney and pay the costs that come with it.
For more information on everything from health and lifestyle to money advice, check out our other blogs for helpful tips to ensure you live life rather than just survive it.
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