When a person goes bankrupt, it means he or she does not have enough money to repay their debts. But, ironically, you do need money to file for bankruptcy!
You need money for two things:
1.The filing fee
2.Fees for the two courses that you need to undergo during bankruptcy
This is when you file pro se, which means you file on your own.
When you hire a lawyer, you also must pay the lawyer fee.
Some of you may think it is better to file on your own than hire a lawyer. You will save money, right? Wrong! Bankruptcy laws are complicated and unless you are a pro in legal matters, it is wise to hire a local bankruptcy lawyer in MD. This will take a lot of burden off your shoulders. The lawyer will guide you in each step of the process and ensure you make no mistake.
Filing fee
When you visit the court to file for bankruptcy, you must pay a fee. The amount depends on the Chapter chosen.
• For Chapter 7, it is $335. The Chapter lets you liquidate your assets and discharge debts
• For Chapter 13, it is $310. The Chapter lets you restructure your payment plan
People filing for Chapter 7 can apply for an installment plan or fee waiver. This is not possible in case of Chapter 13. The logic working here is that if you are unable to pay the filing fee, then how can you handle a new payment plan?
Course fee
You need to do a little homework during bankruptcy. You must enroll for two courses.
1.Credit Counseling Course, which you must undertake before filing. It involves an analysis of your financial status so that you ensure whether bankruptcy is the best option for you.
2.Debtor Education Course, which teaches you how to make better financial decisions so that you can avoid being bankrupt in the future.
You must produce certificates of both courses in the court for successful discharge of your case.
The courses may cost you between $20 and $50 each. The cost depends on the course provider. You can also take course through phone or online. The US Department of Justice provides an online tool that helps you find approved course providers.
Your bankruptcy lawyer can also help you find a good provider.
The good news is that you can apply for fee waivers for both the courses.
Attorney fee:
Cost of hiring an attorney depends on:
• Your location
• How experienced the attorney is
• Complexity of bankruptcy case
Usually, lawyer fee for Chapter 7 is anywhere between $1000 and $1500, while for Chapter 13 is anywhere between $2500 and $3500. In case of complications in your bankruptcy proceedings, the lawyer may hike their fee by $500.
No matter what the fee is, a local bankruptcy lawyer in MD can successfully pull you out of your financial mess. It’s a lot of headache trying to do this alone. Success rate of your case increases when you have an experienced and skilled bankruptcy attorney by your side. When you go bankrupt, your focus should be to clear your financial mess and not fret over the lawyer fee.
Rnnlawmd.com is a reputable law firm where you can find the best local bankruptcy lawyer in MD. Visit the site for more information on bankruptcy and the firm.