The cost to file Chapter 7 bankruptcy has increased as of June 14, 2014. It is important to know the cost to file Chapter 7 bankruptcy so you can ensure you have set aside sufficient funds. While bankruptcy may seem very expensive, especially when you are already dealing with serious financial problems, it is worth the fees for many people with lots of debt.
Bankruptcy can help you to turn your financial life around and Chapter 7 gives you a clean state by allowing eligible debts to be discharged. You don’t have to pay back these debts, and you can move forward in the right direction in rebuilding your finances after bankruptcy.
Ronald D. Weiss, P.C. can help you to understand the cost to file Chapter 7 and will assist you in every step of a bankruptcy filing in Melville, NY and surrounding areas.
Cost to File Chapter 7 Bankruptcy
According to the United States Bankruptcy Court for the Southern District of New York, changes were recently approved to the Bankruptcy Court Miscellaneous Fee Schedule found in 28 U.S.C. section 1930. Bankruptcy laws are established at the federal level and these new changes in section 1930 will apply to debtors who file for bankruptcy protection in New York.
The changes went into effect on June 1, 2014 and are as follows:
- The total cost to file a petition for Chapter 7 bankruptcy is now $335.00.
- The administrative filing fee for a Chapter 7 bankruptcy increased by $29. The current administrative filing fee is now $75.
- The administrative fee to file a motion to divide a joint Chapter 7 bankruptcy also increased to $75.
It is possible to apply to pay your filing fee in installments or to have your filing fee waived if you can meet certain criteria and demonstrate that you are unable to come up with the money to pay the fees at the time when you are filing for bankruptcy protection.
In addition to the court fees, there are also other costs to file Chapter 7 bankruptcy that you may have to pay. For example, prior to filing for Chapter 7 bankruptcy, you are required to complete credit counseling with an approved agency. There may be a fee for the counseling and/or for the Certificate of Completion that you need upon successfully finishing your pre-bankruptcy counseling. In some circumstances, it is possible to find a free course or have this fee waived.
If you decide to hire an attorney, you will pay your lawyer for bankruptcy services as well. In most cases, attorneys charge an hourly fee to help you with your Chapter 7 bankruptcy. You should ensure you speak with your lawyer about how to keep costs down and about your options for ensuring you get affordable assistance with your bankruptcy. Hiring a lawyer is well worth the money you spend because your attorney will do everything possible to ensure you do everything right, that your bankruptcy moves along swiftly and that your debts are discharged.
Call Ronald D. Weiss, P.C. today to learn more about the cost to file Chapter 7 and to get help from a legal professional who can provide affordable, professional representation throughout your bankruptcy.