Tayne Law Group

What are the costs of bankruptcy?

Although bankruptcy is used as a debt relief method, there are many costs associated with bankruptcy.

There are numerous costs of bankruptcy and they can be very expensive. When filing a Chapter 13 or Chapter 7 there are many fees that must be filed in federal bankruptcy court. In addition to attorney fees, the court filing fees for Chapter 13 and Chapter 7 are around $185 and $200, respectively. In the case of Chapter 13 bankruptcy filings, the individual declaring bankruptcy receives a discharge of their debts after all the payments under the plan have been made. Note that just because a bankruptcy petition is filed, this does not always mean a discharge. Many factors can determine the success of a bankruptcy and the bankruptcy can be dismissed thus failing.