When you think of bankruptcy, you think of financial insolvency. In other words, anyone who chooses bankruptcy probably cannot afford to repay their debts. So the question of whether you can afford bankruptcy really boils down to can you afford not to?
Clearing The Air
Bankruptcy itself doesn’t cost much. While there are filing fees that are paid to the court, these are generally a drop in the bucket compared to what you owe creditors. For a Chapter 7 case, the average filing fee ranges from $200-299, and $185-274 for a Chapter 13 case. In some situations, the court may waive the filing fee for a Chapter 7 filer if their financial hardship warrants it.
You may think that hiring a Dallas bankruptcy attorney would cost thousands of dollars. Actually, attorneys make their money by their participation in the process. In other words, part of the money they receive is through the bankruptcy Trustee, who is responsible for paying the creditors who have a claim against your case. A quality bankruptcy attorney will offer free consultations for clients to determine their eligibility and ask questions. Further services are generally offered for a fee, but these fees are highly specific to the financial needs of a client. You may be surprised to learn that many even offer payment plans for service fees.
Although you may not feel you have the money for an attorney, the services they provide are invaluable for your future of financial freedom.