Low Cost Bankruptcy
To determine the cost of bankruptcy you may wish to consider the fees that can be involved in filing for bankruptcy. According to the bankruptcy court system, the first step to filing for Chapter 7 bankruptcy is for the debtor to file a petition with the bankruptcy court in their area. In addition to the necessary forms and information, filing comes with a case filing fee, an administrative fee and a trustee surcharge. Any attorneys fees would be in addition to these court fees.
In December 2010, the case filing fee, which courts are required to charge, was $245, the administrative fee was $39 and the trustee surcharge $15. If the court approves it, however, debtors filing for Chapter 7 bankruptcy can pay these fees in installments, with some restrictions. The same is true for Chapter 13 bankruptcy filers, except in the case of the trustee surcharge. In some cases, the courts can waive these fees, if the debtor who has filed for bankruptcy has an income that is under 150 percent of the poverty level.
If you have questions about the fees involved in filing for bankruptcy, above the cost of bankruptcy or any other questions about the bankruptcy, you may want to talk to one of our sponsoring bankruptcy attorneys. You can arrange a free, no-obligation consultation with a local attorney by simply filling out the case review form below.
Chapter 7 Bankruptcy Means Test
To qualify for Chapter 7 bankruptcy liquidation, debtors will need to pass the means test. This test is meant to determine that those who file for Chapter 7 bankruptcy are well in need of the relief that it provides. In manycases, those who don't qualify for Chapter 7 bankruptcy instead file for Chapter 13 bankruptcy. Chapter 13 bankruptcy is typically for those who have regular income coming in, and it requires that debtors set up a repayment plan with the court. This plan typically spans a 3-to-5-year period.
The Chapter 7 bankruptcy means test is a formula applied to a debtor's income, essentially deciding if the debtor won't have enough money to otherwise make a repayment plan under Chapter 13 bankruptcy. The means test compares the debtor's income to the median income in the state where they are filing for bankruptcy, for families of similar size.
Usually those who fall below this figure can continue to Chapter 7 bankruptcy, while those above may need to pass to the next step, which calculates the amount of monthly income that goes to particular expenses. The level of disposable income is determined, and if it is below a certain level, the debtor is typically allowed to file for Chapter 7 bankruptcy.
Consider a Bankruptcy Attorney
One of our sponsoring bankruptcy attorneys may be able to answer your questions about the cost of bankruptcy, about the bankruptcy means test or any other concern you have. Please fill out the form below, and we can connect you with a bankruptcy attorney in your area today.