Is bankruptcy the right choice for you? Find out the true cost of filing a bankruptcy
Are you struggling with overwhelming debt and considering filing for bankruptcy, but unsure of how much does bankruptcy cost in LA? Bankruptcy can be a powerful tool for achieving financial freedom, but it’s important to understand the expenses you’ll face throughout the process.
At E. Orum Young Law, Bankruptcy Specialist, our experienced LA bankruptcy attorneys can guide you through the entire bankruptcy process and help you manage the cost of filing. We will make sure to provide you with the right guidance you need in the event that you decide to file for bankruptcy.
In this blog post, we will explore what costs come along with filing for bankruptcy and things to consider as you make your decision.
- What is bankruptcy?
- What are the common types of Bankruptcy?
- What are the costs of Chapter 7 Bankruptcy?
- What are the costs of Chapter 13 Bankruptcy?
What Is Bankruptcy?
Bankruptcy is a legal process that allows an individual or organization to declare themselves unable to pay the debt they owe different creditors. It is a process administered by the bankruptcy court and only used as a last resort when other means of settling debts have failed.
Bankruptcy can shape an individual or business’s overall financial well-being, as it not only reduces their present debt burden and helps repair credit ratings over time. The goal of bankruptcy is to provide individuals and businesses with a fresh start if they are struggling with their finances. It is always best to consult a bankruptcy lawyer like E. Orum Young Law. Schedule a FREE CASE REVIEW today!
What are the Common Types of Bankruptcy?
Knowing the different types of bankruptcy available can help decide which option is best for an individual’s situation. The two most common types of bankruptcy are Chapter 7 and Chapter 13, both of which are outlined in the United States Bankruptcy Code.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a type of bankruptcy that gives individuals with overwhelming debt the chance to have their debts discharged and start over financially. It is an ideal solution for those who are looking to free themselves from excessive amounts of debt, since it erases most unsecured debt, including medical bills, credit card balances, and more.
The process allows you to keep certain assets and property; however, any remaining personal property may be sold in order to pay creditors. Ultimately, filing for Chapter 7 Bankruptcy can provide much-needed relief from financial hardship by creating a fresh start unencumbered by the burden of past debt.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a type of bankruptcy filing that enables individuals to keep all of their assets while paying back creditors over a period of three to five years. It is a viable option for those looking for financial relief from mounting debt or repayment pressure due to certain special circumstances. The process involves the preparation and filing of a repayment plan that details exactly how the individual plans to repay their creditors over the designated period of time, typically through what is known as a wage earner’s plan.
Afterward, this plan must be approved by the courts which can result in lowered interest rates on certain debts and even principal balances which lowers the total debt owed at completion. It can serve as an effective option for those hoping to reorganize their financial obligations without losing their homes or possessions.
What are the Costs of Chapter 7 Bankruptcy?
- Filing fee – The current filing fee for Chapter 7 Bankruptcy is around $299, which is paid to the bankruptcy court.
- Attorney fees – The fees charged by a bankruptcy attorney for handling your case can vary depending on the complexity of your case, the location of the attorney, and other factors. In general, attorney fees for Chapter 7 Bankruptcy can range from $500 to $3,500 or more.
- Credit counseling fees – Before filing for bankruptcy, you’re required to complete a credit counseling session with an approved agency. This usually costs around $25 to $50.
- Debtor education course fees – After filing for bankruptcy, you must complete a debtor education course with an approved agency. This usually costs around $25 to $50.
- Miscellaneous expenses – There may be other expenses associated with filing for bankruptcy, such as fees for obtaining credit reports, photocopying documents, or mailing documents to the court.
You have to remember that the total cost of filing for Chapter 7 Bankruptcy can vary widely depending on your individual circumstances. It’s important to consult with an experienced bankruptcy attorney to get a more accurate estimate of the costs involved in your case. At E. Orum Young Law, Bankruptcy Specialist, you don’t have to worry about anything.
What are the Costs of Chapter 13 Bankruptcy?
- Filing fee – The filing fee for Chapter 13 bankruptcy is about $310.
- Credit counseling and debtor education fees – You are required to take a credit counseling course before you file for bankruptcy and a debtor education course after you file. The cost of these courses varies, but they typically range from $20 to $100 each.
- Attorney fees – Attorney fees vary depending on the complexity of your case and your location. In Louisiana, attorney fees for a Chapter 13 bankruptcy case typically range from $2,500 to $4,500.
- Trustee fees – In a Chapter 13 bankruptcy case, a trustee is appointed to administer your case. The trustee’s fees are based on a percentage of your payments under your Chapter 13 repayment plan.
- Court costs – In addition to the filing fee, there may be other court costs associated with your bankruptcy case, such as fees for motions, objections, or appeals.
- Credit report fees – Your bankruptcy attorney may also charge a fee for obtaining your credit report and analyzing your debts.
- Miscellaneous expenses – There may be other miscellaneous expenses associated with your bankruptcy case, such as postage, copying, and mailing fees.
It’s important to note that these are just estimated costs, which may vary depending on your specific case and circumstances. It’s always a good idea to consult with a Louisiana bankruptcy attorney to get a more accurate estimate of the costs involved in filing for Chapter 13 bankruptcy.
Want to Know More About How Much Does Bankruptcy Cost in LA? Call E. Orum Young Law Today!
Seeking legal representation is highly recommended when filing for bankruptcy. An experienced bankruptcy attorney in Louisiana can provide guidance, support, and protection throughout the bankruptcy process, ensuring that your rights are protected and that you have the best possible outcome for your financial situation.
At E. Orum Young Law, Bankruptcy Specialist, we can help you navigate the complex legal system, maximize exemptions, and build a feasible repayment plan. If you’re considering filing for bankruptcy or are interested to know how much does bankruptcy cost in LA, don’t hesitate to contact us for a FREE CASE REVIEW.