Filing for bankruptcy may be more expensive than you think. That seems odd considering those who file are in financial trouble. Nonetheless, a Chapter 7 bankruptcy attorney can charge up to $3,000. Further, the fee must be paid before filing. This is because Chapter 7 liquidates debt and that would include the attorney’s bill. On the other hand, Chapter 13 filers make a monthly payment to the bankruptcy court. Attorneys usually require an upfront payment, and the balance is paid in the plan. The courts also require filing fees which most debtors pay up front.
Find a Cheap Bankruptcy Attorney In Tacoma Wa to consult with. The attorney looks at a client’s debts and assets. The debt/asset ratio determines whether a consumer files Chapter 7 or Chapter 13. Chapter 7 is for those who do not have a lot of money coming in. However, they have plenty of debt. On the other hand, Chapter 13 is sometimes called the wage earner’s bankruptcy. The bankruptcy court assigns a trustee to these filers. The trustee looks at income and debt. Afterward, they come up with a monthly fee for the debtor to pay. The monthly fee is divided between secured debt holders. Secured debts are things like mortgages and car notes. Any arrears are added into the total amount of debt. Chapter 7’s are discharged in a matter of months. On the other hand, Chapter 13’s take several years to complete.
Chapter 13 is definitely for those who want to keep their property. However, Chapter 7 filers must past a means test. This is because their property is liquidated to repay debt. Filers are saying they do not have enough income to repay all they owe. Any balances are discharged. If the debtor makes over a certain amount, they must file Chapter 13. Both bankruptcies stay on the filer’s credit report for a few years. However, the filer gets a fresh financial start. Also, once the bankruptcy is filed, all debt collection activity must cease. If you are interested, find a Cheap Bankruptcy Attorney In Tacoma Wa. Do the homework and find out if bankruptcy is right for you.
