It may surprise you to learn that filing for bankruptcy costs money and may, at first glance, seem like a disadvantage of bankruptcy. After all, this is a system that was designed expressly to help people for whom money is a primary problem, and the last thing you would expect is for the process to saddle a person with further expenses. Thankfully the costs associated with filing for bankruptcy are minimal compared to the benefits of eliminating debts. Over time there is no question that the fresh start afforded by those fees is worth the money.
There is no fine or penalty associated with filing Chapter 7 or Chapter 13 bankruptcy, but there are fees. For instance, prior to filing, the court requires each person to obtain a briefing with an approved credit counselor, regarding your entire financial situation, including your budget. The briefing costs vary and the average cost per person is approximately $25.00. Typically, an attorney is required to obtain a credit report for each person. A credit report costs approximately $32.00 per person. The present court filing fees for a chapter 7 case is $338.00 and $313.00 for a chapter 13.
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There may be additional costs based on the debtor’s circumstances. An upper court lien search, provides a detailed list of all liens that were filed against a person. The lien search costs about $13.00. Based on each person’s circumstances, there may be additional costs for a county search that may provide copies of a deed, mortgage, tax liens, and homeowners’ association liens. The cost of using a web portal for a loan modification application costs $60.00.
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What about legal fees? This is a figure that can vary widely depending on: the circumstances of your case; unusual legal issues or facts; and, the time that is necessary to resolve various matters. Because every case is different and the time requirements can vary so much, Manchel New Jersey Bankruptcy Law Office cannot offer a specific estimate until we have discussed your situation either by telephone or in person. The good news is that the initial consultation with Mr. Manchel, Esq., is entirely free, meaning you can gather valuable advice with no obligation.
An attorney may not receive any payments for fees or costs from a debtor after a chapter 7 case is filed with the court. Therefore, all fees and costs must be satisfied prior to the filing. Mr. Manchel offers a chapter 7 payment plan.
Chapter 13 attorney’s fees work differently because, unlike a chapter 7, a chapter 13 requires the debtor to make monthly trustee payments. Also, attorneys may charge on an hourly basis or a flat fee basis for a chapter 13 case. However, there is no doubt that any attorney that charges on a flat fee basis, charges less than an attorney who charges hourly.
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Chapter 13 attorney’s fees may be included paid by the monthly trustee payments that are spread out over a person’s bankruptcy plan. This means that each month the trustee sends a portion of the trustee payment to the attorney. Attorneys can charge a portion of their fees prior to the filing, with the balance paid through the monthly trustee payments. In addition, every attorney will request the amount for costs, prior to the filing. In most cases, Mr. Manchel does not require any fees up front prior to the filing. Typically, Mr. Manchel only asks for reimbursement for costs prior to a chapter 13 filing, with the entire fee paid through the monthly trustee payments.
Filing for bankruptcy in New Jersey involves accepting additional costs, but the tradeoff is overwhelmingly in favor of getting back in the black. It is not unusual for us to assist our clients with the elimination of five figure or six figure debt loads, that they have struggled to pay for years. Our office has assisted numerous honest individuals who are entitled to a fresh start. Contact Robert Manchel at (866) 503-5655 today to begin the process of eliminating your debt. You may be surprised how quickly you will see financial daylight.
Source: https://tholansonnha.com
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