If you’re considering declaring bankruptcy, that means your financial situation is less than ideal. Although discharging applicable debts will provide the breathing room needed to regain financial footing, filing for bankruptcy poses its own fiscal challenges. For example, you will need to cover filing fees, attorney fees, credit counseling, and any other costs that arise along the way. Fortunately, you can manage these expenses by planning ahead. Here is what you need to know about the costs that come with declaring bankruptcy. 

Fixed/Nonnegotiable Fees

The filing fee for Chapter 7 is $335. For Chapter 13, it’s $310. If you originally file for Chapter 13 but want to switch to Chapter 7, you will have to pay an additional $25 to cover the difference. These fees are non-negotiable and must be covered at the start of the proceedings. Before you file, you must also complete a credit counseling course, which typically costs between $20 and $100. 

Flexible/Variable Costs 

Attorney fees for bankruptcy assistance vary for each case and firm. If you hire a lawyer to help navigate the proceedings, the total cost will depend on a variety of factors, including the complexity of the case, the number of creditors, and the existence of any non-dischargeable debt. Simpler cases might cost a few hundred dollars to resolve, while individuals with more complicated financial situations can expect to pay a few thousand dollars in attorney fees. Fortunately, reputable firms offer payment plans and will be transparent about their fee structure from the start, so no surprises arise. 

If you want to declare bankruptcy in California, turn to Mark Briden Law. Based in Redding, this firm focuses solely on bankruptcy law. They are committed to providing affordable services with customized payment plans because they understand the financial challenges associated with facing an overwhelming amount of debt. Visit their website to learn more about their unparalleled legal counsel or call (530) 222-1664 to schedule a free phone or in-office consultation.