The Cost of Bankruptcy

gavel on a table scattered with money
When you are in financial distress, of course, you want to know how much it costs to file bankruptcy. While many get tied up in the cost of hiring a bankruptcy attorney, there are many fees associated with bankruptcy that you should be aware of.

The Cost of Columbus, Ohio Bankruptcy

The first fee you need to be mindful of is the filing fee. The court fee varies on Chapter 7 or Chapter 13 status. In Columbus, Ohio, your court filing fees are:
  • $335 for Chapter 7, which can be paid in installments after the case is filed.
  • $310 for Chapter 13, which must be paid prior to filing.
Also with the associated filing fee, you will also need to be mindful of the attorney fees. For example, at The Jones Law Firm, our Chapter 7 and Chapter 13 rates are set based upon the complexity of your bankruptcy case. We will provide you with a quote at your initial consultation so you know what to expect. For Chapter 13 bankruptcy cases, your attorney fees are paid over time through the repayment plan. In addition to these costs, your bankruptcy trustee may also charge small filing fees. If you decide during the process to convert your Chapter 13 filing to a Chapter 7, you will also need to pay a minor conversion fee. However, there is no fee for converting from Chapter 7 to Chapter 13. You may also be required to take financial management courses, which vary in cost depending on what is required.

Average Cost of Filing Chapter 7 or Chapter 13 Bankruptcy

It is estimated that when these costs are added up, the average cost across the nation for filing for bankruptcy can range from hundreds to thousands of dollars, depending on the complexity of your case. While many are quick to think that this is due to attorney fees, the reality is not so. While filing pro se may seem financially desirable as there are no attorney fees, remember that many times these cases are unsuccessful because of the mistakes that can occur. When you calculate the risk of filing alone versus with a trust bankruptcy attorney, you can see the clear money saver as bills will continue to pile, late payments add excessive interests, and creditors will continue to come for their payments. But you may wonder if there are hidden costs to bankruptcy? In general, there are no hidden court fees or sneaky attorney costs, but there are some expenses you may encounter that you didn’t necessarily consider.

Hidden Cost of Bankruptcy

In addition to the costs of filing, hiring an attorney, etc., there are some expenses to remember as you continue in the process:
  • Increased insurance rates. While bankruptcy in itself will not cause your insurance rates to increase, the temporary depletion of your credit score will.
  • Impact on credit score. Remember, for Chapter 7 and Chapter 13 filings, bankruptcy will stay on your credit report for up to 10 years.
  • Penalties for not making monthly payments. If you fail to make your repayment plan work for you, or do not petition the court to modify the plan so you can afford it, you can face penalties from creditors harassing you, to repossession or foreclosure on your home.
While this may seem intimidating, it’s meant to make you mindful of all of the costs of bankruptcy, not just the inherent responsibilities you envelop. If you have questions about the costs of filing for bankruptcy in Columbus, Ohio, you need the compassionate financial assistance of bankruptcy attorney Michael Ryan Jones.

The Jones Law Firm: Cost of Columbus, Ohio Bankruptcy

If you have questions about the cost of your bankruptcy, contact Columbus, Ohio bankruptcy attorney Michael Ryan Jones today. Our free consultation will give you an idea of the form of bankruptcy that is right for you, and any costs associated with it.
Categories: General Bankruptcy