Bankruptcy Questions Answered

Peter Gitundu asked:


Bankruptcy gives you an opportunity for a fresh start financially, but it does not come so easily. This is because, you have to part with some money to make the process successful. To cater for the services that you will receive from the court, you will need to pay some specified fees through the court clerk.

If you decide to work with a lawyer during the process, remember that he too will need to be paid.  Most of the other charges you will have to cater for will depend on which type of petition you want to file.  The charges for each chapter of the law are very different from all the others. They are very specific to the circumstances leading to the insolvency.

Other fees that must be catered for are re-opening fees. These are not very commonly talked about because not many cases are closed only to be revisited later. So if you decide to terminate a case halfway through then decide later on to have it followed to completion, you should be ready to pay for this.

If your case falls under chapter 7, the reopening fees are $200. Those for chapter 13 are $150. For the chapter 7 charges, you have to pay up front immediately after reopening the case. As for the other chapter, you can choose to file for a petition asking to be allowed to complete paying for the fees in installments. This means that monthly installments for your debt settlement will include these charges.

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