How Much Debt Do You Need To File Bankruptcy

Getting big profits is one of the hopes for everyone who wants to open and run a business. But not always the managed business runs smoothly. Losses will also color business trips. It is undeniable that in running a business and business, losses are certain to occur and become a risk that inevitably must be passed. As a businessman, failure or bankruptcy can be a frightening shadow considering that there is not a small amount of capital that has been spent, both financial capital, time, and energy. The question here is "How much debt do You need to file bankruptcy?"

Illustration (Picture: phoenixbankruptcy.co)

Bankrupt ventures and lots of debt are often the starts of a financial downturn for many entrepreneurs. Not only for beginners, the risk of a bankrupt business and a lot of debt can also haunt anyone, even an expert entrepreneur. Various factors can certainly be the cause of a bankrupt business because running a business is not an easy thing.

How Much Does It Cost To File Bankruptcy

What is bankruptcy? Bankruptcy is a condition when a company suffers heavy losses that make its financial condition unhealthy and force the company to stop operating.

A company that is declared bankrupt is certain that its financial condition is not healthy so that it can no longer finance the company's operations.

You can file for bankruptcy because you have difficulty paying all your debts, but unfortunately, filing for bankruptcy is not free. The cost of filing for bankruptcy depends on the type of bankruptcy you use.

Bankruptcy Filing Fees

It costs $335 to file for Chapter 7 bankruptcy and $310 for Chapter 13 bankruptcy. This is the filing fee requested by the United States Courts. If a lawyer or bankruptcy filing service tells you that your bankruptcy could be filed for less than this, chances are it's a scam.

This is the basic filing fee. Certain actions with your case may incur additional charges. For example, there is an additional cost for converting a Chapter 13 case to a Chapter 7 case, reopening a bankruptcy case, or for a payment returned due to insufficient funds.

Installment Payment and Possible Release

These fees usually occur when you file your bankruptcy application, however, you may be able to ask the court to allow you to pay the fees in installments or Ask for the fees to be waived. To be eligible for a fee waiver, you must not pay fees, even in installments and your income must be less than 150% of the poverty line.

The U.S. Department of Health and Human Services publishes the federal poverty rate, which varies depending on the number of people per household.

Required Credit Counseling Fees

Before filing for bankruptcy, you must attend a credit counseling session approved by the court.

In addition, you must take a financial management course before your bankruptcy can be fired. These courses usually come at a small cost from the service provider. The cost of the course is usually less than $100. The U.S. Department of Justice website has a list of approved agencies in each state. Visit their website to find the cost of the course that their bankruptcy should predict.

Attorney's Fees

If you have hired an attorney to help you file for bankruptcy, you will also have to pay attorney fees. Attorneys' fees vary widely depending on the country, attorney, and the complexity of your insolvency case. Expect attorney fees to range from a few hundred to several thousand dollars.

Don't let the potential cost of filing for bankruptcy scare you away from that choice. Many lawyers offer free or discounted consultations to help you figure out if you need to file for bankruptcy and estimate the total cost of filing the bankruptcy if you need to file a file. You can at least meet some lawyers who offer free consultations to see your options. You may be able to pay your attorney in installments, but be aware that lawyers should only spend as much time on your case as you pay for. Once your followers run out, you'll need to make another payment to continue the work on your case.

Hopefully, the information about "How much debt do You need to file bankruptcy" was useful and became a reference for you.

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