The Out-of-Pocket Costs | How to Pay When You’re Already Struggling?
When you’re struggling to make ends meet, and considering bankruptcy, another expense may seem like the last thing you need. Though bankruptcy may seem like the best way to get a fresh start, there are costs to bankruptcy—filing fees, the cost of mandatory credit counseling, and attorney fees. How do you make those payments when money is already tight or simply not there?
Options for Filing and Other Administrative Fees
The current fees to file bankruptcy in Texas are:
- New Chapter 7 petitions—$338
- New Chapter 13 petitions—$313
In addition, the typical cost of credit counseling is $50, and the debt education course required of anyone filing bankruptcy typically costs between $50 and $100.
When filing your petition, you can ask the court if you can pay the filing fee in installments. However, you must typically pay the full filing fee in no more than four installments over a period of 120 days. In addition, you can ask the court to waive the filing fee. To be eligible for waiver, your income must fall below 150% of the federal poverty level.
Options for the Cost of Legal Representation
In virtually all bankruptcy filings, legal expenses make up the bulk of the costs. With a Chapter 7 filing, you must pay the attorney fee up front, as the fee could be discharged in bankruptcy. However, with Chapter 13, you can customarily pay some of the fee up front and the balance as part of your reorganization plan.
Other options for legal counsel include representation by legal aid or an attorney who will work on a pro bono (no fee) basis.
Contact an Experienced Rockwall, Texas, Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, and videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
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