Diana Metz`s Finance Blog

Filing bankruptcy is becoming more and more common, given the state of the economy in the United States. Many people are finding themselves buckling under the weight of all their financial obligations and filing bankruptcy may be the only way out. But there is a big obstacle in the way of discharging debt: the Cost of Bankruptcy. Hiring an attorney can come at a high price, and not everyone feels competent to do the forms and filing by their self. But by doing the necessary research, a person can minimize the price.

The basic fees to file bankruptcy on your own average about $400. Hiring an attorney can bring the Cost of Bankruptcy into the thousands. If someone decides to use an attorney, they should never just walk blindly into the first office they see and hire someone. Most lawyers will offer a free initial consultation, and it’s worth it to shop around and get an estimate of price. Some lawyers may charge less than a thousand dollars, while others may charge 3 or 4 thousand dollars.

Many people choose to file their own bankruptcy paperwork to save money. For those that go with this option, research is critical to avoid errors. Doing it yourself is the absolute lowest Cost of Bankruptcy but is more risky if a person has no legal knowledge. But many people have successfully filed on their own, and there are numerous kits and websites available to help someone through the process. This would also be a good time to consider the free consultation with a lawyer, to get an idea of how complex the bankruptcy will be and gain advice before going ahead on your own.

People with insurmountable debt often find that bankruptcy is the only way out. But paying for that bankruptcy usually creates another financial hardship. When someone is struggling to pay their regular debts, trying to find hundreds or even thousands of dollars to file bankruptcy is frustrating.  But a good way to pay the Cost of Bankruptcy is by making payments. Most courts will allow a person to make payments on the filing fees, as do most attorneys. It is critical to explore all the options before deciding to file bankruptcy.