Bankruptcy, a situation where a person is unable to pay any more debts, and the bank or anything that the person has taken the amount from will cease everything, such as home and other things. Many people do prepare to file bankruptcy since sometimes there are circumstances in life that people fall into financial crisis, such as losing the business, illness or severe injury, maybe many bad situations arrive at once.

What is Bankruptcy?

Bankruptcy offers the individuals to get depended on the creditors and gives them a chance to make everything fine as it was before. Now, you got think about the cost you need to pay to file bankruptcy, and the cost varies with certain factors such as the area your property is, the structure of your case, and of course the experience level of the lawyer you hire. A typical lawyer would charge around $1,200 and $1,500 for Chapter 7 bankruptcy services.

Chapter 7 and the fees

Before you file bankruptcy, one should clearly understand what is a chapter 7 bankruptcy? Firstly, this process may take up to four to six months, of course not the exact, since many things depend on your case. Any person can file this, who owns a property or business. To file this, you need to fill a few forms, which has your information such as your property, current income, monthly expenses, your debts, the property you owned or sold any time and few more things that would be related to your bankruptcy. The average fees of the attorney would be $1,250. You can expect to pay more if you are residing in a metro or a developed area than in small areas. Also, for your benefit, the court does not want people filing bankruptcy to pay too much amount in attorney’s fees. To prevent this, there is something known as “Disclosure of Compensation”, where the attorneys must report the number of fees they charge to their clients on a bankruptcy form.