A Few Things Springfield Debtors Should Know About the Cost of Filing for Bankruptcy

One of the questions most often posed by people thinking about filing bankruptcy concerns the cost of the process. Each type of bankruptcy protection available to individuals comes with court fees that are established by law.

Most debtors also find it helpful to engage the services of a lawyer who will handle the heavy lifting on the legal side of things. Working with a Personal Bankruptcy Attorney in Springfield Missouri is the single best way to improve the odds of a successful filing.

Naturally enough, people whose financial situations are such that bankruptcy becomes attractive often feel uncertain about paying for the assistance of a lawyer. In most cases, though, the cost of putting a lawyer on the case will be entirely reasonable and easy to justify.

A Proven Way to Make Filing for Bankruptcy Easier

Debtors are not required to be represented by attorneys when they choose to file for bankruptcy protection. The statistics consistently show, however, that debtors who have access to legal counsel and representation have better odds of obtaining the relief they seek.

A debtor will often have relatively little in the way of liquid assets when the time to file for bankruptcy arrives. That can make it seem as if going without the services of a lawyer might be the best option. In practice, there are almost always ways to make the necessary financial arrangements.

A Person's Choice of Bankruptcy Style Will Impact Overall Costs

Individuals can opt for the same type of court-directed reorganization often sought by troubled corporations. This Chapter 11 style of bankruptcy is complicated and specialized enough that very few people opt for it, however.

The vast majority of individual debtors who choose bankruptcy prefer the types described under Chapters 7 and 13 of the relevant federal code. Chapter 7 provides for a court-directed form of debt liquidation, while Chapter 13 focuses on negotiation with creditors instead.

The Cost To File Chapter 7 Bankruptcy in Springfield Missouri can end up being $1000 or less, depending upon the details. Several hundred dollars of this sum will be paid to the court, with the rest funding an attorney's work.

Because the process tends to be more complicated, filing for Chapter 13 protection is normally somewhat more expensive, although not always. In some cases, the Cost For Filing Chapter 13 Bankruptcy in Springfield Missouri will even be a bit less than with Chapter 7, thanks to a slightly lower fee to be paid directly to the court.