Cost Of Filing Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a legal procedure that rids of the debt against the person who is filing for it. The court uses some of the assets on the name of the person who is filing for bankruptcy, liquidizes it and then disburses of the debts. The name of the assets that have to be liquated is given by the person who is filing for bankruptcy. |
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If the assets have been liquidated and the debts have been discharged, then you are free of all other consumer debts as on that day. You would no longer be liable to pay the debt after the bankruptcy case. However, if you incur any fresh debts after the bankruptcy was filed, then you are still liable to pay off the amount.
When the court liquidizes the asset it may get a certain value and all the debts are paid off within the available amount. Even if there is more liability they are cancelled since you have liquidated your assets.
The costs of filing for Chapter 7 bankruptcy are less than Chapter 13. It is the quickest and easiest way to file for bankruptcy. If you are filing for it individually then you may be spending an amount of $250 or less in filing costs and court charges. However, if you are filing through a lawyer, which is highly recommended, then the filing costs and the lawyers fees out together can come to $1500 or more. The costs of filing for bankruptcy basically depend on the kind of procedure you are following.
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