April 21, 2024

Costs Involved with Bankruptcy Process and How to Plan Easily?

Today those people who are finding it very difficult in order to repay the loan amount, there is a legal proceeding available today in the form of bankruptcy. It begins with the petition filed by the person who has to pay the loan amount to the creditor. When the process starts, all of the assets of debtor are measured and properly evaluated. In order to take the debtor out of this condition, his assets are evaluated and then it is used to repay a portion of debts that are outstanding. When the complete process is successful and he pays all of the debt amount, the debtor is relieved of the all the obligations of repayment of the loan amount.

If you are wondering that how much is a New York bankruptcy, then this guide is going to help you find out all the options that you got. Though bankruptcy is a legal process but it also relieves you from all the financial debt crisis and pressure. The cost of complete bankruptcy process depends on your location and also the level of bankruptcy that you choose and file.

Preparation of Plan

Preparation of the complete process and related documentation is one of the most important parts of the complete process of bankruptcy and for that you need to get the services of an attorney or a lawyer. Having complete knowledge of your case is important and only an attorney is going to provide you all the related documents and he can also make your case stronger.

Type of Bankruptcy

Type of bankruptcy is one of the most crucial things when we talk about calculating the amount of money that you have to spend on the complete process. In usual cases, the bankruptcy cost from around $2000 to $3000 and that is also in case of chapter 7 bankruptcy. In case of chapter 13, you can expect to pay around $3000. Also, if we talk about Chapter 11, that is mostly for businesses and you can expect its cost around $10000.

Court Fees

Court fees is also involved in the process because whenever you first time file the case, then it is your duty to pay some amount of money and that is usually around $300. You should also understand that whenever you repay the dues in the form of liquidation of your entire assets. You will have zero net worth and you are also bankrupt in that case.