What are the costs of filing for Chapter 7 bankruptcy?

On Behalf of | Sep 5, 2014 | Chapter 7 Bankruptcy |

Filing for bankruptcy is something that is done when mounting debt is too much to overcome, but the fact of the matter is that you do need some money up front to file for it at all. Understanding these costs can help you make a wise decision about what you should do, and it can help you prepare so that you are really ready to file for Chapter 7 bankruptcy and start a new stage in your financial life.

While these are not all of the costs that you may see, they are some of the main ones to consider in Texas.

First of all, there is a case filing fee, which the court is obligated to charge you. This fee is going to run you $245. You must pay it to put in the paperwork so that it can then be considered.

On top of that, there is an administrative fee for the work that has to be done on their end to file it. This is a miscellaneous fee, so you may not get a specific breakdown of what it is for, but it is also not too much. It will only cost you $75 more.

Furthermore, you have to pay another $15. This small fee is known as a trustee surcharge.

In the majority of cases, you are going to see a clerk to file your paperwork and declare bankruptcy. This is the point at which you need to have this money — the total of these three costs is $335 — to give to the clerk. However, it is possible to ask to pay it off in various installments, if you would like.

Source: US Courts, “How Chapter 7 Works” Sep. 05, 2014