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How Much Does it Cost to File Bankruptcy in New Jersey?
When you file for bankruptcy, you are often struggling to overcome the fees and debts that have smothered your financial status, so when you are offered a solution to escape that debt, your first question is “Well, how much will it cost me?”
Ultimately, bankruptcy will probably save you more than it will cost you. If your debts are piling up and you stand to lose your house, your car, your property – then filing for bankruptcy is a small price to pay. However, there are fees along the way that you will need to make to push the process along.
How Much Will Credit Counseling Courses Cost?
The first major expense related to bankruptcy is the credit counseling process. In order to go forward with bankruptcy, you will need to undergo a credit counseling course within 180 days before your initial filing.
The counseling will be done at a government-approved program. The session will typically last between 60 to 90 minutes and can take place either in person or remotely. You will also take a counseling course following the filing of bankruptcy, known as Post-Filing Debtor Education. These courses do cost money.
Some attorneys will offer discounts or digital codes to reduce or eliminate the cost of these courses. These are only issued if you work with certain attorneys. Some inexpensive attorneys will either refuse to issue or choose not to support you in this process. If you cannot afford the counseling course, you will be administered a waiver.
The price for these courses can vary, depending. On average, the whole course can cost anywhere between $15 to $100 dollars. On average, the Federal Trade Commission claims you will probably pay approximately $50 for Pre-Bankruptcy Counseling, followed by an additional $50 for the Post-Filing Debtor Education.
How Much Are Bankruptcy Filing Fees?
When you first file for bankruptcy, you need to make a small payment for the initial filing of all related documentation pertaining to the bankruptcy. This is what technically initiates the bankruptcy process.
In the state of New Jersey, the initial filing fee for a Chapter 7 Bankruptcy is $335, while the initial filing fee for a Chapter 13 Bankruptcy is $310. This includes miscellaneous administrative fees, as well as, for Chapter 7 Bankruptcy, a trustee fee.
Chapter 11 Bankruptcy – open usually just to businesses – will cost far more to file. It can cost you, depending, either $1550 or $1717. However, in the case you file business bankruptcy, the entire process will probably be more expensive. We will discuss Chapter 11 Bankruptcy separately to discuss the unique financial costs associated with it.
How Much Will A Lawyer Cost for Chapter 7 and Chapter 13 Bankruptcy?
Ultimately, it is difficult to determine how much a lawyer will cost for a Bankruptcy case. As every case is different, the expenses for lawyer fees vary from case to case. Some lawyers will charge surprisingly low fees, while others might charge more.
On the surface, you might want to go for the less expensive lawyers to save a few dollars, but this might not work out well for you in the long run. There are several dangers to hiring a cheap, inexpensive firm. They might not have many successes, might misfile documents, or fail to communicate your needs. The more expensive lawyers tend to be more experienced, and, ergo, better suited for your needs as an individual or business.
Another problematic element to inexpensive firms is how they deal with a huge volume of cases which often receive insufficient attorney involvement or supervision. Some firms help you out on paper, but you do not receive any of the benefits you might otherwise get when an adept attorney reviews the case. At Scura, you receive the time and attention you deserve. We ensure every debtor who passes through our doors leave in a better situation, having been guided down the path toward a debt free future. We provide a complete solution.
One way to judge if a lawyer is right for you is to look up the accolades and reviews left by former clients. At Scura, you would receive help from lawyers who have helped several people in need of bankruptcy support. We encourage you to look at the accolades and reviews left behind by previous Scura clients.
Ultimately, it is difficult to determine how much a lawyer will cost because, of all the costs pertaining to bankruptcy, this is the only one that is not set in stone.
How Much Does it Cost to File Chapter 11 Bankruptcy For My Business?
Chapter 11 Bankruptcy tends to be more expensive of a process than either Chapter 7 or Chapter 13 Bankruptcy, in part because Chapter 11 Bankruptcy, also known as Business Bankruptcy, centers around debt reorganization for larger businesses.
Once the bankruptcy reorganization plan is approved and underway, the debtor requires the bankruptcy court's approval of business transactions that are not ordinary. They must comply with the U.S. trustee's monthly reporting requirements. A committee of creditors will be assembled and have the power to appoint professionals to perform tasks through the bankruptcy process. However, despite the creditors hiring these professionals, the debtor must pay for said professionals. Several smaller businesses cannot afford the costs of Chapter 11 Bankruptcy, nor might they be able to effectively conduct business with so many limitations.
Thankfully, now there is Subchapter V Bankruptcy. Subchapter V is also referred to as the Small Business Reorganization Act (SBRA). The SBRA was first approved in February 2020. As the name suggests, this simplified process for bankruptcy is designed for small businesses to reorganize following financial hardships. This process reduces many of the more expensive costs of Chapter 11 Bankruptcy for smaller businesses.
How Valuable is a Free Consultation?
One thing that won’t cost money, however, is your first free consultation with Scura. At Scura, we want to make sure your first consultation to discuss your bankruptcy options is completely free. We can discuss which bankruptcy chapter is right for you, as well as what is best suited for your needs.
Ultimately, the choice between Chapter 7 and Chapter 13 Bankruptcy is not one that you should make lightly. You need to take into consideration all your assets and property before making a decision, as well as consulting a Bankruptcy Attorney. You need someone on your side to help you through the complicated process of filing for relief.
This is where we come in. The attorneys at Scura, Wigfield, Heyer, Stevens & Cammarota LLP can help. Please call our offices to schedule a free consultation and hear your options.
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