Chapter 13 bankruptcy starts by filing a form or petition in the area where the debtor resides. The court needs the debtor's net income, plan of payment, credit counseling certificate and payment evidence with the employer testament. Filling this kind of bankruptcy makes your expenses higher because of the cost of court, attorney fees and other payments. To file a low cost bankruptcy you must know how to reduce the cost of filing and attorney fees.
Low cost chapter 13 bankruptcy is available if you know how to plan it. There are also low cost attorneys to make your expenses lower. You can either use an attorney or not depending on your budget. There is no such thing as low cost bankruptcy. Planning and good management makes your expenses low.
- Chapter 13 is better then Chapter 7 bankruptcy in price. There are many bankruptcy forms that you can file. Chapter 13 is the simplest form of the chapter 7 and it is the right bankruptcy form for debtors because of its low payment plan. To file a Chapter 13 bankruptcy, you need $235 for the case to start and $39 on other expenses. Chapter 7 needs $245 to start, $39 on other expenses and another $15 for trustee fee. You can be exempted on paying the following fees if you don't have the money or you don't have the ability to pay. It all depends on your current situation financially.
- Hire a low cost attorney. The filling process is hard if you don't have an attorney to help you. Attorneys know the laws, process and procedures on chapter 13 bankruptcy. They usually cost $500 to $2000 so look for a low cost one. Some attorneys offer free consultation. For hourly paid lawyers, be attentive and focus on what they say to minimize repetition which makes the payment higher.
- Let the attorney help you only in preparing your bankruptcy filling. This will make you pay the attorneys lower because you don't consult with them over and over. Attend the hearing and meet with your creditors without your attorney to lessen the fee. Only consult them if you like to ask questions that may affect your filling. Leave the paper work to your attorney because they know it and you handle the talking.
- Look for other alternatives to hiring a lawyer. You can ask someone who files a bankruptcy form or buy software which can help you in filling the form. Examples of the software's available in the market are EZ-filling, Blumberg software, Base Case and many more. Just search the internet for the list of bankruptcy software's available. Buying software instead of hiring an attorney lessens your expenses. But verbal communication is easier to understand.
- Visit the US Bankruptcy court website and download the no charge bankruptcy forms. Free forms are available on the site whether you want to fill it on your own or with the help of others. Make sure that the following information stated on the form is true or you may have a problem filing your bankruptcy form.