How much does a bankruptcy cost? Can I make payments?

Most bankruptcy cases can be handled for less than $2000 and some for far less than that.  There are some factors that increase the cost of the bankruptcy.  There is a base charge but if you have multiple cars or a lot of other personal property then the bankruptcy can cost more.

Houses are extra and some people have several.  Houses require valuations, payoff balances and insurance and we have to make sure any equity is protected.  All of these documents have to be sent to the trustee.  This takes extra time so it increases the cost.

Businesses are extra too.  With a business we have to look at your business inventory to list in the bankruptcy and we have to get profit/loss statements to show what income is received from the business.  This takes extra time and effort and thus it costs a little more if you have a business.

If you are filing with your spouse (and you don’t have to) then there is a small charge for the extra person because their income and assets must be included in the bankruptcy along with their debts.  An extra credit report must be pulled for the spouse too.

If you are filing a simple individual case with little of no assets and you have a job or are unemployed with no house then the case can be done very cheaply.

Yes!  You can make payments until the full balance is paid.  The case cannot be filed until its paid for but in the mean time we can stop the creditors from calling you.

I am a San Diego bankruptcy attorney.  For further questions please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.   For a free e-book on “13 things to do to prepare for your bankruptcy filing” please e-mail me at farquharesq@yahoo.com.

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