The Cost of Bankruptcy

Bankruptcy isn't cheap by any definition. That's another thing that made it such a difficult decision for us. In our case, we'll be filing for Chapter 7 bankruptcy, which will completely relieve almost all of our debts. In our state, the total price tag (court costs, filing fees, and Attorney fees) will be $1500.00. Granted, that's much less than the sum of all the debt we're seeking relief from, but if I had $1500.00 to plunk down at one time, I wouldn't be this far behind on all my bills.

It's almost cost-prohibitive. Those who really need the help that bankruptcy relief provides can't afford it. Those who can afford it could likely apply that cash to outstanding debt.

In this case, we'll be making payments to our Attorney until we reach the $1500.00 bill. Naturally, dealing with someone who is filing for bankruptcy, he isn't extending us any credit. He won't actually make the filing until the whole bill has been paid. But what he does do for us, now that we've sent him the first $100.00 toward the fees, is field calls from debt collectors, relieving us of the hassling phone calls. Having taken care of some of the unwanted calls already, I can honestly say it's a great relief to not have to worry about the phone ringing anymore.