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Is filing for Chapter 13 bankruptcy affordable?

Deciding to take the steps necessary to get finances back on track is a big deal. It can take immense effort to accept that the situation will not get better on its own or even with help from an individual alone. Fortunately, Chapter 13 bankruptcy may be able to help qualifying Texas residents get their affairs in order.

Because financial concerns are already at the forefront for individuals considering bankruptcy, they may worry that they cannot actually afford the process. It is true that there are filing costs, legal fees and other expenses associated with bankruptcy proceedings. For Chapter 13 bankruptcy, the basic filing fees set by the federal court come to $310 for 2018. Depending on the specific circumstances of a case, additional fees may be added.

Because many people struggle to meet even their basic needs when dealing with financial challenges, they may worry that they will have to forgo bankruptcy due to the associated filing fees. However, parties could file a request with the court to pay the fees in installments rather than a lump sum. The possibility for a waiver also exists, but individuals would need to have an income level that falls below 150 percent of the poverty level and have an inability to pay the fees.

When individuals are already facing money problems, they may become very particular about the costs of any action. While the fees and other expenses associated with Chapter 13 bankruptcy may cause some individuals to hesitate, they may wish to remember that addressing the costs could help them come to a more stable financial point overall if their proceedings prove successful. If Texas residents have questions or concerns regarding costs and other aspects of this form of bankruptcy, they may wish to obtain reliable information from local legal resources.

Source: thebalance.com, "How Much Does It Cost to File for Bankruptcy?", Latoya Irby, April 2, 2018

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