While many view it in an unfavorable light, the fact is that bankruptcy is a beyond useful tool to get out of debt and regain financial stability. However, it’s also the fact that the filing process is convoluted and can make even the most basic aspects confusing.
That’s why, today, instead of delving deep into the legal complexities of the issue, we’ll be focusing on the most mundane aspect of Chapter 7 bankruptcy in San Diego: financial considerations and the costs of the filing process itself.
How much does it cost to file for bankruptcy in California?
Many benefits of bankruptcy, such as automatic stay and debt discharge, come into effect only after successful filing. This means that you’ll still be obligated to pay some fees, most of which are associated with or necessary to begin the process. Factors that contribute to the total cost of filing for Chapter 7 include:
Filing fees
As of 2023, the filing fee for Chapter 7 bankruptcy is $338. Even if you cannot afford to pay, that’s no reason to panic. You’ll still be able to start the process by utilizing one of the following options:
- If your income is less than 150% of the federal poverty guidelines you may be eligible for a fee waiver;
- If your income is above the 150% threshold, but cannot pay the full sum right away, you can petition the court to split the fee into four easier-to-manage payments.
As for choosing these options, they’re included in the filing form by default, so all you need to do is check out the one that suits you best.
Attorney fees
Given the convoluted nature of the bankruptcy process, hiring an experienced attorney is always highly recommended. However, lawyers do come with associated fees, unless by some miracle, you manage to find someone who works pro bono and isn’t already swamped.
That said, attorney fees typically depend on the complexity of your case, their experience, and the specific part of California you’re in. Still, most lawyers in San Diego decide to go with flat rates which average at around $1,500.
While hiring legal representation might seem like unnecessary racking up of debt, it is anything but. Having an experienced attorney will significantly speed up the process and ensure the benefits go into effect sooner, all while giving you security and peace of mind.
Educational courses
The state of California mandates that you complete Credit Counseling and Financial Management courses before and after filing for bankruptcy.
These courses start as low as ~$20 per pre-filing class and ~$15 for post-filing classes. Some organizations even offer one or more free classes, so it pays to do a little digging.
It should be noted that, if you’re a low-income filer, there is a possibility to have this requirement weaved. Additionally, if you cannot finish the course before filing, despite your best efforts, you can also petition the court to allow you to take the courses after filing.
Miscellaneous fees
Throughout your Chapter 7 process, you’ll incur some additional costs, primarily for things like obtaining credit reports, notary fees, and related documentation costs. While these fees are negligible compared to the others on this list, they still bear mentioning by being unavoidable.
Where do I file for bankruptcy in San Diego?
Located in Downtown San Diego, the Jacob Weinberger US Courthouse serves as The Bankruptcy Court for the Southern District of California, including San Diego and Imperial Counties.
Who to turn to for help with Chapter 7 bankruptcy in San Diego & near me?
Whether you need comprehensive assistance filing bankruptcy or mindful guidance through the rest of the process, you can’t go wrong turning to the Bankruptcy Law Offices of Mark L. Miller. With more than 25 years of experience dealing with creditors and banks, we do more than just handle the paperwork.
Our adept attorneys empower clients with knowledge of various aspects of bankruptcy, helping them take full advantage of exemptions, advising them on how to rebuild their credit scores, and ensuring that Chapter 7 has a positive impact on their lives. Reach out today!