How much does the average bankruptcy cost? Is it possible/advisable to do it yourself?

Question

I am only 21 but I have HORRIBLE credit due to unpaid bills etc. This is the only option it seems to EVER turn that around...

Answer 1

Just from my personal observations.....never file bankruptcy without an attorney.

If you make one single error...file a late form...fill them out wrong....or basically do any of a million things wrong, your BK will be dismissed.

If that happens, you have lost all of your previous court costs to that point and have to start all over.....in 6 months.  You can not immediately file another BK if it was dismissed, no matter how silly or innocent the error.

During this time, you can bet every one of your creditors will be working like mad to sue you and get what they can before you file again.

I know one person who had their BK dismissed because they filed the wrong form.  The trustee dismissed....and the very next day a repo guy came and took his car.

I know it's tempting to try to do it yourself.  You can go and download the forms and look them all over if you want. But about the only time I would ever recommend you doing it is if your financial situation is very straightforward and not complicated at all.  Very few are like that though.

Answer 2

depends on where you live I imagine. Call a legal clinic, they are the lowest price.

Answer 3

It is advisable for you to have an attorney file your bankrupt for you, this is to ensure that everything is included and not one thing is left out, other wise it will be dismissed by the trustee, and if this happens you cannot immediately file again, but must wait a period of time.

The cost to file for a bankruptcy depends upon several factors, is it a simple bankruptcy or is there property involved.

If you have a legal aid office in your state, this is your best bet, if you cannot afford a lot of money.

Best of Luck

Source Licensed Realtor

Answer 4

If you are only 21, then you will be 31 before the bankruptcy falls off your credit report.  In the mean time you will have a very difficult time borrowing money for cars, credit cards, student loans, or a home.   No new mortgage for 2 years and you will have to display good payment record for at least 12 months.  

Potential employers even look at your credit.

Should you find a lender for a car loan or some kind of personal loan, you will take it in the wallet on interest payments.  

Aside from the attorney costs (which you won't put on a credit card) there are a number of other items you will have to deal with...like going to a consumer credit counselor.

Here is some more info on bankruptcy...

Answer 5

I claimed bankruptcy 9 years ago. My advise is do not do it alone. Hire a bankruptcy lawyer and let them handle it. It will make your life much easier. But call a few places and talk to them. It cost you nothing until you acually hire them and you will have a month or two to pay the fee.

Answer 6

Hire a lawyer for sure cause its real tough without one these days since laws has changed.

Answer 7

Definitely shop around. Bankrupcty can range anywhere from $200-$2000 depending on which chapter you file and the attorney. You can file "Pro se" but I don't recommend it unless you have a friend or family member who is familiar with the process.