admin on February 26th, 2009
If you are thinking of filing for bankruptcy get a free bankruptcy review, or file yourself with our bankruptcy forms for just $19.95. Thanks for visiting!
The new bankruptcy laws have increased the cost to file bankruptcy due to the additional work attorneys, and those filing bankruptcy have to do in order to complete the bankruptcy petition, and have it accepted by the courts. Below you will find a breakdown of all the costs associated with filing bankruptcy.
Pre-Bankruptcy Credit Counseling - As we detailed in our post on the requirements of bankruptcy credit counseling and personal financial management course, every filer must complete a credit counseling course within 180 days before filing bankruptcy. The course fee varies depending on the location, but the average cost is about $40.
Bankruptcy Petition Preparation - The Federal Bankruptcy Code allows bankruptcy filers to choose to prepare their bankruptcy petition themselves, hire an attorney, or hire a non-attorney bankruptcy petition preparer (NABPP). If you plan on filing bankruptcy by yourself you will have to buy the official bankruptcy forms ($19.95), find free bankruptcy forms online ($0), or buy bankruptcy software that will help walk you through the process ($49.95). These costs are minimal, but if you are at all uncomfortable with completing your bankruptcy petition by yourself, you will likely want to hire an attorney.
For a Chapter 7 bankruptcy, the average cost for an attorney is $1500, and for Chapter 13 bankruptcy the average cost is now around $3500 due to the extensive paperwork and background checks that are needed to complete the bankruptcy petition. In some circumstances your attorney costs can be included in the bankruptcy filing, so it’s important to get all your options. If you are knowledgable about bankruptcy law but want a professionally prepared petition you can hire a NABPP. The average cost of an NABPP is $150 as it is typically set by each state, but some bankruptcy districts are extremely hard on filers who use NABPP’s as they view them as taking business from attorney’s and may give you a hard time about your petition, even if everything is correct.
Bankruptcy Petition Filing Costs - Once your petition is prepared, there are court filing fees that must be submitted when you file your forms. There are options for pay in installments, and other options, but we won’t discuss those here. The filing costs for bankruptcy petitions are $299 for a Ch 7 and $274 for a Ch 13.
Personal Financial Management Course - After your bankruptcy petition is filed you have one more fee to go. Once your forms are accepted you will get a notice in the mail that you need to complete the personal financial management course. Just like the credit counseling course, the cost will vary depending on the location of the course but the average cost is around $30.
Total Cost To File Bankruptcy - If you complete everything yourself you can file bankruptcy for as low as $369, and if you use a bankruptcy attorney, filing bankruptcy can cost you upwards of $3869 or more.
admin on December 30th, 2008
ING Direct awarded 500 of its mortgage holders with one month’s mortgage payment. In response to the nation’s foreclosure crisis, the Dutch based ING Direct forwent its holiday party planning to conduct a contest geared to providing one month’s mortgage payment to its mortgage customers. Each participant wrote a 250 word essay sharing their reason to receive the one month’s mortgage payment. ING Direct used the over $800,000 office holiday party budget to fund the contest.
Recipients of the awards were varied from compelling stories of cancer survivorship to the financially responsible seeking relief. ING has over 83,000 mortgage customers, but only received 5500 essays for the contest. ING currently owns slightly less than 2% of the nation’s mortgages equaling $17 billion. In October, ING Direct received $14 billion dollars in aid from the Dutch government.
admin on December 8th, 2008
Time is running short on a financial rescue plan for the top 3 US automakers. Congress is ruminating over industry testimony and expert studies to determine the best course of action to help the US automakers from financial failure. Most supporters of government intervention are encouraging a form of government packaged bankruptcy for the automakers. Because of the uncertainty of the industry’s financial future, the auto manufacturers are being required to pay by cash to all suppliers. These cash payments have placed an even greater strain on the already cash strapped corporations and their suppliers.
The industry indirectly employs over 2.3 million people in the US. Many of these employees are members of the United Autoworkers Union, thus prompting the union to pledge supportive financial measures to aid a bailout by the government. Although a bankruptcy plan has not been entirely ruled out by the top automakers, there is also an understanding that a bankruptcy workout plan with the government will take some time.
The plan the government worked for Chrysler in the 1980’s took nearly seven months to finalize. The industry could be without cash, to continue operations, within a few weeks. Although the arguments whether to file bankruptcy or support a government bailout continue to flurry, the fastest growing number of advocates are requesting immediate intervention regardless of the actual plan chosen to follow.
admin on November 26th, 2008
Fannie Mae and Freddie Mac have suspended all forclosures starting November 24 util January 9. The nation’s two largest owners of residential mortgage are preparing to review files for mortgages in need of modification. FNMA and FHLMC are both offering to modify mortgage loans to homeowners with at least 3 months deliquency. The key qualifier to the loan modiification is teh new loan must not exceed 38% of the household income before taxes and the loan must be owned by Fannie Mae or Freddie Mac.
admin on November 26th, 2008
Vermont’s bankruptcy rates have surpassed the national average. The small northeastern state has experienced a 44 percent increase in bankruptcy filings since this time last year. Of the various forms of bankruptcy, Chapter 7 bankruptcy filings have increased by 66 percent in Vermont over the past 12 months. Chapter 7 bankruptcies provides its petitioner the ability to liquidate non exempt holdings to satisfy any debts and receive a financially “fresh start.”
Chapter 13 bankruptcy allows the filer the ability to maintain property and re-organize debt and allowing many its filers maintian their homes. In Vermont, chapter 13 bankruptcies are not keeping pace with the national average, but have seen a signficant increase. Vermonters worsened and record economic state is seen as a result of the nation’s fallen home prices, flattened incomes and dried lending channels
