You may be considering bankruptcy as a way to solve your debt problems. This is certainly an option that you should consider if you’re facing an overwhelming amount of debt and don’t see any other way out. Of course, you should speak to a lawyer and not rush into things prematurely. However, if you decide to go this route, you may be wondering how much does it cost to declare bankruptcy.

Well, the cost of bankruptcy depends on which kind you will be filing. You’re probably planning to file chapter seven bankruptcy, which is the kind that tries to eliminate your debt entirely. Chapter seven cost $274 at the time of this writing. The price for chapter 13 bankruptcy, which creates a payment plan for your debt, is currently $189.

At first glance, this doesn’t seem like a very large amount to pay in order to get a fresh start financially. Of course, if you’re looking to declare personal bankruptcy, then any expense is going to be significant for you. Still, the above fees are not outrageous considering what you’re getting in return, which is a second chance in your financial life.

In addition to the filing fees, you’ll also have to pay your lawyer fees. By now you may start thinking that this whole thing is more trouble than it’s worth, but hang in there.

It’s true that lawyer fees can be expensive, and the new bankruptcy law makes the need for a lawyer greater than ever.

However, you shouldn’t think that bankruptcy is not an option because of the cost involved. After all, the process is designed to bring you relief even if it could have long-term consequences for your credit. The main question to ask yourself is whether bankruptcy is the way to go, and you shouldn’t try to answer this question without a good amount of research and legal advice.

The good news is that once you file for bankruptcy, the bill collectors have to stop contacting you (at least until your case is over). This is the law.

If you were successful in wiping out your debts, you won’t have to worry about these anymore. Getting rid of these other debts should clear up enough funds for you to pay your lawyer fees (especially if you work out a payment plan with your attorney).