How much will a bankruptcy cost?

January 14, 2008 11:59 AM

How much should a personal bankruptcy cost in Michigan?

I know that bankruptcy is not a good idea and believe me I have exhausted all other options. I am going to file a Chapter 13 bankruptcy which includes me and my wife. One attorney that does television advertising in my area told me over the phone that my only out of pocket cost would be $594.00. I have heard from a few other people that this type of thing should cost around $2000. Unfortunately, no other attorney will give me any type of price without an in person consultation. I just want to know what the ball park price for this is going to be and also if anyone has any experience with a reputable bankruptcy attorney in the Metro Detroit area.

posted by Bjkokenos to Work & Money (3 answers total)

I can say from experience that a Chapter 7 bankruptcy in the Los Angeles area costs around $2000, regardless of the attorney, so I'd say the $2000 that you heard about is pretty much ballpark.

The $594 one might be with a paralegal rather than with an attorney. Some people choose to go this route, but from what I understand it's taking a bit of a risk. Filing fees alone run around $300, so I'd be wary!
posted by chez shoes at 12:35 PM on January 14, 2008

Sorry to piggyback, but they really charge you to have no money in America?
posted by bonaldi at 12:57 PM on January 14, 2008 [2 favorites]

bonaldi: they're not charging one to have no money; they're charging one to have one's debts cancelled/absolved/closed. It's a court preceding where one has to proove one's current assets, projected future earnings, current living expenses and compare that against current debts and one has to show that there isn't a reasonable way that one can pay off the debts.

So rest assured, that if one isn't spending money that one doesn't have, it sill is free to be pennyless in America. So far.

Well, just don't walk into a store pennyless and touch anything.
posted by nobeagle at 1:12 PM on January 14, 2008