Chapter 7 costs a lot less because attorney fees are much less than in Chapter 13
St. Louis, MO (PRWEB) June 03, 2014
On June 1, 2014, the U.S. Bankruptcy Court will increase the filing fees for Chapter 7 and Chapter 13 bankruptcy. It will cost $335 to file for Chapter 7 bankruptcy, and $310 to file Chapter 13 bankruptcy.
Charles H. Huber, a St. Louis bankruptcy attorney, says that individuals thinking about filing for bankruptcy should consider the pros and cons of Chapter 7 and Chapter 13 before filing -- especially with the filing fee increase in June.
"I have noticed that some people are not properly evaluating their bankruptcy choices and end up choosing an option that may not be right for them," Huber said.
According to Huber, Chapter 7 bankruptcy offers some advantages. It is the quickest bankruptcy option available, usually taking about four months to complete. It also relieves debtors of otherwise dischargeable debts, allowing them a fresh start.
"Chapter 7 costs a lot less because attorney fees are much less than in Chapter 13," says Huber. "You also do not pay anything to your unsecured creditors during a Chapter 7 bankruptcy because most of your debts are wiped out."
While Chapter 7 bankruptcy allows individuals to liquidate dischargeable debts, they may also have to surrender some of their possessions to help pay off the debts.
Chapter 13 bankruptcy, in contrast, allows debtors to keep their property and create a manageable debt repayment plan with the court. Chapter 13 bankruptcy takes much longer to complete than Chapter 7 bankruptcy -- it can be as long as three to five years before the process is finished.
Huber said there are typically six scenarios in which people would file Chapter 13 bankruptcy:
1) If an individual has previously filed Chapter 7 bankruptcy within the last eight years.
2) An individual might make too much money to qualify for Chapter 7 bankruptcy.
3) An individual might own assets that are at risk of being sold if they file Chapter 7 bankruptcy.
4) The person may not have a lot of unsecured debt to wipe out -- but they would benefit under Chapter 13 bankruptcy by paying off secured debts on more favorable terms.
5) Under Chapter 13 bankruptcy, an individual is sometimes able to strip off or cancel a second mortgage on a house.
6) An individual wants to repay his or her creditors.
Huber reinforces the fact that it's important for people to do their research on their options for bankruptcy before filing.
"Bankruptcies have decreased in my area of practice over the past year," Huber explains. "In connection with the fees going up, it is important for people thinking about bankruptcies to thoroughly consider which type of bankruptcy they should file."
The Law Office of Charles H. Huber is a St. Ann, Missouri based private law practice that provides legal services to clients with bankruptcy and traffic issues. With over 30 years of experience, the Law Office of Charles H. Huber has consistently provided bankruptcy help. Charles H. Huber is a member of the Missouri State Bar Association. For more information on the Law Office of Charles H. Huber, please call 314-298-0305, or visit http://www.charleshuberlaw.com.