The Cost of Filing Bankruptcy - Is it Free?
Some people have the misconception that filing bankruptcy does not cost anything, which is not true.
Depending upon the state you are living in, the legal processes in this regard may vary.
You may have to pay different types of fees.
The court may waive some of those fees, but there are a couple of fees that cannot be waived.
It means filing your petition to be declared as bankrupt can never be completely free.
Following is a brief rundown on the various costs associated with the process.
Court Fees The court fee does not always remain the same.
In the last few years, it has kept increasing with every passing year.
Therefore, make sure that you have the updated information on how much amount is charged by the court in your state for filing bankruptcy.
The good news is that the court usually waives this amount for those who have a low income.
You will have to use the form EX160A in order to apply for such fee exemption.
However, if you are not sure whether you qualify for such exemption, you are recommended to get things clarified by contacting the concerned staff at the court.
The staff will get you the true picture.
The Fee Charged By The Official Receiver The Official Receiver's fee is the largest amount of fee involved in this process.
Regardless of whether you have a low income or are entitled to certain income benefits, this amount can never be waived.
You will have to pay the fee at the time of filing your petition at the court.
The Official Receiver is the person that the court appoints to liquidate all your assists in order to get the money needed to pay off your creditors.
This way, he/she actually acts as your trustee.
In other words, when it comes to filing bankruptcy, you will have to pay to someone who is going to dispose off your assets.
You will no longer need to deal with your lenders directly - the Official Receiver will do it on your behalf.
Additional Costs Depending upon your specific case and the state you belong to, there can be some additional costs as well.
In general, you will be liable to pay a small amount of fee in case the affidavit has been submitted in the high court.
However, you will not be charged any amount apart from the Official Receiver's fee and court fees if the affidavit has been submitted in the County court.
If you are filing bankruptcy as partners in a business, all the partners will be liable to pay the costs individually.
Likewise, if you are filing the petition as a married couple, both of you will have to pay the fees.
Depending upon the state you are living in, the legal processes in this regard may vary.
You may have to pay different types of fees.
The court may waive some of those fees, but there are a couple of fees that cannot be waived.
It means filing your petition to be declared as bankrupt can never be completely free.
Following is a brief rundown on the various costs associated with the process.
Court Fees The court fee does not always remain the same.
In the last few years, it has kept increasing with every passing year.
Therefore, make sure that you have the updated information on how much amount is charged by the court in your state for filing bankruptcy.
The good news is that the court usually waives this amount for those who have a low income.
You will have to use the form EX160A in order to apply for such fee exemption.
However, if you are not sure whether you qualify for such exemption, you are recommended to get things clarified by contacting the concerned staff at the court.
The staff will get you the true picture.
The Fee Charged By The Official Receiver The Official Receiver's fee is the largest amount of fee involved in this process.
Regardless of whether you have a low income or are entitled to certain income benefits, this amount can never be waived.
You will have to pay the fee at the time of filing your petition at the court.
The Official Receiver is the person that the court appoints to liquidate all your assists in order to get the money needed to pay off your creditors.
This way, he/she actually acts as your trustee.
In other words, when it comes to filing bankruptcy, you will have to pay to someone who is going to dispose off your assets.
You will no longer need to deal with your lenders directly - the Official Receiver will do it on your behalf.
Additional Costs Depending upon your specific case and the state you belong to, there can be some additional costs as well.
In general, you will be liable to pay a small amount of fee in case the affidavit has been submitted in the high court.
However, you will not be charged any amount apart from the Official Receiver's fee and court fees if the affidavit has been submitted in the County court.
If you are filing bankruptcy as partners in a business, all the partners will be liable to pay the costs individually.
Likewise, if you are filing the petition as a married couple, both of you will have to pay the fees.
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