There are many fees that a Tennessee consumer may have to pay when filing for bankruptcy. For instance, it may cost $1,250 to hire an attorney, and that money often needs to be paid in advance. The filing fee itself can range from $275 to $335 depending on what type of case a person chooses to pursue. Those who wish to appeal a decision made by a bankruptcy court may have to pay nearly $300 to do so.
If an individual can show that paying these fees upfront would cause a financial hardship, an installment plan may be approved. Chapter 7 is the most common form of personal bankruptcy. It also comes with the highest filing fee, which in 2017 stands at $335. Debtors should also consider the fact that a Chapter 7 bankruptcy stays on a credit report for 10 years.
Typically, information on a credit report such as a Chapter 13 bankruptcy filing comes off after seven years. The fee to file for Chapter 13 bankruptcy is $310 in 2017. Unlike a Chapter 7 case that liquidates a debtor’s non-exempt assets to pay creditors, a Chapter 13 case reorganizes most debts. Debtors who have a steady source of income repay creditors in accordance with a proposed three or five year plan. Family farmers may be able to use Chapter 12 bankruptcy to seek relief from creditors.
Filing for bankruptcy may help an individual obtain a fresh financial start. Medical and credit card debt can be reorganized and restructured under a Chapter 13 plan, and any remaining amounts of such debt after the plan has been successfully completed can generally be discharged.
