You might be surprised to discover that it costs less than $2,000 to file a first-time Iowa Chapter 7 bankruptcy action. This amount also includes the costs of hiring an Iowa bankruptcy lawyer. Depending upon your financial state, you can even pay in monthly increments over time. While the information below is general, speaking with a bankruptcy lawyer in Iowa can provide clarity for your specific situation.
Costs Associated with Filing Chapter 7 in Iowa
There are out-of-pocket expenses that come with filing for bankruptcy in Iowa, like every other U.S. state. They are typically limited to filing fees, credit counseling, copies of credit reports, and legal representation.
If you are planning to budget your bankruptcy fees, consider the information below:
- Pre-bankruptcy credit counseling: A requirement of filing for Chapter 7 in Iowa is attending pre-bankruptcy credit counseling six months before your filing. The cost of pre-bankruptcy credit counseling is between $10 and $30.
- Iowa bankruptcy lawyer: Protecting what you can keep after filing Chapter 7 in Iowa is a natural strategy when making the most significant financial decision of your life. It is also one of the many ways in which an Iowa bankruptcy lawyer can help you. Typically, the legal fees of an attorney are $1200.
- Chapter 7 petition filing fees: Initiating a Chapter 7 bankruptcy case begins by filing a petition with the U.S. Bankruptcy Court closest to you. Whether you are filing in the Northern or Southern District of Iowa, the filing fee is $335.
- Copy of credit reports: Courts, credit counselors, and lawyers may ask you to pay for the costs associated with obtaining copies of your credit reports. Depending upon the number of requests, you may want to budget $100 for incidental credit reporting expenses.
After reviewing the details presented above, it is reasonable to conclude that you will spend around $1,665 to file for Chapter 7 bankruptcy in Iowa with the help of a bankruptcy attorney.
Tips for Making Bankruptcy Costs More Manageable
If it sounds impossible to afford the costs of filing for bankruptcy and legal representation upfront, you may feel assured in knowing that there are options available to make them more flexible.
Here are a few tips that allow you to manage the costs of filing a Chapter 7 bankruptcy action in Iowa:
- Find an approved pre-bankruptcy credit counseling agency that offers free or low-cost services
- Work with an Iowa bankruptcy lawyer willing to accept a monthly payment arrangement
- Ask your attorney if you qualify to file an Application to Have the Chapter 7 Filing Fee Waived with the bankruptcy court
U.S. Federal Bankruptcy Codes support the affordability of filing for chapter 7 since filers are already experiencing liquidity issues. It also improves your chances of future financial success without the added stress of paying legal fees upon the discharge of your debts.
Contact an Iowa Bankruptcy Lawyer at The Smith Law Firm, PC for a Free Consultation
If you have questions about the costs of filing for a Chapter 7 bankruptcy in Iowa or otherwise, The Smith Law Firm, PC invites you to contact our legal team for a free consultation by calling (515) 451-1260 or sending us a message through our online contact form.