April 21, 2020 | Bankruptcy, Chapter 7, General

If you are considering filing for Chapter 7 bankruptcy, set aside money now 

Money had been tight for a while. Your bills were starting to pile up, and it  seemed as though you just couldn’t get ahead no matter how hard you tried. Overwhelmed and ashamed, you stopped opening your mail and answering your phone, hoping that somehow the creditors and bill collectors demanding payment from you would simply give up and go away. You considered declaring bankruptcy – but were hesitant.

Then COVID-19 happened. Things went from bad to worse.

Millions of Americans have been laid off, furloughed, or have seen their regular work hours cut as the nation’s economy spirals downward in response to the coronavirus global pandemic. For those who are already struggling, it means there is even less money available to pay the mortgage, credit cards and other bills, much less provide food and necessities for themselves and their families.

The government is working to provide safety nets through the federal stimulus package, but for many, it’s likely not enough to make a dent, much less a difference. Chapter 7 bankruptcy could be the answer that provides you with some relief – not to mention a fresh start. Before you decide, there are things to keep in mind, including the cost to file a case.

Nebraska and Iowa Bankruptcy Lawyer 

If you are experiencing a financial hardship resulting in an unsustainable level of debt, it can feel like the entire world is falling down around you. Faced with debts that simply cannot be paid is stressful enough; add the fear of home foreclosure, the humiliation of wage garnishment, or the anxiety of creditor harassment, and the process becomes even more traumatic. The Omaha bankruptcy lawyers at High & Younes can help. Give us a call at 402-933-3345 or fill out our contact form here.

Can I Afford to File Chapter 7 Bankruptcy? 

It’s a common question prospective clients ask: “How much does it cost to file Chapter 7 bankruptcy?”

People are often shocked to discover the answer. Thirty years ago, Chapter 7 bankruptcy cases cost around $600.00* to file. As with most things, inflation and the passage of time has made costs rise. In 2012, the national average for Chapter 7 bankruptcy was $1,500.00,*a 150% increase.  In 2020, the national average is approaching $1,900.00.

Omaha Bankruptcy Trends: The Numbers Are Lower 

In the Omaha metro area, bankruptcy figures have remained slightly below the national average.  However, if there is a coming surge in bankruptcy filings due to the coronavirus, and subsequent ripple effects like job loss, loan defaults and other negative economic impacts, a slight uptick in fees to keep pace with demand is possible.

Discouraging? Yes. And we understand. But the takeaway is simple:

If you are planning to file a Chapter 7 bankruptcy case, you must plan on covering the required fees. In other words, start setting aside money now. 

Chapter 7 bankruptcy fees MUST be paid, in full, before you may file your case.  Stated another way, your case cannot be filed until the full amount – court costs plus legal fees – are collected.** If you are in a position where it may take time to pay your legal fees then you are vulnerable to the collection efforts of your creditors, including lawsuits, wage garnishments, repossessions, and other aggressive tactics. It is important to be proactive. Do not wait until such actions have already begun. You may find yourself in need of immediate debt relief, yet unable to pay $1,500.00, or more to file your case. So the vicious, stressful cycle of hardship continues.

Many clients use tax refund money, borrow from family, or quickly save it up once they stop making monthly credit card and medical bill payments.  If these situations do not pertain to you, though, you need a plan of action before the situation gets worse.

Consider using your government stimulus check, which is $1,200 for singles and $2,400 for married couples. Then you are covered or at least close.

Get Bankruptcy Relief Now 

It is our mission at High & Younes to provide clients with the bankruptcy legal services and professional judgment they expect when faced with debt problems and creditor harassment. Our skilled legal team devotes the time necessary to help clients understand the status and potential outcome of their case.

Our firm focuses on fighting for the rights of individuals, couples, and business owners who may need the protection of bankruptcy to financially recover from any number of setbacks. If you are considering filing for Chapter 7 or 13 bankruptcy, let us help you understand your options. Our legal resources are designed to help you understand your legal rights and our team will fight to get the best outcome for you and your future.

The bankruptcy attorneys at High & Younes offer initial consultations free of charge.  Call, text, or e-mail us today to get connected to a bankruptcy attorney to review your financial situation for FREE. We can be reached at 402-933-3345 or our confidential contact form. You also can get in touch via live chat on our home page.