Legal Question in Bankruptcy in North Carolina

How much does it cost to file bankruptcy? If you file bankruptcy due to excess credit card debt, do you have to pay any portion of that debt? I am legally separated and do not receive any alimony or child support for my two minor children.

Asked on 11/13/12, 12:04 pm

1 Answer from Attorneys

Craig Lane Craig Lane Law

In Charlotte and the surrounding areas, the attorney fee of a chapter 7 bankruptcy (sometimes called "straight bankruptcy") varies from lawyer to lawyer, but is generally in the range of $1200 to $1500.

Chapter 13 bankruptcy creates a long term payment plan to catch up debts like mortgages and car loans, and to pay off unsecured debts like credit cards, usually at a sizable discount. The Court sets the attorney fee at $3250. Many attorneys, myself included, put the majority of that fee into the long term plan, with a smaller amount due "up front".

Lastly, the Court itself charges a filing fee of either $306 or $281, depending on the type of bankruptcy.

With respect to your question about credit card debt, in the majority of chapter 7 cases the client does not have to pay any portion of the debt. The bankruptcy filing gets rid of the debt.

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Answered on 11/19/12, 7:06 am

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