$500 Bankruptcy
Have you heard the popular advertisement for $500 bankruptcy? These advertisements usually have more truth and substance behind them than $0 or $200 in bankruptcy and similar ads. What are you actually getting for these $500 bankruptcy offers? The answer may surprise you.
$500 Bankruptcy May Only Be Partially Accurate
When you hear an advertisement for $500 bankruptcy, you need to look into the reality behind the offer. Many times these offers are simply inaccurate. At best, they may only be telling you part of the information or cost.
For instance, some discount, high volume bankruptcy firms may offer a $500 discount bankruptcy. However, this price will rarely if ever cover the $338 court costs. It also may not cover hidden charges for credit reports and required classes. To make matters worse, sometimes this rate will only apply to certain limited customers. It may only apply to filers who are only on social security or minimal income. It may also not apply to those who have car loans or real estate. Essentially, it may be very likely that they are advertising a $500 bankruptcy for the most basic cases only with an abundance of many hidden charges waiting!
Be careful and examine the entire situation, reputation of the firm, and the costs required before making an appointment. Surprisingly, you may get a better price and service at a firm advertising $800 to $1200 because these prices are low but still very possible for a firm to charge with no hidden charges. A real (including the $338 court cost) $500 bankruptcy price would only give the law firm $165 per case for their extensive hours of legal work! This price is simply too low to be possible. The only exception would possibly be a pro-bono, non-profit charity organization (someone who would be doing the work mostly for free!).
$500 Bankruptcy May Not Be Accurate at All
Many times a $500 bankruptcy advertisement is not accurate at all. Many firms will charge this amount (or more) only for a Chapter 13 case. Chapter 13 cases always require $313 for the court cost. However, there are likely approximately $4500 in fees total for these cases that will be paid through your bankruptcy plan. This $4500 approximate amount is court-set in many U.S. districts, resulting in most places ultimately charging about the same amount for the 3-5 year representation required for a Chapter 13 case.
Remember, most bankruptcy firms charge somewhere between $800-$2500 for a Chapter 7 plus the $338 court cost. This represents the lower and higher end of the spectrum. This simply does not align with an advertisement claiming $500 bankruptcy. You could even be signing up for a forms provider instead of an attorney. This means that you would be essentially doing your bankruptcy yourself. Alternatively, you may just be dealing with a very cheap bankruptcy office that may nickel and dime you to death with an actual, basic-case-only price of about $835 plus some hidden fees. Although there are many lower-priced bankruptcy offices across the U.S., beware of advertisements like this. Make sure to get all of the details first. Or, possibly just pursue someone else advertising a more realistic low price.
Do you need debt relief? Call Bymaster Bankruptcy Law Offices for a FREE initial consultation.
