Thursday, March 16, 2006

Bankruptcy for the little people:

One of the features of bankruptcy reform proponents pointed to was the change in filing fees. An actual reduction in the cost to file a Chapter 13 from $194 to $189. The change in Chapter 7 fees went from $209 to $274, to encourage people to file Chapter 13s apparently. However, a few pointed out that if someone could still qualify to file a Chapter 7 (under the median income filers) the higher fees and extra costs of credit counseling would have a negative impact. The response was that the higher cost was a small one. Tell that to someone that paid $20 to fill their gas tank last year and $40 to do it this year.

Well, in an effort to balance the federal budget, those wonderful congresspeople have corrected the error of their ways. Less than 6 months after the new bankruptcy reform went into effect, the fees for filing bankruptcy are increasing.

Effective April 9th, the filing fee for a Chapter 7 will increase $25 to $299. And the filing fee for a Chapter 13 will go UP TO $274.

Don't cha love it!?

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