Bankruptcy of an individual: how much does it cost?

Before starting the bankruptcy procedure, you need to find out everything

Anything can happen in life: job loss, crisis, illness. Hence the inability to pay bills and fulfill all loan obligations. And it often happens that the best solution is bankruptcy. What kind of procedure is this, how much will it cost and what could it entail?

Bankruptcy is usually understood as the legal writing off of existing debts through the court, if they cannot be written off in any other way. The bankruptcy procedure for individuals is regulated by current legislation, and the procedure can be initiated by both the individual himself and the Federal Tax Service and creditors.

For what debts can you declare bankruptcy?

Before finding out how much it costs to declare bankruptcy , it's important to know that the law applies to all debts an individual has. This includes loans, taxes, utility bills, and much more.

Bankruptcy expenses

In each case, without exception, the bankruptcy procedure will require considerable expenses, therefore, before initiating it, it is better to first sketch out an approximate estimate and compare it with the amount of debts. If you pay attention to all the costs, they can be divided into several groups:

• pre-trial – this group of costs usually includes state fees, court deposits, deposit fees, and costs for appointing a manager. You will also have to spend money on preparing the necessary extracts and certificates, and you will need a lot of them;
• judicial – it is possible to use the services of specialists or experts for consultation, postage, publication of information and bankruptcy;
• other – this includes payment for telephone calls, transport, and banking services.

The final amount is always closely related to the individual situation, but the minimum you need to prepare for is within 45-50 thousand rubles.

What is the meaning of the classical procedure

An application to the court for bankruptcy can be submitted in free form. You must provide the name of the court, your passport information, residential address and telephone number. It is also necessary to indicate what debt you have and to which creditors, and you must also attach documents confirming the specified debt. Along with this, you will need to make an inventory of your property and provide bank statements. It is equally important to explain why you are facing financial problems.