How much should I expect to pay for a chapter 7 that will also involve the attempt to discharge (old) personal income tax?
Optional Information: State/Country relating to question: Massachusetts
Reasonably you can expect to pay anywhere from $500 up to $2,500. It just depends on who you have prepare it, and the way that the firm works. If you hire an attorney most likely the fee is going to be more than if you just hired a bankruptcy preparer. Also some attorneys will allow you to make payments but with that in mind they will not file until the amount is paid in full. But please note, once an attorney has been retained then creditor are no longer legally allowed to contact you, and if they do you might have a lawsuit against them for a violation of the fair debt collection practice act.
what would be a reason to not use a preparer? Also- should the fact that I have a tax attorney- who does not do? bankruptcy- help me to keep the chapt 7 cost down- meaning they speak
the reason I personally would not use a preparer is when the situation is complex. If it is a straight forward bankruptcy and you are short on the funds then by all means go ahead and use the preparer. Keep in mind a preparer cannot go to court for you though either.
The mere fact that you have a tax attorney probably will not keep the cost down, the best advice would be to seek out a bk attorney in your area and have them give you a quote. I would say for a chapter 7 anything over $2,500 is way over priced. If its not complex litigation then probably anything over $2,000 is too much. Mind also that I am a licensed attorney in CA so prices might be lower/higher where you are at
Ok- the non tax part of it involves very small-not complex corp and personal debt.The complexity could come from the IRS debt. Do I need 2 separate petitions for the corp and personal? Can I not try to discharge the tax debt- just the others and therefor keep it simple-less expensive? I hate to pay a much bigger retainer because of the perceived complexity of the tax aspect.
Chapter 7 can be for a personal interest or a corporation. IRS debt shouldn't be too complex for a properly trained BK attorney
do I need to file 2 separate petitions - for the personal and also for the corporation?
Experience:
I am still waiting for your response to my last question.