Bankruptcy is a way to escape from debt, but it doesn't come without a price — and consumers now pay as much as 55% more since the 2005 bankruptcy reform was passed.
The average cost of Chapter 7 bankruptcy cases has jumped from $900 to $1,399, according to a national study released on Dec. 15 by the American Bankruptcy Institute.
The study looks at major changes to the consumer bankruptcy system. Bankruptcy filing costs more and takes much longer because it is more complicated and cumbersome. And because attorney fees typically must be paid upfront, debtors often must hold off on filing until they can first sock away enough cash. Among changes from the bankruptcy reform bill:
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