Are You Actually Ready To Declare Bankruptcy?

Bankruptcy || WorksheetHave you been thinking of declaring bankruptcy to get rid of the piles of unpaid debts and bills weighing you down?

Before making the move, you need to be absolutely sure about what bankruptcy entails and what are the costs involved. Consider the following:

Can I Afford to File a Bankruptcy?

To declare bankruptcy you may need a lawyer if you want the job done right. There would be a fee attached to the attorney's time. Attorney fees can range from $1000 to $5,000 based on what type of bankruptcy petition you are filing. Plus a bankruptcy petition court filing fee which ranges from $260 for a Chapter 13 petition to $335.00 for a Chapter 7 petition. Another cost to consider is for you to attend and complete a counseling certificate which could cost upward of $45.00. Do you have that kind of money? Our firm provides you with a plan payment so you can afford your bankruptcy filing.

What Type of Bankruptcy Can I file?

An individual can for bankruptcy protection under Chapter 7 and Chapter 13 of the Bankruptcy Code. What's the difference? A Chapter 7 bankruptcy petition allows debtors to discharge certain debt and give them a "fresh start." You need to consult with a competent attorney to determine if you are eligible to file a Chapter 7 bankruptcy and the scope of any discharge.

A chapter 13 bankruptcy petition, on the other hand, requires the debtors to enter into a 3 to 5 year plan of repayment of their debt. The monthly payment for any Chapter 13 plan will depend on debtors' "current monthly income" as defined under 11 USC section 707(b).

Which type of bankruptcy do you qualify for? Each type has its own set of rules and regulations that vary from state to state and they come with their relevant pros and cons. Make sure the type you choose is one that relieves you off most of your debt without having to sell any of your assets. In addition, there are other mandatory qualifiers which determine your bankruptcy eligibility. Evaluate your options carefully, or get professional help!

What Are The After Effects?

Declaring bankruptcy is a serious step with a long term impact on your life and your credit report. You can expect the bankruptcy filing to appear on your credit report for the next ten (10) years. It is a matter of public record and hence, you may have trouble getting loans, insurance, or even renting an apartment after it. You need to be absolutely sure you want it!

Whatever you decide, keep in mind that the bankruptcy proceedings are administered through courts and are subject to various laws and conditions. That said, it's only a matter of time before you are past through the worst of your financial nightmares - you only need to know how to deal them right!