10 Things You Should Know About Declaring Bankruptcy
Sometimes we build up so much debt that there is no realistic way that we can pay it all back. There reaches a point where we might consider bankruptcy as a liable option. But when you file for bankruptcy, there are a lot of costs and factors that could end up plaguing you for a very long time.
- Cost of Declaring Bankruptcy – Know the fees for the different types. There are two types of bankruptcy and the fees for filing for either one are pretty low. Chapter 7 costs $274 while Chapter 13 costs $189 to file.
- Ready to Declare Personal Bankruptcy – You have to prove you are struggling. Federal loans have changed making it more difficult to file. To be able to declare bankruptcy and have your debts wiped clean, you need to be able to prove that you are unable to pay back your debts.
- How Much It Costs to Declare Bankruptcy – Know the different bankruptcy chapters. There are two different bankruptcy chapters that you can file for. Chapter 7, which is harder to qualify for, states that you are unable to pay back your debt and wipes eliminates it. Chapter 13, which is the most common, restructures your assets and sets you up on a payment plan to pay back the debts.
- Debts You Must Pay After Bankruptcy – Some things cannot be eliminated. Even with filing for Chapter 7, there are some things that you will have to continue to pay for such as child support, alimony, tax debt, and government fines.
- Reconstruct My Credit After Bankruptcy – Rebuilding your credit can be difficult. Filing for bankruptcy is a quick way to bottom out your credit. However, with enough work, patience, and opportunity, you can slowly manage to rebuild it after bankruptcy.
- 12 Myths About Bankruptcy – You won’t lose everything. Many people fear that they will lose everything they own and be out on the street. Bankruptcy laws vary depending on the state you live in but most laws protect such tings as your home, car, money in qualified retirement plans, and clothing.
- You don’t have to file with your spouse. Sometimes one spouse or the other will have a great deal of debt. They can file for bankruptcy as an individual without including their spouse.
- Bankruptcy is a New Begining – A trustee is given control over your assets. If you file for bankruptcy, you will not be responsible for the distribution of your debt payments. While personal belongings remain with the bankrupt person, the trustee has control over everything else and is responsible for carrying out the proceedings.
- Why File for Bankruptcy Online – You can do it online. There are several online bankruptcy sites that can give you advice on how to file and give you the proper forms for you to fill out. This is not a substitute for a good bankruptcy lawyer but these online services can help process the paperwork.
- Tips for Choosing a Bankruptcy Lawyer – Pick the right bankruptcy lawyer. An experienced lawyer will be able to make a plan of action of the best way to proceed with the claim. They should be able to clearly communicate to you what your options are as well as pros and cons of filing.
Tags: bankruptcy
This entry was posted on Monday, August 10th, 2009 at 7:00 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.