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| How should you deal with the costs of declaring bankruptcy? |
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| Written by Josh Ramos |
| Tuesday, 07 April 2009 13:01 |
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One of the obstacles that keep people from considering bankruptcy as one of their options is the cost. Many assume that the cost to declare bankruptcy is too high and will simply add to their current financial problems. After all, if a consumer is struggling to pay off current debts as it is, how will adding one more fee help the situation? Well, first we should take a look at the actual cost of filing bankruptcy with the court. The court filing fee for chapter 7 bankruptcy is $274, while the fee for chapter 13 filing is $189. This may seem like a steep price to pay for someone who is already in serious financial straits, but the numbers are much more reasonable when you consider what you're getting in return. A successful chapter seven bankruptcy will eliminate your debt, while a chapter 13 is only designed to create a payment plan that you'll have to follow for 3 to 5 years. Either way, declaring personal bankruptcy can be a lifeline for those in serious financial difficulties. Obviously it would be nice to completely wipe out your debts, but sometimes even a simple agreement with your creditors is good enough to get you back on track. This can be the case when you're trying to catch up on your mortgage payments and don't wish to go into foreclosure. When you consider what you're trying to achieve with bankruptcy, the fees for filing your case do not seem so great. However, as with most legal issues, the real cost usually comes with your lawyer fees. Your legal fees can certainly add up, and the recent bankruptcy law changes makes things more complex and gives your lawyers more work to do. You actually get some relief as soon as you file your bankruptcy request, because something called the automatic stay goes into effect immediately. This means that your bill collectors cannot contact you until your case has been settled once and for all. Remember that a successful case will help you with your current debt problems, and they should make it easier for you to find the funds to pay for your bankruptcy filing fees. Always remember that you need to find a good bankruptcy lawyer to help you through this, and don't try to go through the process on your own. However, it is a good idea to try and learn as much as possible about your situation before talking to an attorney. About the Author: Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn the answers to common chapter 13 bankruptcy questions visit us at http://personalbankruptcyquestions.org Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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