Giving hope to hopeless since 2007

84% Clients satisfied
In the last 7 years

Watch 368 live reviews
Know why people trust us

100% Refund
When there is no result

We follow FTC
Since we care for you

Filing for bankruptcy: When and how to make use of this legal weapon

Bankruptcy is regarded as the ultimate debt relief solution – one which is chosen only when other debt elimination processes fail to revive the finances of a debt ridden individual. It is a legal process which promises fresh financial start to the consumers by eliminating their outstanding bills and dues. The federal law based judicial course of action either results in the discharge of most or all unsecured debts of an individual or reorganizes the debts with a court-approved payment plan. However, certain bankruptcy cases may also involve loss of the consumer's assets to pay off his creditors.

When can you file bankruptcy?

Bankruptcy might seem to be the best debt solution when nothing else seems to work in your favor. One or more of the following common reasons might prompt you to file for your bankruptcy.

  1. You are burdened with enormous debt and not in a financial situation to pay off those
  2. None of your attempts to pay off debt worked
  3. You risk losing assets to creditors
  4. You are unemployed or have lost your job recently

What are the two main types of consumer bankruptcy?

Bankruptcy comes along in various forms. Since bankruptcy leaves a noticeable mark on your financial history, it's extremely important to choose the right form which suits your specific situation. For this reason, it's sensible to sit with an experienced attorney for a pre bankruptcy counseling.

The two most common form of consumer bankruptcy are:

  1. Chapter 7 – Straight Bankruptcy/Liquidation: This is the basic liquidation bankruptcy for individuals and businesses. Since it usually involves the discharge of debt, it's considerably a simpler and faster process.
  2. Chapter 13 – Adjustment of an individual's debt: This form of bankruptcy adjusts an individual's debt in a way that his debts are repaid, as much as possible. It involves formulation of a court-approved repayment plan for individuals with steady source of income.

Why is it better to hire a bankruptcy attorney than to do it on your own?

It's not necessary that you have to appoint an attorney when you're about to file your bankruptcy. You can evidently represent yourself in the court. However, it's strongly recommended to consult one for bankruptcy help since, after the enactment of BAPCPA in 2005, filing bankruptcy have become much more complicated and time consuming. A minor mistake during the filing process or violation of the bankruptcy laws, may result in rejection of your case.

Thus, before you decide to file your own bankruptcy, check out the following list to understand how an experienced bankruptcy attorney can be a better choice.

Hire Bankruptcy Attorney Do It Yourself (DIY)
Free initial consultation
Protection from creditor harassment
Appropriate legal advice (asset protection, valuation of assets, listing exempted property, etc..)
Protection from mistakes while preparing bankruptcy forms
Absolute peace of mind

How much is the cost of filing bankruptcy?

The term 'affordable bankruptcy' is misleading to some extent, since a debtor needs to pay the mandatory court fees sometime later after his case is successfully filed with the court. The filing fee for Chapter 7 bankruptcy is $306, while it's $281 for a Chapter 13 case. In addition to the court costs, the consumer also needs to bear the attorney fees for valuable bankruptcy advice.

How bankruptcy can affect credit rating?

A bankruptcy filing can have a significant impact on your credit score. Not only does it brings down your credit score, it also stays on your report for around 7 to 10 years. However, most individuals filing bankruptcy already suffer from poor credit situations. So, getting rid of the debts might seem a good option at that point. Moreover, just because you filed bankruptcy, it doesn't mean that you'll not be allowed credit within or after the 10 year period.

0
votes
1
answers
Category:
Kristi_1429500929
Asked on Tuesday, April 28, 2015 - 20:36
0
votes
1
answers
Anonymous (not verified)
Asked on Tuesday, April 21, 2015 - 05:13
0
votes
1
answers
Anonymous (not verified)
Asked on Tuesday, March 31, 2015 - 16:36
0
votes
1
answers
Category:
Anonymous (not verified)
Asked on Sunday, March 29, 2015 - 23:40
0
votes
1
answers
Category:
Anonymous (not verified)
Asked on Thursday, February 26, 2015 - 22:41
0
votes
1
answers
Anonymous (not verified)
Asked on Thursday, February 12, 2015 - 09:42
0
votes
1
answers
Category:
Anonymous (not verified)
Asked on Thursday, January 15, 2015 - 10:16
0
votes
1
answers
Anonymous (not verified)
Asked on Wednesday, January 14, 2015 - 08:29
0
votes
1
answers
Anonymous (not verified)
Asked on Wednesday, January 14, 2015 - 08:11

Pages

 Is chapter 13 bankruptcy right for you? Why?

Is chapter 13 bankruptcy right for you? Why?

Date: 10:04 pm 25th May, 2015 Article Rating: 
Rating: 
Average: 4 (1 vote)

Ignoring debts can be dangerous for your financial health, you’ll be harassed by the call of the creditors. They can even take legal actions against you. If you’re already going through this phase you need to file bankruptcy in order to resolve the problem. But, which bankruptcy will be the best [...]... Read more


Can you discharge payday loans in bankruptcy?

Can you discharge payday loans in bankruptcy?

Date: 11:48 pm 17th May, 2015 Article Rating: 
Rating: 
No votes yet

Payday lending is considered as one of the creepiest borrowing choices when it comes to consumer lending. The practise mostly involves a request for post-dated checks, sky-high interest rates, and difficult-to-track lenders who reside in safe abodes (often in foreign countries like Costa Rica, [...]... Read more


40 Dos and don’ts for bankruptcy filers in 2015

40 Dos and don’ts for bankruptcy filers in 2015

Date: 12:21 am 27th Apr, 2015 Article Rating: 
Rating: 
No votes yet

Have you finally had enough of financial problems and are mentally prepared to file bankruptcy? Do you really want to make a fresh start in this new financial year? If yes, then make sure you check out our 40 bankruptcy dos and don’ts for 2015. I’m sure it’ll help you discharge your debts [...]... Read more


Bankruptcy trustee - 44 Questions he is likely to throw at you

Bankruptcy trustee - 44 Questions he is likely to throw at you

Date: 11:25 pm 19th Apr, 2015 Article Rating: 
Rating: 
No votes yet

“If you fail to please bankruptcy trustee, you’ll fail to discharge debts”Be it chapter 7 bankruptcy or chapter 13, you can’t avoid meeting at least one person and that is Bankruptcy trustee. Whether you like it or not, he will test your financial health at different stages of bankruptcy. [...]... Read more


You have to give up security clearance due to bankruptcy - True?

You have to give up security clearance due to bankruptcy - True?

Date: 01:25 am 13th Apr, 2015 Article Rating: 
Rating: 
No votes yet

“What will happen to my security clearance?”This is the first question federal employees ask to their bankruptcy attorney. And, there is a strong reason behind it. They need to have security clearance for their jobs. So, when employees of federal agencies (especially where security clearance is [...]... Read more



Latest Articles

How to spot and avoid debt consolidation scams

Scam debt consolidation firms mainly hunt on people who are desperate in search of a way out to their mounting debt problems. People whose credit scores are bitter or already ruined often fall prey to debt consolidation scams. While the legitimate ones help you keep calm and stay afloat ...

View more »
Latest answers

Can you sue a debt collector for harassment when he calls ...

Can you sue a debt collector for harassment when he calls you regarding a debt that has crossed the SOL period ...

View more »
Latest from blog

Memorial Day Weekend in Washington D.C: The fast-lane of ...

On this Memorial Day, veterans and fallen heroes would be honored in the nation’s capital. Here’s the itinerary of the celebration: No Memorial Day in DC is complete without mentioning the National Memorial Day Parade. Started on since 2005, the parade is largest of its kind in the ...

View more »