If your financial circumstances are bad enough, you may be considering bankruptcy as a way to solve your overwhelming credit card debt. However, many people are concerned about having to pay for the bankruptcy process itself. If you already have problems paying your current obligations, where are you going to find the funds to cover the cost of bankruptcy?
Keep in mind that the fees for declaring bankruptcy are actually pretty low. Chapter seven bankruptcy costs $274, and chapter 13 is only $189 at the time of this writing. This may seem expensive for those who are struggling with debt problems, but if your case is successful you will be getting significant relief from your financial problems.
If you’re successful in filing chapter seven bankruptcy, then you’ll be able to wipe out most of your debts. Chapter 13 on the other hand, would provide you with a long-term repayment plan instead of simply doing away with your bills.
Personal bankruptcy can be a lifeline if you’re drowning in credit card debt (or any other kind of financial obligations for that matter). Chapter seven can help you wipe out your credit card bills if you are running out of options, and a chapter 13 bankruptcy can give you a payment plan to catch up on your mortgage.
You will need a lawyer to get you through the process, and these costs are separate from the bankruptcy fees. However, you don’t want to try and go it alone because the bankruptcy code is too complex, especially with the recent changes.
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.
In fact, you receive some relief as soon as you file your application for bankruptcy. Your creditors are not allowed to contact you until your case is resolved, and this gives you at least a temporary break from your bills.
In any case, you want to try and find the best bankruptcy lawyers that you can afford. Choosing the cheap bankruptcy attorney who doesn’t fill you with confidence is simply not worth the risk.
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