Are you in over your head financially and seeking a way out? If so, filing for bankruptcy might be the best course of action. With that said, you should not walk into this situation without knowing what to expect. Before taking this leap, here is some important bankruptcy information that needs to be considered.
Before starting the process, you should be aware of the costs that are involved. Depending on the type of bankruptcy, you are likely to pay anywhere from $1500-$4000. This may seem steep considering the fact that you are already struggling to keep up, but it is necessary if you plan to move forward.
There are companies in different cities that have bankruptcy information and assistance available to customers who are considered low income. While some of them are legitimate lawyers, there are others who are consumers just like you. It is best to avoid those who are not legal professionals since they can end up costing you more time and money than this is worth.
Having a bankruptcy on your credit record is enough to scare off many lenders. If you plan to apply for credit at some point in the next ten years, it may be difficult or even impossible. There are many companies that offer secured accounts to individuals in this situation, so keep this in mind as you move forward. It is important to decide if it is actually worth the hassle.
Some debts are not covered when you file for bankruptcy. This includes child support arrears and student loans. It is important that you understand this prior to moving forward.
The bankruptcy process is one that is lengthy and complicated, but helpful for many people who have hit a financial wall. Hopefully this information has been helpful when it comes to deciding whether this is the best course of action for you.