Financial Freedom: How to Effectively File Bankruptcy
Borrowing money is done by countless people all over the country. It is usually done for a variety of different reasons. If you have borrowed money in the past then you may find that you are still paying off your debts. In some cases you may find yourself overwhelmed by a whole host of different payments that you have to make. On top of this you are going to have to deal with things like interest which can end up making your payments even bigger.
All of this is going to cause both you and your family a lot of financial strain. In cases like this it is important to take a look at the options that you have. When even debt management becomes a burden, you can look to bankruptcy. It is important, however, take a close look at bankruptcy and make sure that this is the right choice for you. Declaring bankruptcy can help you in the sense that all of your debts will be wiped out. This depends, however, on the type of bankruptcy that you choose to file for.
Finding an Attorney
The first thing that you need to do before you decide to file for bankruptcy is to find a bankruptcy attorney. These individuals will help you to take a look at your issues and see how they can be resolved. You will also get advice on the kind of bankruptcy that you should be aiming for. Ultimately, your attorney is going to help you through the legal process of declaring yourself as bankrupt.
Look at the Cost
There is going to be a cost for declaring yourself bankrupt. You need to take a look at how much this is going to cost you when it comes to legal fees. Your attorney’s fee is also going to be included in that. Fees, from your lawyer, are going to depend on different things. Some lawyers will charge according to the amount of debt that you have amassed. Other lawyers will only charge a flat fee.
The Type of Bankruptcy
Chapter 7 bankruptcy is probably the most common type of bankruptcy that people are going to file. This is liquidation bankruptcy. Chapter 7 bankruptcy means that your debts are cancelled and that you can keep your property (provided that you are able to continue the payments). If you have any nonexempt property then you will have to give this to your creditors. With Chapter 13 banktupcy you will set up some kind of payment plan for your creditors. This process will usually last about three to five years depending on how much you can pay.
There will be other things that you have to undergo as well once you have filed for bankruptcy. These include credit counseling to help you when it comes to managing your money. Bankruptcy is of course not your only option but for some people it is the only logical choice. If you decide to file for it then you will need to take a close look at all the facts before you decide.
Author Bio:
Dorothy is a freelance writer and blogger. As well as writing for Chapter 7 Attorneys and attorneys in Marietta GA she writes on a number of other subjects. These include travel, alternative energy, home design, fashion, gardening and cookery.
Category: Bankruptcy
