In the past two years, many people have been forced to consider going bankrupt without really appreciating the costs of bankruptcy for which they were registered. The bankruptcy of Chapter 13 or Chapter 7 in most states is not too difficult for a seasoned lawyer, some will even say that it is too easy and that lawyers and consumers are at risk. abuse this privilege.
Filing a bankruptcy is a human right, but the fact that it is legal does not make it ethical to do so without considering another alternative for one's own poor financial decisions. Even if some creditors may misbehave when they contact late payment customers.
The costs of bankruptcy can vary enormously from one county to another depending on the requirements of the local legal system in effect. Bankruptcy lawyer fees also vary between $ 250 and over $ 100,000, depending on the reputation of the bankruptcy law firm and the size of assets and debt in bankruptcy to deal with.
As a rule, you get what you pay for; if you are cheap, you benefit from a cheap service and so on. It is usually advisable to get different quotes when you plan to go bankrupt in Chapter 7 or Chapter 13. Most people are uncomfortable when they discuss a problem. as deeply personal as this one, but it is imperative that shame does not deter you from calling upon many firms specializing in bankruptcy law and asking them to project the average cost of bankruptcy based on the number of debts and assets. potentially affected.
Bankruptcy costs and filing fees must also be factored into the total cost of bankruptcy and the forecast. You must also request an approximate delay between filing and judgment. This delay will affect the interest payable on the debt and your lawyer must advise you as to whether or not you should pay the interest.
Filing for bankruptcy is never easy because of the inconvenience that accompanies it, but you can solve it by asking the right questions and speaking frankly to your lawyer or bankruptcy attorney.
What are the alternatives to face the costs of bankruptcy?
For people who find bankruptcy costs too high and would like to consider refinancing their mortgage or debt counseling before filing Chapter 7. Some federal programs launched by the Obama administration aimed at helping with repayments and negotiations.
However, be aware that this financial sector is full of unscrupulous suppliers who will increase your debt while reducing your monthly repayments and worsening your situation. Before looking for bankruptcy or reorganizing your old debt, it is imperative to seek advice.
You did not get into debt as deeply as by the circumstances, most of the debt was created by decisions that had more to do with personal ego, resentment and probably low self-esteem. The problem with psychological disabilities like self esteem is that filing for bankruptcy does not heal and this can make this belief worse. The entire event could prevent the recovery of bankruptcy, which represents the real cost of bankruptcy … an irretrievable self-esteem.
The streets are strewn with homeless people who have not only lost everything, but also their ultimate possession, namely their belief that they can fix everything again. So, before considering filing for Chapter 7 or Chapter 13, consider the total cost of bankruptcy, including the least mentioned, namely the emotional cost.