Should I File Bankruptcy? – The Question No One Wants To Ask By Richard Wilson
Debts are piling up and the creditors are queuing at the doorstep – should I file bankruptcy? When you find yourself backed into a corner of debt and you can’t foresee a way out, then filing for bankruptcy could be the right solution for you.
The stigma of filing for bankruptcy isn’t what it once was. Although it sounds like the end of the world, you can rest assured that you’re not the only person feeling the pinch. Many highly successful entrepreneurs have been bankrupts at some point in their careers and tens of thousands of people file for bankruptcy each year.
Declaring bankruptcy can relieve the enormous weight you have on your shoulders and stop the dreaded calls from the debt collectors, allowing you a fresh financial start; however it does come at a cost. Before you ask yourself should I file for bankruptcy? Take the following into account:
Length of bankruptcy – The length of time you will be classed as a bankrupt for will vary from state to state and country to country, depending on local laws. The standard range is anywhere from one to three years and in certain circumstances, your bankruptcy may be extended even further.
Bankruptcy wipes most debts, not all – While it’s true that most of your debts will be discharged, filing for bankruptcy is not a get out of jail free card. You must still pay taxes and any child or family support payments that you are liable for. Likewise if you still owe for student loans or criminal fines and penalties; these debts and payments cannot be discharged. While you will gain the luxury of not having to make regular repayments, you will lose the right to your non-exempt assets. These will be placed in the hands of a trustee, who will in turn dispose of them in order to pay your creditors.
Loss of Company – Under most circumstances you will be banned from running a company, or being involved with its management without the permission of a court.
Personal Impacts - As a declared bankrupt you may be required to forfeit your passport to a trustee and in many cases you will not be able to leave the country without written permission. Routine tasks such as obtaining insurance may become difficult. You may be required to pay a bond for the connection of electricity, water and telephone utilities. Future job opportunities may be affected.
Furthermore, filing for bankruptcy is the worst thing you can do for your credit rating. The good news is it doesn’t last forever. Once you have been discharged, through sensible money management you can regain a good credit rating relatively fast. This may well be part of the reason why so many people are choosing to file now in search of getting a clean financial slate. So if you’re in a situation where you need to ask – should I file for bankruptcy? Take the preceding information into account, but remember, it’s not the end of the world.
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Do It Yourself Bankruptcy – Lodging the Forms Yourself By Richard Wilson
Filing for bankruptcy can be a difficult time for anyone, but with a little research you can save stress and further embarrassment with a do it yourself bankruptcy solution.
There are no hard and fast rules around filing for bankruptcy. Although the easiest way may be to simply hire an attorney to deal with it, under a time of financial distress this may not be the most sensible approach. For this reason, many people are now choosing a do it yourself bankruptcy approach.
The first thing you will need to determine is whether you actually need to file. Bankruptcy is not something to be taken lightly and while there are good aspects to it for someone in dire financial circumstances, it’s generally a very negative thing to have to do, both financially and mentally. If you are in doubt or there is any uncertainty in your mind over what you should do, you should contact a financial planner or attorney who can offer you sound advice. Generally attorneys or planners can provide basic initial assistance for free, where you’re trying to sum up whether you need to use their services or not. Just make sure the advice is free of charge.
If you do decide a do it yourself bankruptcy is the best option – In nearly all cases the only forms you will need for a do it yourself bankruptcy are freely available online, or alternatively, through your local district courts. The forms are relatively easy to follow and can be completed by anybody, regardless of profession.
Once you have completed the forms it will be in your interest to become accustomed with the fees involved prior to lodgement. As with any court process, there will be filing fees applicable, and these remain even when you are completing the application yourself. Depending on which state or country you’re filing from, you may be eligible to apply to make these payments via instalments, easing the pressure slightly. The best scenario is if you can have these fees waived by a court. If this option is applicable to you it will probably be marked on the initial application or petition form. If it is not clearly marked, a quick search online or a call to your local courthouse should provide you with an answer. In order to have filing fees completely waived, you will normally have to provide evidence that you cannot afford the payments now or in the foreseeable future, along with passing a means test provided by the court.
Once you have lodged the forms your do it yourself bankruptcy is almost complete and you have saved yourself the expense of hiring an attorney. It is now in the hands of the court and you will be advised from here on in of what you will need to do.
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Should I File for Bankruptcy, and what are the Appropriate Steps to Take?
Should I File for Bankruptcy, and what do I do next? This is a question many Americans are afraid (and in denial) to ask. Bankruptcy is indeed a hard pill to swallow. However, if your financial situation has really been affected by the recession and you’re on the verge of losing everything, now’s the perfect time to ask yourself the question honestly, then educate yourself about surviving bankruptcy.
So, should I file for Bankruptcy,? According to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), prior to filing for bankruptcy, one must obtain consumer credit counselling within 180 days of the date of the bankruptcy filing. Credit counselling should be from an entity approved by the U.S. Trustee. This is important to educate yourself with other alternatives than filing a bankruptcy case.
After answering the oh-so-important question: should I file for bankruptcy, one should know about the important steps to take next. First of all, make damn sure that you have no other alternative. Bankruptcy will appear in your credit history file for up to 10 years. However, if your financial situation is in real bad shape, bankruptcy will allow you for a fresh start.
There are actually two common types of bankruptcy. The most popular is the straight or liquidation bankruptcy. Another is the Repayment Plan. Liquidation Bankruptcy is much more difficult to obtain because of the means test, thus, many people are forced to file the latter type of bankruptcy plan.
Another important question is ‘Should I hire a lawyer?’ Some choose to file without the help of a lawyer, although it’s highly recommended to get a lawyer. Of course, you should know how much it costs. Some lawyers give a flat rate, while others base it on the amount of debt you have. Others let you pay in instalments, while others require you to pay up front. Average lawyer rate is around $1,700, but may vary depending on the state you are living in. Meet with the lawyer so the two of you could go over your case, so he can determine which bankruptcy is best for you, based on your financial state. There are some states that allow you to file for free if you don’t have the financial means.
Refer all your creditors to your lawyer, so they will be able to speak on your behalf (Which means, equals no more annoying calls at your home and office! Hooray!). Once a lawyer has filed your case, absolutely no creditors should contact you regarding your debt. If they go against this, a wilful violation will be assessed against the creditor, including attorney’s fee, appropriate cases and punitive damages.
Now that you are equipped with all the right information, you can now ask ‘Should I file for bankruptcy,?’ with no hint of fear or uncertainty.
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Do It Yourself Bankruptcy: Must Read Guidelines
There are many reasons that could drive you to consider do it yourself bankruptcy. Perhaps you have been struggling to meet both ends of your living already or you are hitting rock bottom now. Whatever your reason is there is one thing definite about it. You already exhausted all the possible alternatives to rescue your financial situation and nothing has worked.
Therefore, your ultimate solution is the declare bankruptcy. It may not be an easy decision however sometimes it is the only option you have. Before you take that bold move to declare insolvency, it is important to review once again your financial status. Try to review your expenditures and perhaps you can still squeeze some savings from there. Look at your assets and maybe you can use them to pay off some bills and mortgages.
If you manage to minimise your financial problems through this, then it is great because you eliminate the probability of employing a third party to help you out from your financial quagmire. On situations wherein you already exhausted all the possible means and there is still no progress, then it is about time to take the bold move. You have to take the option of do it yourself bankruptcy.
Actually, there are many available resources online which will help you proceed on this. Generally it is free of charges. There are also credit counselling agencies which will aid you to creating a household budget. Another option is to hire bankruptcy attorney but you need to remember that hiring a qualified and expert lawyer for your bankruptcy case is recommended. This type of case is actually considered specialised because it deals with the state and federal laws.
Do it yourself bankruptcy is really quite a tricky situation and the last thing you want to happen is losing everything because of a lousy attorney. Indeed good and qualified lawyers will be expensive but they worth every dime. So how you can get a good lawyer?
The best way is through referrals. One way or another there is someone in your network of friends who has undergone the same process. Ask them for their recommendation and do not hesitate to take advantage of their experiences also. Learn from their mistakes.
Another way is to check in the local state or bar associations. Of course, there will endless list of lawyers for bankruptcy. Try to check their experiences and the cases they handled. What is their success rate? Are the cases successful? If you manage to find any names of his clients, then it is best to speak with them.
It is important to stress that do it yourself bankruptcy situation is very critical and this is the reason that you must research carefully before taking any actions.
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Should I File Bankruptcy
LOW COST BANKRUPTCY FILING
SHOULD I FILE BANKRUPTCY? is a thought that is haunting a massive number of people these days – not just in the USA – but throughout the World! I had to file bankruptcy myself and was charged nearly $800 by my accountant just for him to “look into” whether or not I should go ahead and file!! That fee did not include any charges to do the actual filing itself!! This website is dedicated to helping you find LOW COST ways to get the information you need to answer your question.
Almost all of the bankruptcy articles available on the web elsewhere appear to have been written by bankruptcy companies, attorneys and accountants who then spend their time trying to convince people in serious financial trouble to hire them at some very expensive hourly rate to “help”! AS IF YOU CAN AFFORD THEIR FEES!! SOME HELP!
The best low cost risk-free way to get to know what your filing options are is to purchase a really good up to the minute ebook. I highly recommend two – the first one available from this first link sells for only $24.95 – and the second one, available from this second link is a very comprehensive 180 page e-book packed with relevant information that sells for less than fifty dollars! They are both well researched and packed with information that will help you really save money and a lot of time to answer your question – Should I file bankruptcy? And don’t forget that they both have a money-back guarantee – try getting that promise from an accountant or attorney!
Basically, once you have decided that filing for bankruptcy is the best option for you, what you need to find out is whether you qualify to file for a “Chapter 7 Bankruptcy” – which is a complete discharge of debts, or a “Chapter 13 Bankruptcy” – in which you are required to repay a portion of your debts on a fixed payment plan. There are many differences between these two sorts of bankruptcy and it would be wise to read up on both before deciding which chapter is your best option and what sort of help you may really need from a bankruptcy specialist should this be absolutely necessary.
Whatever you do, don’t let the thought of being bankrupt cause you undue stress – when so many of the USA’s largest banks and companies like General Motors have gone bankrupt it just shows how impossible it can be to keep your finances in good order. Remember that bankruptcy can give you a “fresh start” in life and it is a fact that many people have turned their lives around after having filed bankruptcy!
I honestly sympathize with your problem – having been there myself and I truly hope that the information contained in this article and in this blog will help you to make an informed decision that will be right for you.
T.Trust
