Most debtors think that the best way to pay the creditors is to file a bankruptcy. However, did they know how it costs for the filing and the processing on the claims. One needs a lawyer and also has to pay the processing fees of the claim.
During the time when the case proceeds, any changes in the proposals made will be charged to you. Any mistakes done for which corrections have to be made also invites charges. Filing for bankruptcy will cost in mostly on areas like paying the attorney, petition fees, reopening fees, amendment fees, cost of property loss and taking credit counselling.
Based on the credit status, the effect of being bankrupt will show in the coming years. Loans will be availed at a higher interest, pay more for buying a house or shopping. Even the insurance premiums are not left behind and they charge more after looking at the credit history.
The worse part will be selling your personal assets or belongings like home or car for settling the debts. One will not be able to receive financial assistance from lenders after they got to know your credit history since all the information of defaulter and bankruptcy persons are updated in their records.
The credit counselling that one requires for finding ways to avoid or handle the bankruptcy also has a fees. One has to pay $50 for every visit made. The Filing fees at the bankruptcy courts varies from 200 to 300$.The Attorney fees are higher and few of them may give the facility to pay the fees in instalments. Do not run after cheap lawyers who may not later win the case. The services of a reputed lawyer should be taken. Of course there are lawyers or attorneys that do not charge for the initial consultation or meeting.
Laws have also become stricter leading to lengthier process in the filing and processing. Bankruptcy is only a temporary solution to the problems .The side effects after filing the bankruptcy are worse, it may lead to severe depression, illness or job losses. The self esteem is lost and one looses respect, trust and creditability in the market. Do we require all these to happen? Think about it. It is time to take a wise decision and have a proper consultation regarding this with a credit counsellor who may suggest some alternative ways to avoid being bankrupt. After all you should also from future point of view when you are planning to solve the present situation.