Should I File for Bankruptcy?

shutterstock_99029447In any game, there is that point when you look at the board and think, “There is no way that I can win.”  If you remember back to your childhood and your friend or older sibling was winning, and you “accidentally” upended the board so the inevitable would not occur, then you will know where this conversation is going.  There is really only one reason to file bankruptcy and it has to do with your debts exceeding your assets and future incomes.  Surely there are reasons, divorce, illness, set backs in employment or on investments, and sometimes bad decision making.  Regardless of the reason, the end result is excess debt compared to your income and assets, it is the time where you are out numbered, out flanked, and the only option left is tipping the board.

As you search the net for answers to the question posed above, you will find “alternatives” such as setting budgets, negotiating, and a myriad of self help fixes, but the end paragraph seems to conclude in that you should seek professional help.  The end paragraph is in my opinion meant for the majority, you didn’t get into this mess by yourself and the fact is that you will not likely get out of this mess without help.  That doesn’t mean that alternatives do not exist or are not recommended, but you must ask yourself “Can I execute those alternatives?”  If the answer does not come in the positive, then you need to seek help.

For those that are kicking the tires on bankruptcy, filing usually should be put off until it is necessary.  That necessity comes from garnishments, foreclosures, impending divorce, or other life altering events.  Until such an event forces the filing, there is time to analyze, plan, and make preparations for entering bankruptcy.  This firm works on educating those seeking relief under the bankruptcy code on alternatives, and helps them prepare for filing.  This does not mean hiding assets or anything under handed, but looking at the filing with the due respect that it deserves and preparing for a life that will be different from the one that made you ask the question above.

Costs:

One primary question that comes closely on the heels of should I file, is how much will it cost?

Chapter 7 – No Secured Debts                           $1100

Chapter 7 –  Secured Debts, Home and Car      $1500

Chapter 7- Small Business                                  $2500

Chapter 13 –                                                         $3500, starting payment may be less based on estimated plan payments and term

In addition to the fee for the attorney, there is a filing fee with the court, two credit courses that must be taken, and a charge for credit reports and possibly an asset report.

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