The True Bankruptcy Cost For The American Consumer
Over the last couple of years many people have been forced to consider filing for bankruptcy without truly appreciating the bankruptcy costs they were signing up for. To file for Chapter 13 or Chapter 7 bankruptcy in most states is not too difficult for a seasoned lawyer, some may even say it is way too easy and there is potential for lawyers and consumers to abuse this privilege.
It is a human right to file for bankruptcy but just because it is legal to do so does not make it ethical to do so without considering another alternative solution for ones own poor financial decisions. Even though some creditors may act badly when they contact clients who have defaulted on their credit repayments.
Bankruptcy costs can vary wildly from county to county based on the requirements of the local legal system in place. The bankruptcy lawyer fees also vary from $250 to over $100 000 depending on the specialized bankruptcy law firm reputation and the size of the bankrupt assets and debt to be processed.
By rule of thumb you get what you pay for; if you are cheap you get cheap service and so on. It is generally advisable to get different quotes when considering to undergo Chapter 7 or Chapter 13 bankruptcy. There is some discomfort to most people when discussing such an intensely personal financial matter such as this but it is imperative the shame not deter you from calling manyspecialist bankruptcy law firms and asking for an average bankruptcy cost projection based on the number of debts and assets potentially affected.
The bankruptcy court fees and filing fees should also be factored into the total bankruptcy cost and projections. You must also ask for an estimated time from filing to judgement. This time will affect the interest payable on the debt and your lawyer must advice you on whether you should try to service the interest or not.
Filing for bankruptcy is never easy because of the embarrassment that comes with it, but it can be made smooth by asking the right questions and talking frankly to your bankruptcy lawyer or attorney.
What are the alternatives to dealing with bankruptcy cost?
For those individuals who find that bankruptcy costs are too high and would like to consider the alternative of either refinancing their mortgages or receiving much needed debt counseling before going ahead and filing Chapter 7. There are some federal programs that were initiated by the Obama administration to help with the repayments and negotiations.
However, be warned that this area of finance is full of unscrupulous vendors who will increase your debt while reducing your monthly repayments and worsen your situation. Before seeking out bankruptcy or remortgaging your old debt it is highly imperative to seek debt counseling.
You did not get so deep into debt only because of circumstance, most of the debt was created through some decisions that had a lot more to do with personal ego, resentment and probably low self-worth. The problem with psychological handicaps like self worth is that filing bankruptcy does not cure it and it may worsen this belief. The whole event could prevent recovery from bankruptcy and this is the true cost of bankruptcy…irrecoverable self esteem.
The streets are littered with homeless people who have not only lost everything but they lost their ultimate possesion which is their belief that they can fix everything again. So before considering to file for Chapter 7 or Chapter 13 consider the total bankruptcy cost including the less spoken about which is the emotional cost.