If you are one of the many who are struggling financially, the concept of bankruptcy may have crossed your mind. Maybe you are tired of experiencing difficulty when paying high interest loans or receiving harassing letters from creditors. You may have even tried fixing the problem yourself, but found out that it was impossible to do so and that you are quickly running out of options. The personal bankruptcy process was made for borrowers that find themselves in deep financial trouble and for those that have no other option.
Although people know that the concept of bankruptcy exists, many don’t know the basic details of the process. A lot of questions are being asked about the cost of bankruptcy and the time it takes to file. Here are some of the most common questions answered.
1. How much do I need to pay to claim bankruptcy? It seems ironic that you would need to pay for this when you’re already having financial problems. However, it is a requirement and you will need several hundred dollars to file for yourself. Hiring a bankruptcy attorney or bankruptcy petition preparer (BPP) will generally cost you a lot more because you will have to pay for their services.
2. What is the length of time needed to claim bankruptcy? This will highly depend on whether you hire a bankruptcy attorney or not. Filing for bankruptcy yourself will lengthen the amount of time it takes because you would have to gather the needed documents on your own. Hiring a bankruptcy attorney or a BPP will shorten the length of time; however, it comes with a price.
There are many factors to consider before claiming bankruptcy such as cost and time constraints. For more information on the bankruptcy process and other debt relief options, consider consulting with a financial professional that specializes in debt management.