Pitfalls Of Filing Bankruptcy
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Article Title: Pitfalls Of Filing Bankruptcy
Author: Legal Helpers
Word Count: 660
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Bankruptcy is often the choice that many people lean towards
when they are severely and overwhelmingly in debt. Bankruptcy
can be seen as an easy way out of debt issues though it is truly
a last resort method to debt freedom. There are pitfalls and
downsides to bankruptcy.
Bankruptcy can relieve you from financial debt and obligation,
but does come with a price. You do have to pay a bankruptcy
attorney, usually a minimum of $200.00. On top of this fee you
will have permanent results to your credit report. For the next
10 years, both chapter 7 and chapter 13 bankruptcies appear on
your credit report. Eighty percent of all credit reports carry
errors that can harm your chance of a home loan, car loan or
personal loan. Some employers require a credit report for
position consideration. Poor credit reports showing
unsatisfactory payment history can keep you from receiving a
job. Newspapers will often carry a section releasing bankruptcy
information, since bankruptcy is public knowledge. This could
lead to embarrassment from friends, family and co-workers.
Though bankruptcy is not a process in which a person should be
ashamed society does often frown upon it. With pitfalls being
attached to bankruptcy a better choice perhaps may be debt
consolidation. You can have all of your credit cars and
unsecured debts consolidated into one easy monthly payment. You
can pay down your debts and regain control over your finances.
The choice is up to each individual and decisions vary upon the
situation. It is best to speak to both a debt counselor and a
bankruptcy attorney to see whether or not the pitfalls of
bankruptcy are worth the while.
You do have the option of filing for bankruptcy yourself if it
is unavoidable. This can save the time and money you would
normally spend on a lawyer who would proceed with your claim. It
has been said that a person who represents himself at court has
a fool for a client. Yet with the many do-it-yourself legal kits
that are available for purchase from office supply stores and
via the Internet, those with a straightforward legal case may be
able to save the money they would otherwise have to pay a lawyer
and simply apply to meeting their personal needs.
Keep in mind that a do-it-yourself bankruptcy is easy to do if
you do not have a plethora of fiscal assets and instead your
financial portfolio consists mostly of debts. Yet at the same
time there are some drawbacks to going it alone and prior to
deciding on a course of action, decide if the do-it-yourself
option is really for you!
Filling out the forms is probably the easiest part. Taking them
to the courthouse, having them date stamped, and paying the
filing fee is also a task that can be easily done by you. Yet
where it gets tricky is the burden of informing creditors of
your filing you need to be able to document that you followed
all of the requirements set forth by the state with respect to
your filing and also preparing to potentially defend your
assertion that you do not have the funds needed to pay your
obligations against a creditor.
If something changes and you want to include a previously
excluded debt, there are also provisions that must be met and
you need to ensure that you are able to meet each of these head
on to avoid any penalties for filing late. In the same vein, any
communication from the court must be immediately read and
responded to, and sometimes the legalese is hard to understand.
The clerks of the court cannot give legal advice and you may
find yourself putting in quite a bit of time in front of the
computer doing legal research.
If none of these deter you, then a do-it-yourself bankruptcy
kit might be the way to go for you!
About The Author: Legal Helpers is a debt relief agency helping
people to file for bankruptcy relief under the bankruptcy code.
We're one of the largest consumer bankruptcy firms. Bankruptcy
attorneys answer the phones six days a week and evenings.
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