Many people take different approaches to the ways in which they address their debt. Some individuals may think they can handle their financial liabilities on their own over time and do their best to explore their options for following that route. On the other hand, others may find themselves feeling so overwhelmed by their debt issues that they ignore them as best as possible.
Though you could follow either of these options, neither may be in your best interests when it comes to finally getting your financial affairs back on track. Therefore, you may want to consider a more upfront avenue such as bankruptcy. The two most common types of personal bankruptcy are Chapter 7 and Chapter 13.
Which type is right for you?
When you begin looking at your bankruptcy options, it may help you to understand that you do not simply get to choose which option you use. The circumstances of your situation will play a significant role in whether you meet the qualifications for Chapter 7 or Chapter 13. If you do not have a steady income, Chapter 7 may be the more feasible option, and Chapter 13 could work more in the favor of those with an income and the ability to effectively utilize a repayment plan.
What are the costs of filing?
Because you already face money issues, you may wonder whether you could even file for bankruptcy because of the expenses associated with it. Of course, having the right information could help you when it comes to deciding whether to file a petition. As you consider bankruptcy, you may also want to keep the following information regarding expenses in mind:
- The basic filing fee for a Chapter 7 bankruptcy petition is $335.
- The basic filing fee for a Chapter 13 bankruptcy petition is $310.
- Because these amounts represent the basic fees, you could pay more depending on your case.
- The expenses associated with legal counsel, conversion to a different type of bankruptcy and the return of payments concerning insufficient funds could also affect your situation.
You may think that you cannot afford to file for bankruptcy, so you discount it as an option. However, that does not have to prove true. You could apply to have your fee payments broken down into an installment plan or have the fees waived altogether. Of course, you would have to take the correct steps and meet certain qualifications in order to obtain this assistance. In order to better understand bankruptcy options, possible costs and other important information relating to filing, you may wish to consult with an attorney.