Filing bankruptcy can be scary. there is no other way around that. I should know, I filed personal bankruptcy in 1990. But just because it’s scary doesn’t mean it’s not the right thing to do. It just means that filing for personal bankruptcy is a unexpected process that most people have not properly investigated and they allow themselves to have a knee-jerk emotional reaction.
The good news is that once you get past the assumptions and myths about filing bankruptcy you will learn a number of points that will help you to evaluate the solution in a more well rounded and logical fashion.
The reality is that filing bankruptcy is a very straightforward process once you look at it just for what it is, a process.
It’s a matter of you getting comfortable that bankruptcy is right for you and once that happens then it is primarily an administrative exercise. paperwork and data will need to be gathered, filed, and boxes checked off.
As soon as your paperwork and necessary details conform with what the court is looking for your case just floats upstream with the rest of the bankruptcy filers.
While you are special to me, you really are not to the bankruptcy court. To them you are just another case, next! The court isn’t there to judge you as a person, the individuals at the court just want to do their job, move the paper along and go home at the end of the day to a life they enjoy.
Since about 70 percent of people file a chapter 7 bankruptcy, I’m going to reserve my comments to that process.
There are a few of points at which you will be charged a fee in the bankruptcy filing process. The bankruptcy court will charge a filing fee, the credit counseling group might charge a fee for mandatory pre- and post-bankruptcy counseling, and your bankruptcy attorney will charge you a professional fee for their services. This last fee will vary depending on the rates the attorney is charging. If you shop around you will find a less expensive attorney but in my experience there is a tradeoff between lowest fee and not so great customer service and higher fee and better customer service.
The bankruptcy mills will generally charge the lowest rate but you should have a lower expectation you’ll get exceptional customer service from them. To make their business model work they need to push a large volume of people through at low rates.
As humans we tend to screwup the bankruptcy process by tossing in quite a variety of human emotions into it. But if you allow yourself to get out of your own way and deal with your questions about bankruptcy first you’ll have a much clearer understanding about bankruptcy and move forward with conviction.
The best first step is going to be to click here to find a local bankruptcy attorney and talk to them about what bankruptcy will mean for you. Once you have that information you can then make an informed decision about if bankruptcy is the right move for you to make.
You can also read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy and use the free How to Get Out of Debt Calculator to review your options.
After that, come back here and comment about what seems to make the most sense and let’s discuss that.