It is not not only businesses and corporations that can file for bankruptcy. An individual can also file for one if he is burdened with liabilities and can't pay his creditors due to unemployment, medical expenses, or other astonishing costs.
Filing for bankruptcy can be the solution to relieve an individual from eligible debts and to give him a new start to manage his finances better.
Options for filingOne has the option be paid off for a Chapter seven or a Chapter 13 bankruptcy. A chapter seven bankruptcy enables one to pay down his creditors by the liquidating all the non-exempt assets like cars, real estates, boats, and the like. This could be done by the bankruptcy trustee who will then allocate the converted cash from liquidation to the creditors. This can discharge the debtor from all eligible debts. A chapter 13 bankruptcy, on the other hand, permits one to propose a payment scheme of 3 to 5 years to pay all his debts.
Hiring a lawyerAlthough it isn't completely required not absolutely necessary to hire a lawyer when filing for bankruptcy, it is still highly recommended. Bankruptcy laws can be complex and firms frequently tell you to seek legal advice. Lawyer's costs can range between $1,600 to $2,000 so go forward and hire one if you can afford to.
FeesA Chapter seven typically costs around $274 whilst a Chapter 13 sometimes to file. Except for these, there are still other court fees to pay like appeal charges and requests for certification among others. Rates are likely to change from state to state.
Although the debtor can be relieved of his liabilities when filing for bankruptcy, it isn't without a disadvantage. The move will think on his credit score and it will make information for him to get credit.
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