Bankruptcy is a nightmare to everybody. None of us like to go to that path until we have lost all the other options. But in some cases, this is the only option we life to get rid of our debts and to get back into a normal life. Now, with great availability of online bankruptcy forms, the process of filing bankruptcy becomes much easier for many.
If you do adequate research on the internet, we will find that there are lots of websites that offer you help regarding this matter. You can download the bankruptcy form from the site and fill it up to file bankruptcy. If you understand the process clearly and know exactly what kind of form you need to fill up, you may don’t need to hire a bankruptcy attorney to get advice in this matter.
The Cost of Online Filing of Bankruptcy
It depends upon the type of filing process that you have chosen for you. For example, the cost of chapter 13 bankruptcy and chapter 7 bankruptcies may not cause the same because of the difference between the processes of these two bankruptcy chapters. At different states, different kinds of costs are there for filing bankruptcy. It is always good to consult an advisor for finding the cost as well as the process of filing bankruptcy.
The Benefit of the Online Filing
Filing bankruptcy online is always a better option than the regular filing system because it saves time and money both. Taking the help of the online bankruptcy form processers is the most prudent decision you can make to save your time and money. They can guide you about taking the right bankruptcy form and help you to fill it up in a proper manner.
The Process of Filing Bankruptcy
The rising burden of debt is always a daunting affair for every person. We generally plan our expenses and pay debts properly. However, an emergency occurs when we have to make some unexpected expenses. For example, you need medical treatment for a complex disease. Your family member may need emergency medical attention due to some reasons. In all such cases, you need to make huge expenses, and this happens without any prior notices. As a result, such expenses lead us into financial instability.
If you have an average income, managing such instability would be a difficult matter for you. Paying your debts would become daunting and pay existing debts, you go for more debts. As a result, you end up into a condition where bankruptcy remains the only viable solution. To settle the debt, it is considered as the final resort. If you want to know more about debt consolidation, you can check debt settlement reviews.
To understand the impact of bankruptcy, we need to understand a few simple things. For this reason, the process of bankruptcy needs to be followed.
- The first stage is to find a bankruptcy trustee. For that purpose, you can rely on the internet. Search on Google, and you shall come across many bankruptcy trustees in your location.
- The bankruptcy trustee will help you to craft “Statement of Affairs.” This statement will include your important financial data, like expenses, income, creditors, assets and many more.
- When you complete the bankruptcy filing process, creditors will no longer disturb you with their claim for money.
- To complete the process, it is important to undergo an interview, which will be conducted by government officials. You shall face basic questions in the interview. If your answers are not satisfactory, bankruptcy application would be turned down.
- If you have properties in possession, you should assist the trustee in selling those properties.
- The trustee should also know your financial status. You need to tell the trustee about your monthly income. The trustee will have certain charges that you have to pay every month.
It has to be remembered that the decision of filing bankruptcy should be made after a proper assessment of your financial condition. It seems that bankruptcy is a good way to escape debt, but in the long run, it has many hassles to deliver. You shall find yourself in dire condition when it comes to dealing with bankruptcy. Nevertheless, it is a legal process, and thus you need to follow the process with perfection. For the process, you need help or advice from experts, who are poised with knowledge and expertise in this matter.
Disadvantages of Bankruptcy
There are a lot of drawbacks of filing bankruptcy. The most important thing is that you shall have a negative impact on your credit history. No lender will trust you on giving loans. Lenders would not trust you due to your bankruptcy history. Nevertheless, the credit score is destroyed by filing bankruptcy. You may have undergone hard times to maintain a good credit record as well as score. All your efforts will go into wastage when you have filed bankruptcy. So, before you choose to go for bankruptcy, you need to consider this option. With the bankruptcy filing, you can escape paying your current debts. But, it would not make your life easier in the future. You shall not get any sorts of financial assistance in the future due to your bankrupted status.
Overall, bankruptcy is such an option that can be perfectly defined as a two-edged sword. It has certain benefits in the short run. Nevertheless, it has a lot of disadvantages in the long run. Loan recovery agents or lenders would always encourage you to file bankruptcy when you are unable to pay the money. However, it should be a well-calculated practice for you. Unless you are in terrible financial instability, you should not go for bankruptcy. Instead of that, you should negotiate with creditors so that they can be certain discounts can be availed.
Conclusion
At the conclusion note, the bankruptcy is a viable choice when you are undergoing extreme financial difficulties. You should consider it when you are drowning with a lot of debts to be repaid. This article has provided a brief knowledge of bankruptcy, and hopefully, it helped you perfectly.
