It is not not only businesses and corporations that can file for bankruptcy. An individual can also file for one if he is weighed down with obligations and can no longer pay his creditors due to unemployment, medical costs, or other astonishing expenses. 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 filing

One has the option to file 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 so on. This may be done by the bankruptcy trustee who will then share the converted cash from liquidation to the creditors. This will discharge the debtor from all eligible obligations. A chapter 13 bankruptcy, on the other hand, permits one to propose a payment scheme of 3 to five years to pay all his debts.

Hiring a lawyer

Although it is not absolutely necessary not absolutely necessary to hire a counsel 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 fees can range from $1,600 to $2,000 so go forward and hire one if you can afford to.

Fees

A Chapter seven typically costs around $274 whilst a Chapter thirteen typically costs $189 to file. Except for these, there are still other court fees to pay like appeal costs and requests for certification among others. Rates are likely to change and may alter state to state.

Although the debtor can be relieved of his obligations when filing for bankruptcy, it is not without a downside. The move will think on his credit score and it will make it hard for him for him to get credit.

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