Each and every year thousands of people throughout the United States and millions more around the world contemplate filing bankruptcy. After all, the personal bankruptcy process can be one of the most effective methods when it comes to eliminating large portions of debt. That being said, many people are intimidated by the process itself; they aren’t quite sure how to claim bankruptcy and don’t know what to expect after all is said and done. Fortunately we have the information you need to feel confident about your claim.
When it comes to filing a claim there are really only a handful of things you need to know. Unless you plan to file on your own, which we don’t necessarily recommend, the information you need can be found in the bulleted list below –
- Get An Attorney – although you aren’t required to secure an attorney by law, there are many reasons that you should do so. For starters, an attorney can explain the process in detail, including the difference between the two most common types of bankruptcy – Chapter 7 and Chapter 13. Also, an attorney can assist with the exhausting process of compiling information and submitting documents.
- Your Credit Will Take a Hit – be prepared for a serious blow to your credit rating. A bankruptcy claim will stay on your credit record for at least 7 years, and possibly up to 10 depending on the specific credit agency. This will make it difficult for you to secure financing while in bankruptcy and might also make it difficult for you to rent a house or apartment.
- Filing Can Be Expensive – filling bankruptcy can be an expensive undertaking, particularly at a time when you probably don’t have a lot of excess cash to burn. On average, it costs between $1,500 and $3,000 to file bankruptcy when using an attorney.
Claiming bankruptcy doesn’t have to be a stressful and time-consuming ordeal if you are well prepared going into the process. Consider setting up a free initial consultation with a reputable attorney in your area to learn more.