The economy has not yet fully recovered and to say the least, times are still hard. Scores of people are finding it hard to live on their incomes and as a result borrowing has become the order of the day.
The problem with borrowing during harsh economic times is that the risk of being overburdened by debt is quite significant. If you cannot pay what you owe you can be sure that creditors will come knocking on your door demanding what is rightfully theirs.
If you are completely incapable of paying up your debts then the only way out is to file for bankruptcy. No one should have to go through the pains of being bankrupt but when it happens you need to take steps and move forward. If you have any bankruptcy questions then here are a few things that you will be interested to know.
First of all you should understand that the law is there to ensure that you are a protected from creditors when you absolutely have no means of repaying your debts. Be this as it may it is important that you only take this as the very last course of action since it will be etched in your credit file for up to a decade.
The law requires that once you file for bankruptcy, you have to get credit counseling within 180 days. The reason behind this is so that you can be made aware of other options.
It is also very important that you carry out extensive research in regard to the subject so that you can fully understand your position. It is advisable to enlist the services of a bankruptcy attorney to help you file your case. Make sure that your bankruptcy attorney is readily available and that it is possible for you to get in touch with him or her directly.
The benefit of going for an attorney when declaring bankruptcy as opposed to doing the filing yourself is that he/she has the expertise necessary to advise you on the best course of action and satisfactorily answer any bankruptcy questions that you might have.
It is recommended that you go for regular attorneys instead of approaching big law firms which might not be available for personal discussions. Also it could cost you more, which is something that you really do not need in your bankrupt state.
In most cases the fee is about 1700 dollars; but it depends on the lawyer. Some lawyers will charge you according to the amount of debt you are in. It would be better if you could go for one who charges a flat rate for the service. You can either pay the full amount all at once or in installments.
Once the case has been filed for you, the law protects you from harassment by creditors. When you get a call from any of these creditors you will direct them to your lawyer who will explain the situation to them. It is illegal for creditors to harass you about what you owe them once your case has been filed.
You will be required to provide details about any assets that are in your name. Nonexempt assets will be surrendered and used to pay off your debt; property that is exempt will not be touched. The law also requires that you agree to a three to five year plan in which you will offset some of the debt you owe.
You can always more detailed information on the subject including the BAPCPA test (and others) from a qualified lawyer. All in all the essence of this entire process is to enable you get back on track and make wiser credit decisions.