Declaring personal bankruptcy is no laughing matter. It’s a serious step that you will have to study carefully before making your decision, since filing Chapter 7 or Chapter 13 will affect your family’s finances for a long time to come. That’s why this article will cover some frequently asked questions about bankruptcy.
How much does it cost to declare bankruptcy?
Well, at the time of this writing, the cost for Chapter 7 bankruptcy filing is $274, while Chapter 13 would cost you $189. Keep in mind this is only the court filing fee and does not include your legal fees.
Has the new bankruptcy law made it more difficult to declare bankruptcy? Cheap Maryland bankruptcy lawyers
The new bankruptcy law passed in 2005 by Congress and signed by President George W. Bush has made the process more complex. However, contrary to popular misconception, bankruptcy is still available for many Americans who need help. There are some changes such as mandatory credit counseling and having to go through something called a means test in order to determine your financial needs based on income and expenses. This was supposed to keep people from abusing the bankruptcy process when they didn’t really need it.
Do you really need a lawyer to declare bankruptcy?
Following up on the previous question regarding the new bankruptcy law, you have to understand the process has become more difficult. You really need a good bankruptcy lawyer who has kept up with all the changes and can give you the best possible advice for your particular scenario. Going it alone is really not a good option, and you should make sure that your attorney is paying attention to your needs and answering your particular questions.
Generic advice is not good enough.
There are many more questions that you probably have regarding bankruptcy, and you would do well to continue to research the process before visiting a lawyer. This will help you become more informed so you can make better questions during your visit, and you may even save some money by not wasting time asking the most common questions. Keep in mind that a lawyer charges by the hour, and saving money is a good idea if your situation is bad enough to consider bankruptcy.