by Maureen Chambers
(San Antonio, Texas, USA)
Personal Bankruptcy should be considered the final option for consumers that are facing high levels of debt. Consumers facing personalbankruptcy should consider all of the other options including settling the credit card and other debts, debt consolidation loans that can reduce the monthly payments to one low interest option and even options that can help the consumer to increase their income while reducing expenses to accommodate an aggressive repayment plan.
In the case that personal bankruptcy is being considered as an option for consumers that are facing high levels of debt, the consumer should consider the true cost of personal bankruptcy and the real figures that they are looking at when it comes to filing the claim.
How much does it really cost to file for personal bankruptcy?
Court fees, mailing costs and government fees are only some of the fees that are associated with filing for personal bankruptcy. Not included in these types of fees are the financial fees that are charged for the attorneys that are in charge of filing the proceedings. The fees and charges that are associated with filing for personal bankruptcy can cost upwards of several thousand dollars.
In addition to the costs that are associated with filing for personal bankruptcy there are multiple types of debt that are not covered under the bankruptcy that must be repaid in full even thought the consumer has made the decision to file for bankruptcy.
There are some types of debts that are not covered throughout the filing process, but what many consumers don’t know is that there is still a percentage of the debt that must be repaid even though the consumer has filed for personal bankruptcy. Rather than a get out of debt free card, the process of filing for bankruptcy is actually quite intensive and expensive – and should be thoroughly considered by all aspects before making the decision to file.
Consumers that have made the decision to file for bankruptcy should be aware that throughout the process and course of filing for bankruptcythe consumer is not eligible for any types of funds that are inherited or won through the lottery. These are considered to be windfalls, and the consumer loses these types of funds to the bankruptcy estate.
In addition, throughout the time the consumer is completing the process tax payments and other types of payments are directed towards thebankruptcy estate, rather than toward the consumer. Consumers should consider these aspects when filing for personal bankruptcy – as part of the potential costs that could be associated with the proceedings.