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Filing for Bankruptcy - Cost and Critical Considerations

Filing for Bankruptcy - Cost and Critical Considerations
"""A large number of individuals are experiencing financial difficulties, especially in light of the recent global financial crisis. Numerous corporations and individuals are undergoing buyouts and redundancies. Occasionally, it may take a while for unusual financial circumstances to improve. Numerous individuals may be contemplating bankruptcy at this time, particularly if their reoccurring debts have reached unmanageable proportions and they have no way out.

Declaring Bankruptcy Meaning

Declaring or registering for bankruptcy is a signal to creditors and financial institutions that you will be unable to pay your legally incurred debts. The government, however, has passed a law called the ""Bankruptcy Abuse and Consumer Protection Act"" that makes it more difficult for debtors to declare bankruptcy in response to the large number of individuals who have chosen this option. With the passage of this act, bankruptcy filing fees have increased and Chapter 7 bankruptcy has become more difficult. This act has compelled individuals to file for bankruptcy under Chapter 13. Several provisions in this chapter restrict bankruptcy.

The filing of Chapter 13 bankruptcy

Filing under this chapter of bankruptcy signifies that your finances have been acknowledged in some way. This chapter does not prohibit you from paying your debts, but it facilitates the repayment of existing debts in small, manageable chunks. Chapter 13 bankruptcy may result in the sale of some of your assets by creditors and financial institutions.

Cost of Filing for Bankruptcy

For personal bankruptcy, the cost of declaring bankruptcy can reach $1800. This includes attorney fees and filing expenses. However, the charge also depends on your income and the state in which you reside. The entire legal procedure to obtain a declaration of bankruptcy will take approximately six months. Once you have filed for bankruptcy, your creditors are informed of their standing and no longer have the right to pursue you. However, this also means that your credit rates have been obliterated, but you can rebuild them within a few years.""

" - https://www.affordablecebu.com/
 

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"Filing for Bankruptcy - Cost and Critical Considerations" was written by Mary under the Finance / Wealth category. It has been read 104 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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