Many Americans life their lives with a lot of debt hanging over their heads. Often, they live paycheck to paycheck trying to keep this debt under control. One emergency or unexpected bill can cause everything to fall apart. Before long, debt can become a mountain that can cause undue pressure and stress on the debtor. In addition, this debt can cause difficulties in various aspects of life. It can limit a person’s ability to find work or even a rental home.
Is bankruptcy an option?
For many, applying for bankruptcy may feel like admitting failure. However, it can be a necessary help for those suffering from the effects of debt. Filing for bankruptcy can give a person the opportunity to rectify or eliminate much of their debt. It can provide an option to begin again without the stress of living from paycheck to paycheck. Although bankruptcy can have poor effects on credit, it can make it easier to rebuild credit.
Finding a bankruptcy attorney
The main issue with filing for bankruptcy is the cost of an attorney. For many suffering from debt, the cost of attorney can be impossible. Finding Cheap bankruptcy attorneys is necessary for many of those forced to file bankruptcy. For many areas, there are set guidelines and limits for attorney fees. The best method for finding the cheapest attorney is to shop around and find the one that sticks closest to the guidelines for these fees.
Chapter 13 bankruptcy
A chapter 13 bankruptcy is the type of bankruptcy where debt is restructured. An attorney will help determine all debts a person will have. They will then work with the debtor to determine a repayment plan that the debtor can afford. This plan is then approved through the court system to help pay off debt in a manor the debtor can afford. The costs for an attorney for this type of bankruptcy is usually between $2500 and $5500.
Chapter 7 bankruptcy
This type of bankruptcy is often for those unable to repay their debt. In this type of bankruptcy, an attorney will assist in liquidating certain types of property, if owned, to pay back debt. Any remaining debt is often discharged. Attorney fees for this type of bankruptcy usually fall between $1000 and $2500. An attorney can help get through these complicated processes, however, they are not necessary for filing bankruptcy.