Because of the bad economic times that people are facing currently, you will be shocked to realize that many people are considering to file for bankruptcy. One of the first step that you should undertake before you file for bankruptcy or you start engaging in the entire process is to learn the advantages and disadvantages that come with engaging in the process.
Since bankruptcy is considered or likened to pressing a financial reset button which is likely to give you a fresh start you should be aware that it will probably come with its liabilities and gifts.
So if you are sure you want to undertake the process, or you want to find out more about it, here are some of the factors that you should consider:
Type of Bankruptcy
According to Bradford Law Offices, Raleigh consumer bankruptcy experts, before you file for bankruptcy, you should decide on the type of it that you want to file. There are two options that one can use. There is the chapter 7 type of bankruptcy which will enable the concerned party to deal with the debt completely; this option is usually recommended to those individuals who have accumulated a high debt of which their low pay cannot service. There is the option of chapter 13 which usually gives the filer the opportunity to come up with the plan on how they will service the debt in a span of either three or five years. So before you undertake the process, it is good that you understand and decide on the one that will be best for you.
Area of Residence
Another key factor that you should put into consideration before filing for bankruptcy is the place in which you reside. This matters a lot because the area in which you live plays a big role in deciding the assets that you are likely to lose or keep if you file for bankruptcy. This is due to the variations of the rules that govern the bankruptcy process across countries or states.
Another factor that you should consider is how much the bankruptcy process will cost you. It is important to know that this process is not cheap. In most cases, the amount of money that the process will cost you depends on your location, and the lawyer that you will contract for the process. Thus before you engage in it, be clear on the amount that you will be required in the entire process and put it in the repayment plan.
Is it the Best Option
Before you file for bankruptcy, you should be able to interrogate yourself and determine, whether it is the best and last option that you are left with. You should be able to know that there are alternative measures that can rescue your financial state other than filling for bankruptcy. One such alternative that people use is debt consolidation. Here you will have the chance to consult with the many financial and debt management agencies that are around who will be able to help you manage your finances responsibly. But you should also be alive to the fact that these alternatives also come with there advantages and disadvantages. But the bottom line is that, file for bankruptcy when it is the only best and last option that you are left with.…