Bankruptcy Questions - What To Know Before Filing For Bankruptcy

Are you having debt issues and considering filing for bankruptcy? Do you really know what you are getting into? Bankruptcy is a very serious decision and you need to know before you do it. Here are the answers to the bankruptcy questions you might have.

What will bankruptcy do to my credit?

Here is the answer. Bankruptcy will basically ruin your credit for a couple years. You will struggle to get a good loan, even though you will get bombarded with offers as soon as your filing becomes public. Loan companies and credit card companies know that you cannot file for bankruptcy again for 7 years so they will try to get you to take out a high interest loan or credit card.

How much will bankruptcy cost me?

To file you will pay between $400 and $1,500 depending on what type of bankruptcy you file for and whether you do it on your own or with an attorney. Most people will file for chapter 7 or 13 and will use an attorney. This will run around $1,000 and if it is chapter 13 you will have to pay off your debts as well.

Will I be able to keep my car or home if I file for bankruptcy?

The only way to keep anything when you file for bankruptcy is to not include it in the bankruptcy. If you do your mortgage company will foreclose right away and your auto lender will come and reposess your vehicle. They will do this so they can get as much of their money as possible.

There are many things to consider when it comes to filing for bankruptcy and these are just a few of the many bankruptcy questions you might have. Make sure you are considering all of your options before you spend the money to file and make sure you are making the right decision.