If you want more free information then visit Neil Douglas-Campbell's site, http://debtadvice4free.com. This site provides debt advice and information from someone that has been in a debt crisis situation and is now debt free.
The cost of bankruptcy will hit you in a number of different ways. There is the actual cost of filing for bankruptcy, the legal and counseling fees that you will probably have to pay and the increased cost of credit and insurance premiums over an extended period after your bankruptcy.
Cost of Bankruptcy - Filing Costs
The filing costs for bankruptcy are actually quite small and are as follows:
Chapter 7 - $299
Chapter 13 - $274
Cost of Bankruptcy - Legal and Counseling Costs
You will probably need to assistance of a attorney to file for bankruptcy. There are also new regulations that require you to attend credit counseling before declaring bankruptcy. Typical costs for these are going to be in the region of $700-$2000
Getting Credit and Insurance After Bankruptcy
Your bankruptcy will stay on your records for 10 years (or 7 years for chapter 13). During this period you will find it much more expensive to get credit, including mortgages (for chapter 7 bankruptcy you will probably be unable to get a mortgage at all for 2 years). In the current climate you might find it hard to get a mortgage at all. Insurance companies will use credit records, and consider people that have been bankrupt a higher risk. This will increase your premiums.
The Emotional Cost
There is much less stigma attached to bankruptcy than there used to be, but it's still there. The effect on your family and relationships might be significant, you are certainly going to find out how strong your relationship is. If you have been hiding debts from your family then the double shock of also declaring bankruptcy will push a lot of marriages to breaking point.
- Related Videos
- Related Articles
- Ask / Related Q&A
- 17 Debt Advice Tips for Australians
- Are you getting the right debt advice?
- Debt Advice: Home Loan for Debt Consolidation
- The Cost of Bankruptcy - Don't Expect it to be Small
- Debt Advice Charities Buckled by Recession
- Debt Advice UK
- Choose your desired way to get free from all debt worries with debt advice
- Kick away your debt problems with different tools under the shade of Debt Advice
Simple Ways To Manage Cash
By: Dennis | 16/12/2009Managing your cash effectively need not take a college degree to do well. All it takes is having the motivation and making a habit out of cutting and monitoring your spending. Here are some of the easiest ways of doing it.
Why is debt advice so important?
By: Steven Worlington | 15/12/2009Some people in debt don't actually realise how serious their situation may be. They may be keeping their issues quiet from family and friends, and avoiding seeking help from professionals.
Balance Transfer Tips
By: Adam Singleton | 15/12/2009Before transferring your balance to another credit card to take advantage of a 0% balance transfer make sure that you have compared the conditions of several different card issuers to get the best deal.
Would a debt management plan be right for me?
By: James Mathews | 15/12/2009For many people, debt has become a part of everyday life. However, when it starts to spiral out of control, many people feel like there's nowhere to turn. But help is at hand, and that may come in the form of a debt management plan.
The rights and wrongs of debt help
By: James Mathews | 15/12/2009Debt can be stressful for anyone, and figuring out where to go or who to talk to can often be difficult.
Identifying Forex Robot Scams
By: Pete R. Graham | 15/12/2009Whether you are new to the Forex market or you know quite a lot about it, then you may or may not know about Forex robots. If you do not know much about them, then you need to know that they are machines that automatically perform your currency trading for you. This may sound like a scam all together, but it truthfully is not.
Credit Score
By: IYogi | 15/12/2009Everything you need to know about credit scores in India and how you can maintain a healthy credit rating to get a good credit report. We also tell you how is it calculated for an individual.
Personal Loans For People With Bad Credit: An Option You Must Know
By: Alan Lim | 15/12/2009It is because of the bad repayment behavior in the past that credit rating is totally spoiled today. This creates problem in getting loan for the people. But thanks to option of personal loans for people with bad credit that now anyone can get loan easily.
What Are the Best Debt Fixers?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceIf you're in serious debt you are likely looking for someone or something that can sort out your debt fast - desperately seeking debt fixers! There are people and organizations that can help you, but the solution won't always be quick or easy. The most important thing is your commitment to sorting out your problem, with or without help.
Have You Bought Cars and Incurred Debt? What Are the Consequences in Bankruptcy?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceWith many people losing their jobs at the moment that are going to be a lot of debt problems related to car loans, where people cannot afford the repayments on their cars. What should you do if you are in this situation (especially if you are considering bankruptcy).
If You Are Thinking I'm in Debt Read on For Some Helpful Tips
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceIf you're saying to yourself "I'm in debt" and worrying about it or wondering what you can do about it then you need help and you need to take action now! Debt is like a lot of life issues - they don't get any better if you just ignore them. Tackle the problem head-on now and you will be glad you did in a few years time.
Are Your Debt Worries Justified?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceDebt worries can control your life if you let them. You will know if you have a serious debt problem (you're missing payments etc.) and this IS something to worry about and take action to resolve. However I'm sure that there are lots of people that have significant levels of debt that can easily afford the payments but still spend a lot of time worrying about it.
Where Should You Turn to For Debt Support?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceOne of the most important parts of resolving a debt problem is to get the right level and type of support. Trying to do it all on your own will make it much harder. Who should you turn to?
Will You Be Prosecuted For Debt Fraud?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceDebt collection agencies will often threaten people that owe money with prosecution for fraud. Unfortunately it is just one of the tactics that they use to frighten people into paying money that they can't afford.
If You Have Money Worries Then Confront Them Head-On
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceIf you have money worries then the worst thing that you can do is ignore them. You need to take action as this will stop the situation getting any worse and will give you back a sense of control.
Debt Can Be a Positive Or Negative Force - Which is it For You?
By: Neil Douglas-Campbell | 17/04/2009 | Personal FinanceDebt can be a positive or a negative part of your life depending on how you manage it. For some parts of life it is very nearly essential, like buying a home.