How to declair bankrupcy?

Question

I have a lot of debt and just can't stay on top of it. What is the down side of bankrupcy or is it really the way to get rid of everything.

Answer 1

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

In general, you must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy – but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.

A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online. The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to pay a fee for credit counseling, you should request a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling, which will generally be about $50, depending on where you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees with you before starting the counseling session.

Once you have completed the required counseling, you must get a certificate as proof.  Credit counseling organizations may not charge an extra fee for the certificate.

so in the long run, Hire an attorney!!!

Answer 2

Well, you CAN declare bankruptcy yourself but it's a really good idea to get a bankruptcy attorney. Depending on what type of bankruptcy you want to file, it will cost anywhere from $500-$1500.

The downsides of bankrupty are many:

It stays on your credit 10 years

It means you can't get a security clearance

Most lenders, rental companies, etc. look really badly on it

It is, bar none, one of the worst things that can be on your credit

HOWEVER

Filing bankruptcy means you have a "fresh start" and some companies may look favorably on that, especially since you can't file it again for ten years

You have no debt

There are many programs set up that will help you after the bankruptcy is discharged

It really is a personal decision but I would not recommend it unless you HAVE to file.