subject: Decrease Cost To File Bankruptcy [print this page] All people who consider filing bankruptcy is in deep financial debts. The problem is filing for bankruptcy cost money and sometimes a lot of money. How do you decrease cost to file bankruptcy? The answer is relatively simple. Do not be ignorant because you will have to pay someone who knows how to do it. In order to save some money while filing for bankruptcy you need to learn the basics of bankruptcy, its types, laws and process. You do not need to become an expert about it, getting familiar with it is enough to save some cash in the long run.
Knowing the regulations and qualifications will help you prepare yourself when you file for bankruptcy. But why is it many people find it hard to file for bankruptcy? The answer is because bankruptcy has the power to erase your debts and if people take advantage of that, creditors and lenders will run out of business. Then it will be hard for anyone to get credit. We all know that credit is important for individuals and for businesses. So limits and regulations were made to balance both sides.
There are two types of bankruptcy you need to know about, depending on your income, you could probably file for either one of the two types which are chapter 7 and chapter 13. The difference between the two types of bankruptcy is how debts are paid or resolved. In chapter 7 a debtor must first pass a means test. This test is a way to know if you are eligible to file a chapter 7, being eligible to file a chapter 7 means that your income is way below the average income according to your state and that you cannot pay your debts because this will cause you undue hardship, this is proven by taking the means test. The whole idea in chapter 7 is that if an individual cannot pay for his debts then he or she needs to give up his properties to be liquidated and the money generated in the liquidation will be distributed to his or her creditors.
The second type of bankruptcy is chapter 13 which is a reorganization or repayment plan. To be eligible in this type of bankruptcy, an individual must prove that his income exceeds his expenses. Usually people who have an above average income can be eligible to file for this type of bankruptcy.
There are ways you can decrease cost to file bankruptcy. If you want the cheapest way to do it, you can do all the work by yourself. But the risk of making mistake in the process can cause you to lose more assets than you need to. Also, doing all the things alone can be a headache for someone who needs to know a lot of things in just a small matter of time.
The other thing I can suggest requires that you do half of the work and hire a petition preparer or a bankruptcy lawyer to prepare your papers, then pay their flat fee and do the rest of the work by yourself. For more support on how to file for bankruptcy, Visit the link below.
