subject: Bankruptcy Costs More Than You May Think [print this page] Many people struggling financially across the United States consider the option of bankruptcy as opposed to trying to get a control of their finances and rebuilding their credit. Read on to know which is the smarter choice- filing for bankruptcy or repairing ones credit.
How much does it cost to go bankrupt? It may be more than you expect. It may be more affordable, on the other hand, to use credit repair services, which can help you to fix your credit rather than taking you down the road to bankruptcy. It is a good idea for individuals to consider all of their options when it comes to filing bankruptcy. Is it really the only route for you to take? In some cases, the answer is yes and even at the higher cost, it may be worthwhile. For others, there are other solutions worth considering.
Is Credit Restoration Better?
When you take a closer look at the true cost of filing for bankruptcy, you may be shocked to learn just how expensive it can be.
* Initial filing fees for filing bankruptcy are often the first big thing to take into consideration. In general, pre-filing fees may be about $75 or more. This will vary based on who you are working with.
* If, after you file bankruptcy, there is a need to make amendments to it, you can expect to pay more, sometimes a per-instance charge as much as $30 apiece. Sometimes, this is much higher.
* If you are filing Chapter 13 bankruptcy, attorney fees a significantly higher and can top thousands of dollars over the three to five year repayment period. These fees may be wrapped into the Chapter 13 payments you will make.
* If you are filing Chapter 7 bankruptcy, it will cost several hundred dollars plus the fee that your attorney charges. In this instance, you will need to pay the fee to your attorney first, before the bankruptcy can be filed at all.
In some cases, you will be better off improving your credit through a credit report repair service. This may help you to rebuild your credit and get out of debt through consolidation. You can increase your credit score faster this way, too.
For those who are considering filing bankruptcy, determine if the financial cost to doing so is worthwhile. Remember, you will likely have higher interest rates going forward, too, at least for a few years. All of this can add up to be a very costly transaction for you. Take all of this into consideration before you make the decision to invest in bankruptcy. For many people, it makes sense to invest in bankruptcy. For others, credit repair is best.
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