Filing for bankruptcy is a difficult decision that usually follows a long and painful battle with your personal finances. Choosing to file for bankruptcy will free you from your debts, however, the losses may include your property, your credit and the ability to borrow money again for a very long time. On top of this, you will need to consider the costs of filing fees. Houston bankruptcy attorney fees will vary from other cities, and it is important to consider this when you are filing for bankruptcy. There are many pros and cons to filing for bankruptcy; however, at the end of the day, you will have to make difficult decisions and sacrifices to settle your case.
What Are Chapter 7 Bankruptcy Fees Like?
If you file for Chapter 7 bankruptcy, you can relieve your debts in as little as three to six months. However, the effects of your financial situation will be seen on your credit report for as long as a decade after you have filed. Combined with all of your missed payments, repossessions and defaults, filing for bankruptcy can prevent you from borrowing money for a very long time, and it can be next to impossible to qualify for a mortgage. While many states will work with you to ensure that you can keep your home, it is possible that you could lose all or some of your other property. It is also possible that the only people who will lend to you after you have declared Chapter 7 bankruptcy are those who specialize in lending to people who have filed for bankruptcy. This means that you will pay extraordinary interest rates and may have exceptionally high payments if you purchase anything with a loan or on credit.
What about Chapter 13 Bankruptcy?
There is a second type of bankruptcy called Chapter 13 bankruptcy. In this plan, you work with the courts and creditors to set up a repayment plan that is set up for three or five years depending on your income. There are some advantages to filing Chapter 13 bankruptcy over Chapter 7. Chapter 13 differs from Chapter 7 because it works as a mediator rather than liquidating all of your assets. It can help you prevent or stop foreclosure proceedings on your house as well. Under Chapter 13, you will be required to repay all of your debts, and the case will not be considered closed until the debts are paid. However, not everyone qualifies for Chapter 13. If your income is too low or your debt is too high, you may not qualify for mediation.Jed Shaw, a licensed bankruptcy attorney, can provide you with an alternative solution to filing bankruptcy that can help you free yourself from debt without the burden of a nasty mark on your credit report.
