Should I File For Bankruptcy?

File for Bankruptcy Should I File For Bankruptcy?

Should I File For Bankruptcy?

If you've been fielding calls from collectors, and disputing your debts with a 609 letter or a debt verification letter hasn't gotten you anywhere, you may be wondering, "Should I file for bankruptcy?" 

There are a lot of things to think about before you make a decision as serious as filing for bankruptcy. Bankruptcy can impact your life in numerous ways. For that reason, you need to be clear on what happens when you file for bankruptcy and how bankruptcy affects your credit score before deciding whether to go ahead with the process. Filing for bankruptcy is something whose impact you want to fully understand.

If you think bankruptcy could be in your future, read on to learn more about how the process works and how DoNotPay can make it less painful. 

What Is The Downside to Filing for Bankruptcy?

Filing for bankruptcy can get you at least temporary relief from creditors, who aren't allowed to press you for payments while the bankruptcy process plays out. If you file for Chapter 7 bankruptcy, moreover, you may get your debts discharged altogether.

You will need to weigh whether those benefits outweigh the negative aspects of bankruptcy, however. The downside to bankruptcy includes its impact on your credit score, the possibility that you could lose your property, and the potential for employers who check your credit report to decline to hire you in the future. A lower credit score can also prevent you from getting loans at reasonable rates in the future.

Will I Lose My Property If I File For Bankruptcy?

This really depends on what type of bankruptcy process you're considering. Let's take a look at the two most common types for individuals.

Chapter 7

If your income is deemed too low to be able to repay your debts, you may be able to file for Chapter 7 bankruptcy. As a part of this process, it is possible that you could lose much of your property, which would be sold to help pay what you owe to your creditorsCertain assets could still be protected, however, including your

  • Retirement account
  • Home
  • Car

Chapter 13

Filers for Chapter 13 bankruptcy generally have a higher income and are allowed to come up with a plan to repay their creditors over 3-5 years. Under this process, filers for bankruptcy do not lose their property as long as they stick to the payment plan. 

How Long Does a Bankruptcy Stay on Your Credit Report?

How long a bankruptcy stays on your credit report will also vary depending on the type of bankruptcy involved.

1. Chapter 7 A notation regarding a Chapter 7 bankruptcy will remain on your report for ten years.

2. Chapter 13 In Chapter 13 bankruptcy cases, your credit report will have information on the bankruptcy for seven years after the date of filing.

How Much Does It Cost to File for Bankruptcy?

The cost to file for bankruptcy differs depending on whether you file for Chapter 7 or Chapter 13.

Chapter 7$335
Chapter 13$310

There will also be fees that you'll need to pay for the required credit counseling as part of the bankruptcy process. And let's not forget the attorney fees, should you choose to use one.

How to File for Bankruptcy Yourself

If you want to avoid attorney fees, it is technically possible to file for bankruptcy on your own, although doing so correctly without an attorney can be quite challenging. In brief, the steps to file for bankruptcy on your own are as follows:

  1. Make sure you have all the necessary documents
  2. Take the required credit counseling course
  3. Fill out the appropriate forms
  4. Get your filing fee and file the forms in court

Of course, the nitty-gritty involved in all the paperwork can be challenging for anyone.  If you could use some assistance but don't want to spring for a lawyer, now you have another option: DoNotPay. 

How To File For Bankruptcy With the Help of DoNotPay

If you want to file for bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps.

How to file for bankruptcy using DoNotPay:

  1. Search for File for Bankruptcy on DoNotPay.

     

  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.

     

  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.

     

  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.

     

  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.

     

And that's it! Once done, the court will give you:

  • Your bankruptcy case number
  • The name of your bankruptcy trustee
  • The date, time, and location of your meeting with your trustee

At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!

Why Use DoNotPay to File for Bankruptcy?

DoNotPay can make the process of filing for bankruptcy much less of a hassle. We'll ask for all the information needed to help you get started without sending you on a lot of wild goose chases.  DoNotPay is:

  • Fast Helps you do what you need to do quickly
  • Easy Simplifies the process of finding the necessary forms and helps you figure out where to file them
  • Successful Gets you the results you need to get free of debt collection calls

Keep in mind that DoNotPay can currently only help individuals with the bankruptcy process. We cannot assist with corporate bankruptcies.

Check out DoNotPay to learn all the ways it can help you with filing for bankruptcy and so much more.

What Else Can DoNotPay Do?

Aside from filing for bankruptcy DoNotPay can also help you with:

Sign up today and get help for a lot of your legal needs!

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