What are the Types of Bankruptcies?
Many people believe that bankruptcy is the answer when their finances turn south and become too difficult to manage. But there are some really important aspects that you need to find out beforehand to decide if it is the right option for you. It is essential to get all the facts before you commit to bankruptcy.
- Do you know the different types of bankruptcy?
- Do you know what a 609 letter is?
- Do you know what a debt verification letter is?
- Do you know what you can or can't remove from your debt once you file bankruptcy?
- Do you know the cost of bankruptcy?
- Do you know how long a bankruptcy will stay on your credit?
- Do you know if you can file a bankruptcy on your own?
- Do you know what happens when you file for bankruptcy?
- Are you aware of the downside of bankruptcy?
One of the most important factors before making any quick decisions is to understand that there’s more than one type of bankruptcy. Below, we’ll explore the different types of bankruptcy as well as the appropriate instances in which to file.
Types of Bankruptcies
There are many different types of bankruptcies that a person can file. It really depends on the type of bankruptcy that you need, because each one is so different from the other. It is really important if you choose to file on your own, you know which one you need to file, and then be sure to have the appropriate forms, proof, and statements ready with your petition.
Types of Bankruptcies:
- Chapter 7: Liquidation
- Chapter 9: Municipalities
- Chapter 11: Large Reorganization
- Chapter 12: Family Farmer
- Chapter 13: Repayment Plan
- Chapter 15: Used in Foreign Cases
Fees Associated With Bankruptcies
With so many different types of bankruptcies, it can be confusing to determine which one suits your particular needs. You should do some research to find out what suits your financial problem. Once you do that, you can hire a lawyer, which will cost you a lot of money, or do it yourself with our easy-to-use bankruptcy platform.
Each type of bankruptcy costs a different amount. You will need to look into what type of bankruptcy you wish to file and then learn about the costs associated with it.
|Chapter 7 Bankruptcy||$1,450|
|Reopening a Chapter 7 filing||$260|
|Lawyer fees vary greatly|
|Cheap lawyers||At least $15,000 in total fees|
|Moderate to higher-end attorneys||Fees will exceed $100,000|
|Filing Fee||$300.00 +|
|Lawyer fees||$400 + per hour|
|Chapter 13 Bankruptcy||$3,000|
|Reopening a Chapter 13 filing||$235|
Most of these fees do not include what it will cost to pay your lawyer by the hour to complete the task. This is why the bankruptcy product from DoNotPay is such a wonderful and easy-to-use tool. Don't go broke seeking bankruptcy assistance! If you could afford these high-priced fees, you probably wouldn't be seeking bankruptcy assistance in the first place!
Know for Sure What Goes & What Stays
Don't be misguided as to what will be taken away from the debt that you owe. There are some things that can never be taken away. Know beforehand what goes into bankruptcy and what you will never have to pay back.
Things that can be removed from your debt:
- Social security overpayments
- Veterans assistance loans/overpayments
- Business debts
- Past due rent
- Some tax penalties and unpaid taxes
- Revolving charge accounts
- Some credit card charges
- Collection accounts
- Medical bills
- Personal loans
- Past utility bills
Things that cannot be removed from your debt:
- Student loans (in most cases)
- Tax debt (in some cases)
- Liens against your property
- Recent credit card purchases
- Debts incurred from bad behavior (including embezzlement, larceny, personal injury cases, willful and malicious injury cases, etc.)
- Child support
Don't be confused about what you're actually getting rid of when you file bankruptcy.
How Can DoNotPay Help?
If you are going to file a bankruptcy on your own, you need to take advantage of DoNotPay's bankruptcy product. Their user-friendly platform allows you to file bankruptcy with ease and confidence in a timely fashion. You don't have to pay a huge amount for lawyer fees anymore.
Five Simple Steps to Financial Freedom:
- Search for File for Bankruptcy on DoNotPay.
- 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.
- 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.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- 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.
If you are contemplating filing bankruptcy for your personal and unique financial situation, consider using this DoNotPay product. It is designed to save you a ton of money and hassle.