Posts Tagged ‘bankruptcy alternatives’

If you are planning to file for Chapter 7, first consider the pros and cons of retaining a bankruptcy attorney and going through with it. Take a look at this list of the pros and cons of bankruptcy and decide what is the right move for you in your current financial situation.

The Pros of Bankruptcy:

Hiring a bankruptcy attorney can be a debt management tool to help solve your financial problems.

  1. Fresh Financial Start – The biggest advantage of having a bankruptcy attorney file your claim is obviously the hope of obtaining a fresh financial start once your debts have been discharged.
  2. Automatic Stay on Debts – Creditors must stop their collections efforts when you file for bankruptcy. All collection actions from creditors will be stopped including: foreclosures, repossessions, and garnishments. If they haven’t, contact your bankruptcy attorney immediately to bring the matter in front of a judge.
  3. Protection of Essential Property­– In most states, your home, car and other essentials are exempt so your bankruptcy attorney will ensure you do not wind up homeless or unable to get around.

The Cons of Bankruptcy:


hidden bankruptcy fees

Okay, you already know that filing for bankruptcy is a very serious decision and not one you should make without studying up on and considering alternatives for. When doing so, it’s important to remember that there is no quick fix to bankruptcy as there are countless hidden bankruptcy fees, lawyer’s fee structures, court costs and all around annoyances that are associated with this “simple” way of relieving your debt. Here’s an idea of some of the bankruptcy fees you should expect when filing for bankruptcy.

Bankruptcy Fees #1 – Lawyers’ Fee Structures

Attorney Billing Still Applies to Bankruptcy!


According to a recent Times article, Downturn Pushes More Toward Bankruptcy, March 2010 marked the highest month of bankruptcy filings since the financial crisis started, with almost 6000 bankruptcy petitions filed each day on average. This marks a 9 percent increase from th e month before, and a 38% increase year over year.  In all, 130,000 people filed for bankruptcy in March.

Some of the most common reasons that individuals file for bankruptcy include:

  1. Unemployment
  2. Foreclosure
  3. Divorce
  4. Disruptive Health Problems

As a result of last year’s weakened economy, and its repercussions (the unemployment rate is still rising, as are foreclosure numbers) the amount of people exposed to these situations has grown larger than in the past. (more…)