After talking to a number of colleagues, friends and family, I have come to the conclusion that America is broke. Not only the government, but just about every American family is sliding down the slope with the country. The lucky ones that are still employed, don’t even realize that there is invisible inflation devaluing every dollar they make. Gasoline prices are close to four dollars and food prices at the grocery store are up about 25% to 50% depending on what you’re buying. Considering all this, it’s obvious that many Americans will be filing bankruptcy in the next few years. The key is, knowing when to do it. Waiting too long will only cost an individual extra money. The only complaint of people filing bankruptcy is they wish they did it sooner. After filing bankruptcy, people look back in retrospect and realize only if they had filed earlier and could get back all the money they pay their creditors and interest in an attempt to avoid a bankruptcy filing.
Many people realize that filing bankruptcy is in their future, but don’t want to spend the money. They continue to make minimum payments to their creditors spinning their wheels like they’re stuck in the mud. It takes a while before the light clicks on and they realize that all this money they’ve been spending could have been put towards hiring a bankruptcy attorney to file. When financial trouble arises, people should not bury their head in the sand, they should consult a bankruptcy attorney to find out if filing bankruptcy is even an option for them. In some cases, the attorney might feel that debt consolidation is a better option or budgeting might get them out of trouble depending on how bad the situation is. Not knowing for sure and plowing forward will just be throwing money away.
It is true that Americans can’t be fully to blame for their lack of knowledge about bankruptcy. The credit industry has done diligence putting a terrible stigma ending with a big scarlet B. on all those that file for bankruptcy. Even though most of this is a lie, if they can keep Americans in the dark about bankruptcy, they can keep them in bondage to debt.
The bottom line is, filing bankruptcy is really not that expensive when considering how the benefits outweigh the negatives. The number one benefit other than the automatic stay, is the bankruptcy discharge. When filing Chapter 7 bankruptcy, the bankruptcy discharge will wipe out all unsecured debt including credit cards, medical bills, personal loans and payday loans. This covers where most Americans get themselves into trouble.
Many people ask the question, The answer is no. Everything will be disclosed by the bankruptcy attorney when filing bankruptcy. The cost to file Chapter 7 bankruptcy is about $300 in filing fees, between $25-$50 apiece for required credit counseling and financial management courses, and then there is the fee of the bankruptcy attorney which could be subjective to the area in which the individual lives. The total cost for filing Chapter 7 will typically run around $2000. When considering the amount of debt that the average person includes in their bankruptcy discharge, the cost of bankruptcy is really quite minimal.