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Cheap Bankruptcy Solutions

 

Cheap BankruptcyWhy are more people looking for bankruptcy options?

  • Close to 80,000 bankruptcies are filed every month in the United States. The top 5 most common reasons are:
    • Medical Expenses – This is the most common cause for individuals to file bankruptcy. Upwards of 62% of all bankruptcies are due to medical expenses, but shockingly, 75% of these bankruptcy cases, the individual DID have some form of health insurance.
    • Loss of Job – Many people have become so reliant on their individual salary and do not have the luxury of an emergency fund, that a loss of job quickly overtakes their financial situation and forces them into bankruptcy.
    • Excess use of credit – Sometimes, expenses get piled up on credit cards, then the uphill battle of interest becomes too great to overcome.
    • Divorce – During a divorce, financial obligations of both parties become a huge debate and struggle, often leading to filing bankruptcy by both parties BEFORE the final divorce has even been completed.
    • Unexpected large expenses – Sometimes life just throws a curve ball. Floods, tornadoes, earthquakes, etc. often not covered by insurance if you have improper coverage or were unaware that your policy didn’t cover certain types of disasters of your home can lead to bankruptcy.

     

    Bankruptcy, like almost all things in this world, costs money; and unfortunately it may not be very affordable—or is it? Here are several different cheap bankruptcy alternatives that are surprisingly not used often enough by consumers.

     

    Credit Counseling

    debt-counseling-servicesWebOne cheap bankruptcy alternative is credit counseling. To be clear, this does not pay off debts. A credit counselor or organization does not cover any of your debt, unless it extends loans or debt consolidations. However, a credit counseling session is an integral step to determine if you truly need to file for bankruptcy. It’s highly possible that because you’re too frustrated or suffocated by your pile of debt that you feel you need an easy way out—that is, bankruptcy. Or if you’re filing, a credit counseling session may be a requirement.

    These sessions usually don’t require any form of payment or are at a very reasonable price. You simply need to see an accredited or recognized counselor working for a non-profit organization or in your local community center. The sessions can last for days or a couple of weeks. The bottom line is you’ll learn strategies on how to manage your present debts very well. It may also help convince your creditors you’re doing something with your finances. They may grant you with a longer grace period to settle repayments or offer some other assistance.

     

    Repayment Plans

    Chapter 13 may be the cheap bankruptcy option you’re looking for. It’s not meant for everyone, but if you pursue it, it means you’re not wiping all your debts away. Instead, you’re structuring repayment. As its name suggests, this is meant for someone who is cash-strapped—for example, you suddenly lose your job and your creditors are coming after you. Filing for Chapter 13 offers you some form of protection, that is, creditors cannot immediately run after your assets or harass you. Meanwhile, they need to abide to the repayment plan that you’re most comfortable with, giving you ample time to raise the money, pay debts over time, and get yourself on track again.

     

    paperwork

    Self-filing

    Another smart cheap bankruptcy choice is to file it on your own. Most of the application forms and documents you need can be obtained easily, even online. If you need a guide, you can check out this post about Filing Cheap Bankruptcy on your own. The main problem with this one, however, is that bankruptcy, especially in some cases, may not be as simple as you’d like to think. This may only make you prone to costlier or more serious mistakes that you don’t find out about until later.

     

    Lawyer Volunteers

    If you want to find  bankruptcy lawyers, you can look for volunteer lawyers. They normally work in your locality or non-profit organization. They are fully registered lawyers who are offering their services in gratis as a way of giving back to the community. They are great, but knowing many may choose their services, it may take a while before your case is handled.

     

    Cheap Bankruptcy Lawyers

    LawyerDig a little deeper, and you can surely meet cheap bankruptcy lawyers. They may offer free debt counseling and free initial consultation. They have packages with prices that are all inclusive. Others are open to installment plans. This option to me is the most appealing. Sure, it’s not free, but you will have peace-of-mind knowing that your case is being handled correctly.

     

    Whatever you choose, just know that bankruptcy should be your last option. It’s something that will stick on your credit for a long period of time, and may prevent you from gaining any credit or make it harder to buy a house/car etc. for several years. The plus side is that it might allow you to get back on your feet and finally get out from the mountain of debt that you find yourself in.