1. Bankruptcy Isn’t Free
In Sacramento, a Chapter 7 bankruptcy attorney can run anywhere from $1,500-$3,000. Hiring an attorney will dramatically increase the likelihood of a successful bankruptcy. Even if you are willing to risk your financial future and file your bankruptcy without counsel, you will still need to pay court filing fees, online classes, etc.
2. There are Mandatory Classes
You will be required to take two financial management courses. They might be boring, but they will help you understand how to avoid financial trouble in the future. Each class costs around $30 to $50. At my law office, both classes are included with your bankruptcy package free of charge.
3. You Must List All of Your Debts and Creditors
No, there’s not a magic button that you or your attorney can press that will find all of your debt. A credit report is helpful, however it’s up to you make sure you’re not missing something before you file. Some people believe that they can “pick and choose” which debts to include. Bankruptcy law is clear: you must include all of your debts in the bankruptcy.
4. Going to Court Isn’t That Bad
While it may seem daunting at first, your bankruptcy hearing isn’t nearly as terrible as you may think. You will be meeting with your Bankruptcy Trustee, not a judge. The Trustee will ask you a few simple questions. And, despite being called the “Meeting of Creditors,” creditors rarely bother to attend.
5. If You’re Getting Divorced, It Might be Better to File Together
You can divorce your spouse, not your debt. If the debt is in both your names, creditors can go after both of you – even after your divorce is final. Why go through the added cost of two separate bankruptcies when you can file a joint case and each get a fresh start?
6. Rebuilding Your Credit Will Take Work
Bankruptcy is the first step on the road to recovery. However, it is up to you to make sure that you don’t slip back into bad habits. Bankruptcy will ease the burden of your debt, so that you can start to build up positive credit again.
If you have any questions about filing Chapter 7 or Chapter 13 bankruptcy in Sacramento, please call my office at (916) 333-2222. I will answer all of your questions and make the process as easy as possible.