Car Accidents and Lawyers to Reduce Stress

Posted on: 13 December 2016

If you are so far in debt that you do not see a way to ever pay it off, bankruptcy could easily be the best option. Unfortunately, there are a lot of misunderstandings and fallacies associated with getting a fresh start through bankruptcy. Therefore, it is a good idea to be aware of the following facts about bankruptcy petitions so that you will have a clear understanding of what to expect in the future. 

#1-If Your Income Is Low Enough, You May Not Be Responsible For The Filing Fees At All

In some instances, the court can waive the fees for filing your bankruptcy petition. Specifically, if the total household income does not exceed 150% of the federal poverty level, the courts can frequently waive all of the fees that would normally apply. Given that the fees for filing the petition for consumer bankruptcy are about $300, being able to receive the benefits associated with declaring bankruptcy without spending the extra cost of filing is likely to be well-received. .

#-2-It Is Often Possible To Split The Filing Fees Into Four Payments

It is a sad fact that many of the people who have the most need to obtain relief from debt will often delay starting the process because they cannot afford it. That means that essentially, some people are too poor to afford bankruptcy. In that instance, it is important to note that the filing fees do not typically need to be paid in full at the time of filing. 

Instead, you are likely to find that you will be permitted to split the payments into four smaller payments. However, many courts may not offer you that option when you file, and it is not always common to know that you have that option. Therefore, be sure to ask about setting up a payment plan when you need to file your petition for bankruptcy.    

#3-As Soon As You File, You Get The Protection Of Bankruptcy

One common misconception about bankruptcy has often been that you must meet with the courts or be at a certain point in the bankruptcy process before you can reap the benefits of this important financial decision. The truth is that as soon as you file the petition, your creditors can longer call you, and repossessing your vehicles is no longer immediately possible, although the terms of your bankruptcy petition may not allow you to keep all of your vehicles.

In conclusion, filing a petition for bankruptcy is the first step towards getting a fresh start and freedom from the debt that is likely to be an overwhelming part of your life. As a result, you need to be aware of the information provided above.