People facing financial stress, often ask how much it costs to file bankruptcy? After all, money is usually tight, and people do not think that they can afford to file. They also incorrectly assume that they cannot afford to hire a lawyer to represent them. Below you can find the general costs for filing. Everyone has a different financial situation so the cost may differ per person depending on their particular situation.

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Does filing bankruptcy individually or jointly make more sense if you are married?

Whether or not filing bankruptcy individually or jointly is the best option for married couples depends on a number of factors. Legally, married couples can file bankruptcy together with one petition; a joint bankruptcy. Under a joint bankruptcy; all your combined property and debts are included. This may make sense for some couples. For others, it may be better for just one spouse to file alone. Continue reading

Will filing Bankruptcy affect my employment status?

It’s normal to worry about will filing bankruptcy affect my employment status and who will find out about my bankruptcy filing. Many individuals who are considering filing for bankruptcy also worry about the effect of the bankruptcy on future employment. They are typically concerned with if a potential employer finds out about the bankruptcy filing; will the employer be deterred from hiring you? This is especially true if you are employed in a position of trust or employed to manage others money.

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If I need to file for bankruptcy, am I free to choose between a Chapter 7 and a Chapter 13 or am I forced to choose one or the other?

Many people who are considering filing for bankruptcy are unsure which type to file, especially if they do not have a bankruptcy attorney to assist with the case. Most individuals file either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. There are requirements that must be satisfied for each type of bankruptcy, and if an individual meets those requirements, he or she can choose which type of bankruptcy makes the most sense for the situation.

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I own a small business and am considering bankruptcy. What are my best options?

It depends on how your small business is structured. Normally, small business owners have three options for bankruptcy: a Chapter 7, a Chapter 11, and a Chapter 13. Each of those has benefits and drawbacks. Which option is right for you depends on your particular situation.

A Chapter 7 bankruptcy is an option for debtors that are not going to be able to restructure their debts and continue in business. Under federal bankruptcy laws, partnerships, limited liability companies, and corporations can all file bankruptcy under Chapter 7. Also, people who own and operate small businesses as sole proprietorships also may file bankruptcy under Chapter 7, depending on their income. In a Chapter 7 bankruptcy, assets are sold and the creditors are paid to the extent funds are available.

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I have a lot of debt. Can I get rid of all of those debts in a bankruptcy?

Many people think of bankruptcy as their golden ticket to freedom. They may be mired in debt with little income and few options, and decide to file for bankruptcy. They may schedule a meeting with a bankruptcy attorney or even choose to file bankruptcy themselves, only to find out that the majority of their debts cannot be discharged in bankruptcy.

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I had my parents co-sign on my loan. Will my co-signers be liable for my debts if I file for bankruptcy?

Some people are unable to obtain a loan for a car, a home, or other debts unless they have a co-signer. Basically, a co-signer is a person who is responsible for paying back your debt if you are unable to repay it yourself. Creditors will sometimes allow someone with a low credit score or no credit and/or a low income to borrow money, but they may require a co-signer with a better credit score, a higher income, or both before they will loan the money.

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I want to file for bankruptcy but I’m afraid I will be fired. Can I get fired for filing for bankruptcy?

No, you cannot be legally fired for filing for bankruptcy. I will give you a longer explanation about that in a second, but for now you should think about your fears – why are you afraid your employer would fire you if he or she found out about your bankruptcy filing? Bankruptcies are legal and not uncommon, and normally are not necessarily a reflection on your character as a person.

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