Filing Your Own Bankruptcy

Deciding To File Bankruptcy

There are so many companies that claim to make getting out of debt easier than ever, lowering monthly payments up to 80 percent. These may be good options for some people, but for people who simply can't afford to pay off old and outstanding debts bankruptcy may be the answer. To determine which group a person falls in, they should contact a credit counseling service to make a tentative repayment plan of their debts.

If the payments fit into the person's budget and the term of repayment would be less than the mar of a bankruptcy on their credit report (ie seven to ten years) the person may want to consider credit counseling to repay debts instead of a bankruptcy.

This is important to verify with the credit counselor before making any decision: will paying off these debts actually improve credit? In some cases even paying off the debts in full will not completely repair credit, in some cases the slow payments can be equally damaging on a credit report as a bankruptcy.

Going "It" Alone

Most people use a lawyer to file bankruptcy, this is usually because they are scared of all the legal terms, "mounds" of paper work, and having to deal with judges or lawyers alone seems intimidating. This can be true depending on the individual situation; cases that deal with more than one home, more than one car, alimony or child support, and/or student loans may need the legal expertise of a lawyer.

For people with debts such as credit cards, signature loans, medical bills, and the like plus only one home, one car, and no means to pay off outstanding debts filing yourself may be the way to go. All of the forms to file the bankruptcy are free and depending on the person's family income sometimes the court filing fee and credit counseling fees can be waved.