If you spouse is your debts guarantor, then he or she will have to responsible for it since they had legally sign to guarantee your payment to the bank.

It is similar to the case of supplementary credit card. Since they are the legal holder of the card register under their name, then they will have to responsible on the debts under their name only.

Last but not least, you bankruptcy will not affect your spouse’s credit rating as long as the unsettled debts are not register under their name.

For detail information, please do check with your lawyer.

The filling cost of a bankruptcy is about $300.00, but you still need to pay lawyer fees for preparing legal documentation as well as attending meeting with your banker. The lawyer varies from $1,000.00 to $3,000 depending on the complication of your case.

Please to do most of the work yourself so that you can cut down on the lawyer fees.  Organize and proper keeping of the document will cut down cost on your lawyer as well.  Please do check with your lawyer if he can be absent from the meeting with the banker that will significant cut down the cost.

So it does cost money if you file a bankruptcy, please do consider others alternatives.

How ?

Filling bankruptcy is not an easy task, it involves a lot of effort and time. If it is not done properly and professionally, it may affect the rest of your life. You are always advice to seek professional help in filling a bankruptcy.

In general, you may file bankruptcy under chapter 7 or chapter 13 depending on your debts category as well as your income bracket. Chapter 7 generally help you to get rid of all debts except study loan and taxes where Chapter 13 does not erase all your debts, instead it re-structure all your debts and provide you a breathing space so that you can repay your debts with new installment scheme.

No matter you are filling under Chapter 7 or Chapter 13, the implication on your future credit rating is still the same – it is still BAD.

Please do consider others alternative if you can. If the only way out is file a bankruptcy, please seek advice from professional.

Should you file a bankruptcy ?  Everyone aware that life after bankruptcy is not easy especially it is hard for you to regain your credit rating, a bankruptcy may affect your credit rating as minimum as 7 years, so you end up paying rocket high interest in the future should you apply for a loan.

Do you have any alternative ?

Of course your do.

Please consider the following options :

1)     Looking for more income – this is the best solution, such as doing additional job, work longer hours and during holiday.  Additional income may ease your pressure to declare bankruptcy.

2)     Restructure your loans and debts  – talk to your banker, negotiate a new payment terms. Most banker are willing to discuss, as long as you come forward, they are willing to help. Please take note that they are as worried as you are should you default your installment, all they want is your payment.

3)     Seek help from Professional  – this is a very important steps towards getting rid of bankruptcy pressure.  Seek help from professional debts advisor, they will be able to review your current situation and advice a proper way to restructure your existing loan.

Filling for bankruptcy is not as easy as you think, not only it cost you more money, it cost you time as well as having bad credit rating in the future.

Please try to look at the above alternative should you intended to file a self bankruptcy now.

Please consider the following implication before you proceed to file a bankruptcy.

1)  Damage your credit rating – May be it is not important to you at the moment, but your life does not stop here. A bad credit rating will affect your future loan application should you decided to get a car or house loan when your financial status gets better in the future, even you could have get one, the interest rate will be very high.

2)  You are not totally discharge – Some of the debts cannot be discharge even you file a bankruptcy under chapter 7 such as taxes and study loans. If you have those loans on hand, filling a bankruptcy will not get you out of trouble. Please consult bankruptcy professional to understand which loan fall under this categories.

3) You will not be able to keep what you want – you are out of control, you are force to sell off what you have and the money will be used to settle your debts.  Bear in mind that you may force to sell your assets way below market price; this is what we call foreclosure.

Please consult a bankruptcy professional before you file a bankruptcy, get the detail information and try to look for others alternative solution.

Bankruptcy can be filed by creditors against the individual or organization who are not able to repay their debts or it can be filed by individual or organization themselves, we called this self declared bankruptcy.

If you are thinking of filling a bankruptcy may help you to get protection from your debtors, please think twice as the implication of filling a bankruptcy may impact your life in the future. You should consult bankruptcy professional such as banker, financial advisor, lawyer as well as debts advisor.

On top of that, filling bankruptcy is not free, it involves cost such as lawyer fees, court filling fees etc, it is a long winding process as well.