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One of the most depressing and uncomfortable acts in business is filing for bankruptcy. Before taking this painful step however, there are several affairs you should understand and consider with regards to financial and personal cost.
Legal Fees: While this should be common sense to most people, it can be overlooked. Finding the right attorney can be a daunting task and locating one who doesn’t put his/her hand in your pocket is even more so. Do your best to find legal aid that falls somewhere in between the cost-competency spectrum.
Filing Fee: More often than not, the filing fee will prove to be your biggest expense. With bankruptcies in America increasing at an alarming rate, the filing fee has more than quadrupled when compared to four years ago. Failure to pay the fee in full will lead to a dismissal of your claim.
Interest Rates: For the next several years, you will be forced to pay higher interest rates for any loans you wish to take. This includes homes, automobiles and just about every other type of loan in the market today.
Credit Counseling: While the fees for credit counseling is low and the merits of attending such sessions is relatively high, some people may not wish to be reminded that they are failures on a weekly basis. In addition, forced counseling is believed to be detrimental by some psychiatrists.
Insurance: If you aren’t a fan of high insurance rates, and most of us aren’t, don’t file for bankruptcy if you can avoid it. Your premiums will rise faster than is good for your heart. Insurance companies closely examine your credit score and will adjust your rate accordingly.
Credit: If you thought that you knew what bad credit was, then you have never filed for bankruptcy. Bankruptcy will hound your credit score for the next 10 years . This not only includes large financial transactions, but will be applied to trivial matters like a cell phone plan.

Emotion: There is an unfortunate stigma in western society that bankruptcy equals failure. While this may hold some truth in the short term, it is an absolute incorrect perception for the not so distant future. The average millionaire in the United States has gone bankrupt twice in his or her lifetime. If you have no other choice , go for it you will survive  and maybe have a better life. One day a Credit Company told me “ we rather to lend money to someone who doesn’t owe anything and fall bankrupty  couple years ago , than some one you owe $ 200.000 and have difficulty to pay . It shows a sense of responsabiity.