There are only 3 options!
Lesleamartin:
To file or not to file bankruptcy is a question that many people tend to over analyze to the point of agonizing over it, and for the obvious but completely wrong reasons; like self pride, feeling like a failure, the attached social stigma, am-I-a-deadbeat?, and what-will-the-neighbors-think but to name a few. While all these reasons are quite praise worthy which also tend to indicate the person has a conscience, not one them should be allowed to play any part in the making of decision to declare bankruptcy.
The points that should be strongly considered instead however, are the enormous financial and psychological benefits and relief that come with filing of bankruptcy. It is a hoot when we run up the debt, but it's simply hell in the living room when all the calls made to your house are from debt collection agencies; it makes for a miserable life and takes its heavy toll on families, friends, and foes alike. There are at the present time thousands of so-called credit consolidation and credit-repair companies who will tell you bankruptcy is wrong and that you should let them "eliminate" your debts and send you and the family back to the happily ever after life you had enjoyed before.
And I just saw a pink elephant fly over my house!
First of all, the phone in your house will go quiet within days of the filing of bankruptcy petition in that all creditors will be restrained by the Bankruptcy Court from contacting you for debt collection. This is in essence a Federal Injunction for breach of which there is a $10,000 fine per attempt.
The bankruptcy Trustee will then hold a "Creditors' Meeting" within 30 to 45 days from the date of filing; this meeting is cursory at best and is nothing more than a window dressing aimed at condescending the creditors before discharging their debts. Of all the BK court sessions I have attended, I cannot remember seeing more than one creditor showing up to ask the petitioner the inane question "So, where is the refrigerator now?" He was a pool attorney for either the now defunct Robinson's Mays or Sears.
Unless the Trustee sees something in your application indicating some sort of an asset which she can throw to the creditors, your debts will be discharged at the end of that meeting for which you will receive and official Order of Discharge from the Bankruptcy Court. At that point, your debt odometer will be reset to indicate $0.00.
And yes, as ludicrous as it may sound, bankruptcy actually does provide a much needed fresh start and the petitioner's recent abysmal credit and its score will start to improve and rise. You will start receiving offers to buy this and to buy that on credit left right, and center when 90 days have passed since the date of discharge.
And no; married people can file either jointly or separately and there is no law that says if the wife files for B.K. the husband has to be included. And no again; you cannot file for bankruptcy online and you will have to go down the B.K. courthouse in person, but, there is something that all petitioners HAVE to do online before filing, and that is a mandated credit counseling course, the completion certificate for which has to be attached to the petition.
As for the items you need; well there is the most important item which incidentally you can download from the net and that is the magnificently long and detailed B.K. application from package, a pot of coffee, a fresh black pen and $290.00 filing fee which by the way, can be paid in 2 or 3 monthly payments.
And last but not least, you also wanted to know what your options are, and the best way to answer that is: 3! First option is what you are living with now which is plug and dig, beg, borrow, or rob Mary to pay Paul, every day, every week, every year henceforth for the next two decades and beyond in order to pay off your debts. Second option is to file Chapter 13 which is a reorganization plan and that really is the ugly cousin of the first option. The third option is filing Chapter 7 and eliminating every single dime of your debt portfolio in the space of 60 days.
The decision is yours!
fredrikklaw
