Yesterday, we talked about the official court costs of filing for personal bankruptcy, which are quite low.  Today, we’ll cover other, often unexpected costs of bankruptcy.  Here are more general court-related costs:

• Attorney fees
• Credit Counseling Fees
• Petition Fees
• Amendment Fees
• Reopening Fees
• Cost of converting from Ch. 13 to Ch. 7

Other long-term costs include:

• Higher interest rates on home loans
• Higher insurance rates

If you can possibly work your way out of debt through credit counseling, do so.  Bankruptcy is a huge event in anyone’s life, and fraught with frustrating situations.  If bankruptcy is your only option, know that, with a little work, you can rebuild your credit afterwords.

One way to rebuild credit after a bankruptcy is to make a major purchase, such as a car loan.  If the credit agencies see you’ve been carefully, dutifully paying your car loan payments on time every month, they’re likely to think better of you, and maybe even raise your credit score.  If you’re looking for an auto dealer that specializes in helping Bankruptcy Survivors, Bankruptcy Resource Group (BRG) can help. BRG maintains a nationwide network of such auto dealers.  Visit the Bankruptcy Resource Group homepage to learn more.

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