Rhode Island Bankruptcy Information

Are you considering filing for bankruptcy? You need to get all the facts so that you can make an informed decision.

Bankruptcy is a difficult situation to be in and many people don’t know the complicated procedures that declaring personal bankruptcy entails. Here are some facts that you need to know about your RI bankruptcy.

Important Information

  • Arm yourself with information about the attorney’s fees that you will be paying. The usual fee charged ranges from $1,200 to $1,500. For someone who’s already in huge debt and won’t even be able to afford to pay this much at all, this amount can seem very steep. There are some bankruptcy lawyers who may charge as low as $950 and this includes the $350 filing fee. Fees and charges vary case to case because some lawyers tend to customize their service fees depending on the complexity of their client’s problem. There are instances where clients are charged as much as $5,000 just for the attorney and filing fee. Do not go into this ordeal as this is definitely a scam. It is against the stipulation in the Chapter 7 of the RI Bankruptcy wherein the court restricts lawyers from charge clients more than $1,500.
  • Applying for single or couple bankruptcy yields the same amount of fees. If you want to file for personal bankruptcy together with your spouse, there is no need to undergo a different procedure because it is as if you are applying for sole bankruptcy online. However, you may first have to consult with an experienced lawyer if you are really in need to apply for dual bankruptcy depending on what works best for you and your family.
  • If you file RI bankruptcy and you have pending income federal taxes to be paid, this could easily be waived by the government. However, take note that you have to wait for at least three years for the processing of your federal income tax return.
  • If you are living outside of Rhode Island but you have properties that you want to keep while you undergo a bankruptcy, you can still process your application if you have lived in RI for at least six months or 180 days. However, if you are newly-transferred to this state, you may still be under the laws and regulations from your previous location. The thing is the longer you have lived or intend to live in Rhode Island, the better it is for you when you apply for bankruptcy state.
  • A bankruptcy application is the easiest way for you to get out of all your debts. But how can you make sure that all your liabilities are taken out of your responsibility? Well, the best thing is for you to declare all your creditors and the amount you owe them when you file for RI bankruptcy. You can request for a 12-month statement of accounts. If you do not list all the names of your creditors, then it is likely that your debts will still be carried-over after your application for bankruptcy has been approved.