Your debt has spiraled out of control and you are now considering filing for bankruptcy.

Filing bankruptcy has become a looming nightmare for many families and individuals who feel they are at the end of their rope.

Although many consider it the last resort to solve their debt problems, it is not the end of the world. You can get your good credit standing back and even back, but it takes work and discipline.

If your debt is simply more than you can handle, your last option should be yours. It can be scary, especially if you don’t know these 7 facts.

Filing bankruptcy will cost you more than you think.

Filing bankruptcy itself is not that difficult, but you should be prepared before doing it.

Get all your finances in order on everything you owe and count every penny you spend before seeking the services of a bankruptcy attorney. This will save you a lot of time and help shorten the filing process.

So what are the 7 scary facts about filing bankruptcy?

Some people may think that once you file bankruptcy, all your debts just go away. This is not true.

#1. If you are paying a home mortgage and want to keep your home, you will still have to make payments on the “plan” established by the court.

#2. You can surrender your home allowing the mortgage holder to repossess it, thus eliminating the payment. However, you will no longer have your home and will have to find another place to live.

What about my cars?

#3. If you own a car and want to keep it, a portion of the balance owed to the lender is added to your plan payment. Again, it’s not free for you to keep it.

#4. You probably won’t be able to keep luxuries like boats and other recreational vehicles if the court finds them to be an asset that you could turn into cash to pay off your other debts.

Do I have to pay my debt to the IRS?

#5. If you owe the IRS, rest assured they will receive their share. Only if your debt to the IRS has passed the statute of limitations does it evaporate.

What about my credit card debt?

#6. This can generally be considered unsecured debt and will be deemed uncollectible. As a general rule, this debt is not calculated as part of your plan payment.

#7. As you can see, filing for bankruptcy will cost you. All attorney fees, court fees, filing fees, calculated debt loss to creditors, all are added to your plan payment.

You will still have a monthly payment. Not only that, it will be deducted from your paycheck through your payroll deduction. It is still your responsibility to make sure that all payments are made and made on time.

The thing to consider when filing bankruptcy is to weigh the costs involved against what you owe and how long it would take you to eliminate the debt through other means.

If you still feel that filing for bankruptcy is your only option, seek the advice of a good bankruptcy attorney.