It’s a catch 22, You need to file bankruptcy because you have no money, but you can’t file bankruptcy because you need money for attorney fees. What are you to do? well here are some facts that you may have been miss-informed about and some suggestions.
- You do not need to be current on your credit cards to be able to file bankruptcy. I get asked this question the most. So here you go. You can file bankruptcy any time you want. You can be current on your payments or you can be behind as many years as you want. There is no requirement one way or another in the bankruptcy code. So if you are considering filing bankruptcy and are still making payments on your credit cards, stop making the payments and save the money for the bankruptcy fees.
- Ask help from your family. Believe me when I tell you every person I know has been in financial difficulties and will recognize that they could have just as easily been in your place. On average, 1.1 million Americans file for bankruptcy each year. Over your adult life, 44 million Americans will have filed bankruptcy.
- Save your money, using credit cards for general living expenses such as food and clothing is okay even if you end up filing bankruptcy the following month so long as you do not overdo it. In the mean time, save your paycheck for the bankruptcy fees.
- Payment plans also help in paying for the bankruptcy fees. In my office, I ask that you pay 50% of the fees when you retain me, and the balance prior to the filing of the bankruptcy. In the mean time, if any creditors call you in between hiring me and filing the bankruptcy, you just tell them to talk to me, your attorney. This will buy you time to come up with the fees. Just know this, all fees have to be filed prior to the filing in chapter 7 bankruptcy. Its the same for any attorney who will file a bankruptcy for you. An attorney can not file your chapter 7 bankruptcy and ask you to pay him after filing. The rule is simple, if you owe money to your attorney at the time of your filing of the bankruptcy, you have to disclose that and your attorney at that time is a creditor like all the other creditors and you do not have to pay him.
Most important is that there is free information available to you. Most bankruptcy attorneys provide free initial consultation. Call our office today and schedule your free consultation with your local bankruptcy attorney.