Can You Afford Bankruptcy?

by DeLadurantey Law Office, LLC on February 12, 2014

Can You Afford Bankruptcy?If you are facing financial struggles and you are considering filing a Chapter 7 or Chapter 13, you are probably wondering how much a personal bankruptcy will cost you. When you are already struggling to make ends meet, it can be stressful to think about coming up with the money to pay a lawyer and the filing fees.

Working with the right attorney is critical to your success in bankruptcy. A skilled bankruptcy lawyer can help you save money and keep possession of your assets. While you may be tempted to hire the “cheapest” lawyer you can find, it is important to remember that you sometimes get what you pay for. You don’t want a lawyer that is inexperienced or unreliable.

Many individuals also consider using a bankruptcy petition preparer because they believe it will save them money. While a petition preparer can assist with your paperwork and file the documents, he/she cannot provide you legal advice or otherwise represent you during your case. Thus, if any issues arise in your filing, you are on your own.

Of all people, bankruptcy lawyers are aware that you are struggling financially, so their fees are usually reasonable. This is especially true when you consider the thousands of dollars your attorney can help you eliminate in your bankruptcy filing! Most bankruptcy law firms will work with you to find a way for you to afford your filing, but below are a few ideas:

  • As soon as you believe bankruptcy may be an option, start setting aside small amounts each month. Planning ahead and saving the money you need will pay off in the end.
  • Ask friends or family for monetary gifts. It is important that they understand it is not a loan because the debt will likely be discharged in your bankruptcy case. Of course, you can always decide to voluntarily repay them later.
  • Some individuals borrow from their 401k or other retirement plan. However, this is typically not a good idea due to the tax consequences. For more information on this topic, please read our blog titled “What happens to your retirement funds in bankruptcy?”
  • Talk to your bankruptcy attorney about a payment plan.

Remember, the small fee you pay your lawyer is worth every cent when you discharge the majority of your debt and get a second chance with your financial future.

At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook.

 

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