Bankruptcy - I cannot pay my bills ... how can I afford an attorney to file bankruptcy?

Quite frankly, if someone is asking themselves this question, they probably cannot afford not to file bankruptcy. Most attorneys request payment in full up front before they will file and the court requires the filing fee unless the debtor is eligible to have it waived. So how can someone afford to pay to file bankruptcy?

With a chapter 7 it is a little bit easier. Once a debtor meets with his or her attorney and decides filing under chapter 7 is the way to go, they can stop paying unsecured debt. For many people, a month or two of minimum payments they were making on credit card payments will cover and can be used for most of the costs of filing.



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Chapter 13 can be a little more challenging because the case is more complex and attorneys fees are usually a little higher. Also, the debtor is usually trying to keep property and some payments to creditors will need to continue. Some attorneys will take a partial payment up front and allow the client to pay the remaining fee through the chapter 13 payment plan.

Another possibility is to work out a payment plan with your attorney. Many attorneys will allow people to make deposits them until they have the full payment and then they will file the case ... like a layaway plan for legal services.

Finally, it might be time to ask for help from a family member or friend. This is a common solution. But keep in mind it should not be a loan. If it is, you will need to list that debt in your bankruptcy. Think of it this way ... is it better to consciously accept the fee knowing up front you cannot repay it or to borrow money thinking you are going to pay back but are never able to pay?

These are avenues for a debtor to consider when considering bankruptcy and he or she does not know how to pay for it. At some point, for many people, the fee just has to be found.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

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