Tips For Paying For Bankruptcy When You’re Financially Strapped
Many people who ponder filing for bankruptcy are not only trapped under overwhelming debt but are also struggling financially in general. For example, the 2017 Report of Statistics published in conjunction with the Bankruptcy Abuse Prevention and Consumer Protection Act indicated that while the median average monthly income reported by all debtors who filed was $2,741, the median average reported monthly expenses were almost equal at $2,645. This grim statistic demonstrates the reality of the kind of challenging financial position that leads many people to file for bankruptcy in the first place.
Debtors who are seeking bankruptcy to try to improve their financial situation sometimes find themselves in the position of facing another unexpected reality – the fact that filing for bankruptcy is not free. Bankruptcy may be an investment in your future and a step toward financial restoration, but that doesn’t mean that figuring out how to pay for it is always straightforward.
Typical Fees When Filing for Bankruptcy – and Possible Solutions
The cost of filing for bankruptcy can vary depending on factors such as the type of bankruptcy filed. Regardless of the type, just the filing fees and other costs required to initiate a bankruptcy petition can equate to several hundred dollars or more. In addition, you will also need to pay your attorney. While bankruptcy laws don’t require that debtors hire attorneys and it may seem like a money-saving maneuver to forego one altogether, you can actually end up in a worse situation than you started in if you attempt to pursue bankruptcy on your own and don’t undertake the process appropriately. Having the right legal help can be invaluable and well worth the funds required. The good news is that there are methods to help you find the necessary funds you need to make this investment into your financial future. Possibilities include:
- Using your tax refund for your bankruptcy filing costs
- Taking advantage of any fees that can be waived by the court
- Stopping payment on non-essential debts once you are sure you are pursuing bankruptcy
Speak With an Experienced Bankruptcy Attorney
One of the best ways to figure out how to reconcile the cost of filing for bankruptcy as well as how to proceed in general is to speak to an experienced bankruptcy attorney as soon as you realize there is no realistic escape from your mounting debt. Many bankruptcy attorneys are willing to work with you regarding the cost of filing and you might even be able to work out a payment arrangement that can enable you to pay costs over a period of time. The important thing is to explore your options and find out how you might be able to make filing for bankruptcy work for your situation. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, we understand how frustrating it can be when it seems like you’re stuck in a dark financial hole. You can depend on us to lead you toward your best chance of a brighter financial future post-bankruptcy. Contact us today to start with a free consultation.