When someone that is deep in debt and is living pay check to pay check and they come to the realization that they need to file bankruptcy – they always fear how much are bankruptcy fees going to cost them to even get started to file bankruptcy. The reality of the issues they don’t really have to worry about the fees once they make a decision to file bankruptcy. The next issue they most likely will face is finding a cheap bankruptcy attorney. Making the decision to file bankruptcy is the hardest decision to make, not paying attorney fees to have someone handle your case.
If I am living pay check to pay check how can I afford an attorney?
The correct question to answer is if you didn’t have most of your unsecured credit card bills could you afford an attorney in 3-4 months? If you answered yes then you can definitely afford to hire and attorney that offers bankruptcy services. The reason this is allowed is because after you meet with an attorney for a free consult they will tell you to stop using all your credit cards and to stop paying all of your credit cards. The reasoning behind this equates to preferential payment and wasted payments. You only continue to pay on the things you plan to keep like a house, car or boat. These items are secured and you need to keep paying them if you plan to reaffirm the debt. People really struggle when attorneys tell them to stop paying on the cards and to save their money and pay for the bankruptcy. It is not a scam. Why would you continue to pay on a debt that you plan to get rid of in bankruptcy? You take some of the money you would pay on the credit cards and you place a retainer on the attorney you want and then you start telling all of your creditors to contact your attorney
Fees when declaring yourself bankrupt vary you should expect to pay $600.00-$1200.00 for your attorney. You need to add an additional $299.00 to file with the court and you need to take bankruptcy classes which will cost another hundred dollars. The amount you pay for attorney always varies by which region you live in. To actually file bankruptcy should not cost you more than $400.00. You then add your attorney fees to get the total cost bankruptcy.
And if you are considering getting some credit cards after bankruptcy, do so carefully given light of the situation you are in.