You are in deep financial trouble and are unable to keep up with your bills. Chapter 7 or Chapter 13 bankruptcy could help, but hiring an attorney and filing for bankruptcy costs money. How do people in this situation afford bankruptcy?
The first thing you should do is get as much information about bankruptcy as you can, so you can make an informed decision about whether it is your best option. Many law firms that practice bankruptcy offer free consultations with one of their attorneys with no obligation to hire them. Take advantage of this meeting to get answers to all your questions about what the lawyer can do for you and get a sense of how well the two of you would work together.
Paying two fees
The two major expenses associated with bankruptcy are the filing fees and attorney’s fees. Bankruptcy takes place in federal court, and the fees are the same for each type of bankruptcy no matter if you file in Ohio or anywhere else in the country. Attorney’s fees tend to vary based on where you live and how complicated your case is.
Getting rid of your debt
Keep in mind that going through bankruptcy will eliminate some or all of your debt. That should make it much easier for you to afford the temporary expense of your attorney’s help. And it is common for bankruptcy lawyers to offer payment plans spread out over several months to keep the individual payments affordable.
The cost of doing nothing
In almost every case, the cost of not filing for bankruptcy and doing nothing about your debt is much higher. Besides the interest payments and possible garnishment of your wages, there is the turmoil of having to deal with harassing letters and phone calls from debt collectors. Filing for bankruptcy puts an immediate halt to debt collection actions, restoring peace of mind to yourself and your family.