You are struggling financially and need to file for bankruptcy. A common question is how I can afford the cost of hiring an attorney when I can’t even meet my bills? Many people think they cannot afford to file for bankruptcy. However, bankruptcy laws allow you to eliminate some debts and lower payments on others. This now “freed-up” money, oftentimes hundreds of dollars a month, can be used to cover the cost of your bankruptcy attorney and filing fees.
The U.S. Federal Bankruptcy Laws were designed to give you a fresh start and a second chance when it comes to your finances.
When it comes to the cost of bankruptcy, you will face two expenses: the court filing fees to handle your case and the attorney fees for your bankruptcy lawyer who files your case and represents you in court.
There are several types of bankruptcies to choose from, but the most common consumer bankruptcies are Chapter 7- where most of your debts are forgiven, and Chapter 13- where your debt is reorganized and restructured into a payment plan.
Filing fees remain the same nationwide, but your attorney fees can vary greatly, depending on location, the complexities of your case and your attorney.
|Chapter 7||Chapter 13|
|Attorney fees*||$500 – $3,500||$1,500 – $6,000|
|Total||$835 – $3,835||$1,810 – $6,310|
Here are some tips on how to pay for your bankruptcy:
- Work out a payment plan with your attorney. Payment plans can vary. Some lawyers allow you to spread the payments over six months, others over three months. Most will want payment in full before filing your case. The simple reason: Chapter 7 bankruptcy eliminates most of your debts, so you would not be legally obligated to pay your attorney any outstanding fees after filing.
- Raise the money. Try to earn some additional income. Consider having a garage sale, selling items on consignment, on Ebay or Craigslist (i.e. – think old electronics, hand bags, etc.) or taking on a part-time job to earn some fast cash.
Consumers who owe debt know the fear associated with going to the mailbox, answering the phone when it is an unknown number. This fear is eliminated once hiring an experienced bankruptcy attorney. Debt collectors must stop contacting you immediately and communicate only with your attorney- thanks to the protections in the Fair Debt Collection Practices Act (FDCPA).
If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.