7 Inexpensive Ways to File Bankruptcy

Published: Apr 27, 2020

Picture of scrabble showing bankruptcy lawyer

The coronavirus has caused an unprecedented number of unemployment claims filed. Unfortunately, this has caused some people to research their debt relief options. For the majority of people, a debt relief alternative such as bankruptcy doesn’t cross your mind because you think it is too expensive or you may wonder whether you can keep your house in bankruptcy. Nevertheless, some ways of filing for bankruptcy can be a less costly way of debt relief.

Ways to Make Filing for Chapter 7 Bankruptcy Inexpensive

Let’s say you are planning to apply for Chapter 7 bankruptcy, but you think it is not affordable. Here are some inexpensive tips as you file for Chapter 7.

1. Search for a Bankruptcy Attorney

Conduct some research on Chapter 7 bankruptcy lawyers in your vicinity and contact them. Inquire about Chapter 7 attorney charges and remember that most bankruptcy lawyers don’t charge for the consultation. It is in your best interest to talk to as many attorneys as you can and compare their Chapter 7 filing fees.

2. Choose an Attorney with an Installment Arrangement before Filing Chapter 7

You’ll find Chapter 7 bankruptcy attorneys who provide clients with installment plans. After you start remitting your weekly/monthly payments to the attorney, they’ll begin to deal with creditor’s phone calls. The attorney will also commence working on your bankruptcy forms. After you have completed all the fees, the attorney will then file the Chapter 7 case.

3. Look for a Lawyer with an Installment Plan after Filing Chapter 7

Some attorneys will take the attorney fees after the Chapter 7 case has been filed. This can be quite challenging because the majority of lawyers insist on full payment before they can file the case. This is because attorney fees are released via the Chapter 7 case, and so lawyers prefer taking payment before filing the case. 

4. Appeal for a Waiver of the Cost of Bankruptcy Courses and the Filing Fee 

Your eligibility for a Chapter 7 filing fee waiver is dependent on your level of income. If you don’t qualify for an exemption, you can probably pay the Chapter 7 filing amount in installments. For this to work, you should apply to waive the bankruptcy filing fee (Bankruptcy Official Form B 3A) alongside your Chapter 7 petition.

It is possible to be eligible for a fee waiver in both bankruptcy cases. Still, you are required to deal directly with the firm offering the Debtor Education Course and the Credit Counseling Course to establish whether you are eligible for the waiver.

5. Look at Filing a Chapter 7 Pro Se

In a Chapter 7 case, hiring a bankruptcy attorney is not a must. However, some people still choose to file the case without legal representation. If you decide to proceed without a lawyer, there are lots of online resources that can come in handy. Our website offers a rundown of both the Chapter 7 exercise and Chapter 7 calculator. Besides, in our bankruptcy blog, you can find extra Chapter 7 bankruptcy information.

Additional information includes how you can file without a US Courts lawyer. Check local bankruptcy courts for details on how you can apply for bankruptcy without an attorney. If you cannot access online information, you can make a call to the local bankruptcy Clerk of Court’s Office. You’ve got to keep in mind that the rules and laws of bankruptcy are subject to change. Also, information used in Means Test calculations and the official bankruptcy application forms change regularly.

 If you decide to proceed with Chapter 7 without a lawyer, make sure that you have the most recent information. 

Be Extra Cautious When Filing For Chapter 7 without a Lawyer.

If you decide to file for Chapter 7 without legal representation, be very careful. After filing a Chapter 7 case, you might find it impossible to dismiss the case voluntarily. And in case the Chapter 7 trustee decides to sell your assets to repay the debts, there might be nothing you can do to halt the procedure.

Filing for Chapter 13 may be an okay alternative to research. In most cases, lots of bankruptcy lawyers include a large portion of their fees in the Chapter 13 arrangement. For this option, you may want to research state specific articles for your state. For example, in California, you may search for Chapter 13 Bankruptcy California, or in Georgia, you may search Chapter 13 Bankruptcy Georgia.

6. Ask for Free Legal Aid

Whether you qualify for legal assistance is determined by your financial state. In case you are eligible, you will be given a lawyer to assist you in your bankruptcy journey.

In some states, there are legal aid offices that you can get in touch with. Other states offer Pro Bono services via the State’s Bar Associations.

7. Borrow Cash from Friends or Family Members

Some debtors cover the Chapter 7 filing fees by borrowing from friends or family members. This is where it gets tricky! You can’t repay the debt to your friends or family members prior to filing for Chapter 7 or in the course of the Chapter 7 case. 

It might be necessary to reveal the debt on your bankruptcy forms. Usually, debts owed to family or friends are discharged via the Chapter 7 bankruptcy. Now, if you decide to repay the debt after the conclusion of the Chapter 7 case, it is allowed.

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