In what can be considered the ultimate irony, many financially desperate individuals believe that they are too poor and debt-ridden to file for bankruptcy. Can that really be true?
While it is indeed ironic, in some situations it may be true. The good news is that, as with most things in life, there are often workarounds that can allow distressed debtors a path to financial freedom via bankruptcy. Below are some possibilities to investigate and things to consider.
It is not advisable to file for bankruptcy without an attorney
With the possible exception of the United States Tax Code and its intricacies, there are few branches of the law as complex and ever-changing as bankruptcy law. Very few laypersons are able to successfully discharge all their eligible debts by filing for bankruptcy without an attorney. No one wants to undergo the hardships of filing for bankruptcy only to have their case dismissed due to a technicality.
Your attorney may work with you on your fees
Filing for Chapter 13 rather than Chapter 7 makes this option more feasible because your attorney’s fees can be bundled into your bankruptcy filing and paid out over time with your remaining debts.
However, many attorneys will even work with you on filing for Chapter 7 by allowing you to make payments over time, even if that means waiting a while to file the petition. Consumers also can use their tax refunds, stimulus funds or other sources (e.g., borrowing funds from a 401 (k)) to come up with enough cash to file under Chapter 7.
Understand all your options before filing
For the best outcome on your bankruptcy, it is always prudent to learn all about the choices you have to rid yourself of your debt load. Your attorney can help.