As mentioned in our previous post “Making Chapter 7 Bankruptcy More Affordable,” one often faces a quandary about where to find the money to hire a bankruptcy attorney in phoenix and pay for filing fees for a Bankruptcy.  This is a common dilemma that filers face and we have some suggestions on how to come up with funding:

1)       Stop making payments on unsecured debts – if you are sure you want to file and know that you are eligible, you can stop making payments on credit cards, medical bills, and any other debts that aren’t for assets you intend to keep.  If you’ve been current on your payments to date, you’ll probably be able to save a good chunk of money to pay for your attorney.

 

2)       Stop making payments on secured debts if you don’t want to keep the asset – have an extra car or boat with a loan payment and you aren’t interested in keeping it?  You can stop paying on that too.  This can put the asset into danger of being repossessed prior to filing bankruptcy but if you are in financial trouble and have planned to get rid of the property anyway, you might be better to not sink any more money into it and save up for your Phoenix Bankruptcy Lawyer.

 

3)       Use your Tax Refund – tax refunds are fair game in Bankruptcy to help pay your creditors down.  Plus, you have to be current on filing your tax returns to get your Bankruptcy approved.  So, if you know you’re getting a refund, you can use it to help finance your Bankruptcy Attorney in Phoenix and filing fees.

 

4)       Ask a friend or family member for help – a lot of filers get help from loved ones in order to hire a Bankruptcy Attorney, especially if they have been helping you out with your bills anyway.  Friends and family members are often willing to help if it is going to lead to long term debt resolution.  However, any money received from another person within the 6 months prior to filing for Bankruptcy would be considered income as far as the Means Test is concerned, which determines your eligibility to file for Chapter 7 Bankruptcy.

 

Hopefully one, or a combination, of these options will get you the funding you need to hire a Bankruptcy Attorney in Phoenix and move forward with filing your petition.

If you have any questions about the above information or about filing Bankruptcy in general, please contact our office at 602-952-3232 for a free consultation or submit our Online Case Review form.

For more information, you can also visit our FAQ page.