Bankruptcy is something that is designed to provide relief from debts to people who need it but filing for bankruptcy is not free. On average, it will cost around $1,400 to file a Chapter 7 case, and this money must usually be paid up front. If you do not currently have the money to use for this, here are some tips to help you get it.
Talk to a lawyer
One of the first things you may want to do is schedule a meeting with a bankruptcy lawyer, and you may be able to do this for free. Many lawyers will allow people to come talk to them one time without paying for it, and this is designed to give people an opportunity to learn more about bankruptcy, the costs, and its effects.
By talking to a lawyer about your case, you will be able to find out the exact details, such as how much it will cost out of your pocket and when this amount must be paid. Additionally, you will find out if bankruptcy is a good choice for you and what the effects of it will be. Knowing this information is vital as you begin preparing to file.
Start saving up as soon as you are considering using bankruptcy
If you decide that filing for bankruptcy is a great option for you, the next step may be to start saving up money so that you can afford to file. To do this, you may want to put aside a small amount of money out of each paycheck, simply to start accumulating some cash to use for the fees you must pay.
Start skipping or lowering your payments to free up cash
One way you might be able to save up enough cash for the costs of bankruptcy is by skipping payments to your credit cards or lowering the amounts you pay. If you have to file for bankruptcy due to having too much debt, your credit score is probably already fairly low, and it will get even lower once you file. Therefore, having a couple more missed payments on your record might not really cause a whole lot of damage to your credit.
While it does cost money to file for bankruptcy, the benefits of filing can far outweigh the money you must spend for legal fees. If you would like to learn more about the costs and benefits, talk to a legal service, like Lifeline Legal LLP.