Filing for bankruptcy can be a stressful and overwhelming experience, especially when you’re already struggling with financial difficulties. One of the most common concerns people have is the cost of hiring a bankruptcy attorney. You might be wondering, “How can I possibly afford an attorney when I can’t even keep up with my bills?”
The good news is that there are several ways to make legal help more affordable, and working with a bankruptcy attorney can actually save you money and stress in the long run. Let’s explore the options available to help you afford a bankruptcy attorney without breaking the bank.
Hiring an attorney can feel like an extra expense when you’re already in a tough spot, but having a professional guide you through the process can make all the difference. A bankruptcy attorney helps ensure that your paperwork is filled out correctly, your rights are protected, and your debts are discharged as efficiently as possible. Mistakes in the filing process can lead to delays, increased costs, or even your case being dismissed.
Bankruptcy costs can vary depending on the complexity of your case and your location, but generally include attorney fees and court filing fees.
Attorney fees can range from a few hundred to a few thousand dollars, depending on whether you’re filing for Chapter 7 or Chapter 13 bankruptcy.
In addition, you’ll need to pay court costs, which are usually a few hundred dollars. Although these costs might seem high, the peace of mind and financial fresh start they provide can be invaluable.
If you’re filing for Chapter 7 bankruptcy, which involves liquidating non-exempt assets to pay off creditors, many attorneys offer installment plans for their fees. This means you can start the process with a down payment and continue to pay off the remaining attorney fees in manageable installments over time.
This approach makes it easier to get started without having to come up with the full fee upfront.
In a Chapter 13 bankruptcy, you create a repayment plan to pay off your debts over three to five years.
One of the benefits of Chapter 13 is that your attorney fees can often be included in the repayment plan. This means that instead of paying the attorney fees upfront, they become part of the regular payments you make under the court-approved plan.
This can significantly reduce the financial burden at the start of your case.
Many bankruptcy attorneys understand that clients are already facing financial hardships, so they may offer lower initial payments to cover just the necessary court costs and a small portion of the attorney fees.
These initial costs are usually quite affordable, allowing you to begin the bankruptcy process without a major upfront expense.
Sometimes, unexpected funds like tax refunds, work bonuses, or even small windfalls from selling personal items can help cover the costs of a bankruptcy attorney. If you know that you have a tax refund coming, it could be a great way to fund your legal fees without impacting your monthly budget.
While borrowing money from family or friends can be uncomfortable, it’s often a viable option for covering bankruptcy costs. If you go this route, make sure to be upfront about your ability to repay and consider formalizing the loan with clear terms to avoid any misunderstandings later on.
If your income is low, you may qualify for legal aid or pro bono (free) legal services. Many nonprofit organizations and legal aid societies offer assistance to those who cannot afford to hire an attorney. These services can be a lifeline if you’re struggling to cover the costs associated with filing for bankruptcy.
Not all bankruptcy attorneys charge the same fees or offer the same payment options, so it pays to shop around. Consider contacting multiple attorneys to compare their fees and find one that fits your budget. Be sure to ask about payment plans and any other ways they can help make their services more affordable.
Many bankruptcy attorneys offer free initial consultations. These consultations are a great opportunity to discuss your case, understand the costs involved, and see if the attorney is a good fit for you.
During the consultation, don’t be afraid to ask about discounts, sliding scale fees, or flexible payment plans. Many attorneys are willing to work with clients to make their services more accessible.
While some bankruptcy attorneys can be pricey, many offer flexible payment options that make their services affordable. Payment plans, reduced initial costs, and the inclusion of fees in a Chapter 13 repayment plan are all strategies that can help you afford legal help.
Another common misconception is that you have to pay all the attorney fees upfront. However, most bankruptcy attorneys are aware of the financial strain their clients are under and offer various payment arrangements to ease the burden. This might include installment plans or incorporating fees into the bankruptcy plan itself.
Hiring a bankruptcy attorney can significantly increase your chances of a successful bankruptcy filing. They know the ins and outs of the legal system, can help you avoid common pitfalls, and ensure that all paperwork is filed correctly and on time.
Filing for bankruptcy on your own can be risky. Even small mistakes on your forms can lead to delays, additional costs, or even dismissal of your case. An experienced attorney can help you navigate the process and avoid these costly errors.
At Debt Advisors Law Offices, Attorneys Michael Georg and Chad Schomburg have been dedicated to helping Wisconsinites find financial relief for over fifteen years. If you’re overwhelmed by debt from medical bills, credit cards, rent, utilities, or mortgage payments—especially in the wake of COVID-19—you are not alone. We’ve guided thousands of people just like you to a fresh start through bankruptcy, and we can help you too.
Don’t let the fear of attorney costs hold you back; there are affordable options available under Chapter 7 or Chapter 13 bankruptcy. Get your free consultation today to explore your options and take the first step towards financial freedom.