Can You File For Bankruptcy if You Cannot Afford the Fees?

People often resort to bankruptcy as a way to get out of debt and deal with financial hardships. However, filing for bankruptcy comes with a cost of its own. Apart from various filing fees, debtors who seek professional legal representation to ensure they don’t make any mistakes when filing for bankruptcy have to pay the attorney fees too. Ironically, people who file for bankruptcy because they cannot pay their bills end up with brand new bills to pay.

Because of this, we often get asked whether debtors who cannot afford the bankruptcy fees can even file for Chapter 7 or Chapter 13 bankruptcy. In this article, we are going to explain how this works.

Paying the Bankruptcy and Attorney Fees

This situation is not that uncommon. Nevertheless, many debtors can still get a fresh financial start when filing for bankruptcy even if they are completely broke. There are several ways to do so.

How you pay the attorney fee depends on whether you file for Chapter 7 or Chapter 13 bankruptcy. If you file for the latter, you pay all your debts, including the attorney fee, through a payment plan over three to five years.

Usually, most bankruptcy lawyers in Poway will let you pay a part of the sum upfront and pay the rest through several installments.

On the other hand, since Chapter 7 does not involve a payment plan, many attorneys ask that their fees are paid up front. However, at Chang & Diamond, APC we take pride in understanding the financial hardships our clients go through. Our practice is to accept the filing fee as well as a small portion of our fee. The debtors can then make three of four monthly payments as their case is winding towards discharge.

When the bankruptcy is discharged most of your debts are discharged, with several exceptions like student loans.

Should I File For Bankruptcy on My Own?

Filing for bankruptcy without proper representation is risky for numerous reasons. If you do not file properly, your case might get dismissed. Furthermore, some filing errors may easily get mistaken for a bankruptcy fraud, which is punishable by law.

Some document preparation services offer debtors help in filing. However, these services are not supposed to give legal advice like they do. What’s more, these services are not familiar with local bankruptcy laws like your bankruptcy lawyers in Poway are.

Looking for Reliable Bankruptcy Lawyers in Poway?

Sometimes, small changes like cutting down on costly cell phone plans, pay TV and other services will be enough to collect the money you need to pay for legal representation.

If you are looking for experienced bankruptcy lawyers in Poway, Chang & Diamond, APC can help you obtain your debt relief. If you are interested in a free initial consultation contact us at (619) 312-4900 or (800) 718-8118 or through our website form.