It’s the classic Catch-22. How do I pay for bankruptcy when the problem is there isn’t enough money to pay my debts? But there are ways. You can afford bankruptcy. You may find some solutions obvious, and you may need to be creative for others.
STOP PAYING YOUR CREDIT CARDS
Stop paying on your credit cards and any other debts that you will be eliminating in your bankruptcy. You may have already had to stop paying them. However, you might fear that stopping payments will immediately result in something serious happening, though you’re not sure what. I’ve found the most common reason is that you probably hate the idea of filing bankruptcy (the feelings of failure and guilt), and find it extremely difficult to stop paying when you’ve done so your whole life. The reason I often hear is “I owe these people the money! They were good enough to lend it to me in the first place.”
This feeling doesn’t take into account that the companies are not “people.” It’s one thing to owe your brother-in-law, for example, compared to owing money to a huge, multi-billion, multi-national corporation. These corporations get tax breaks or have already built in some non-payments into their profit formulas, making money on the interest you’ve probably already paid them. They aren’t hurting. The people who call you from the company are simply working there. It’s not “their” money. They’ll still have their jobs, whether you pay the company or not.
WORK OUT A PAYMENT PLAN FOR THE BANKRUPTCY FEES
Most attorneys are willing to set up a payment plan over 3 months or so.
BUT I realize that may not be enough of a help, and I don’t want you to be cut short on everyday needs. I have many clients who may pay $50 or $100 per month. Even if it seems like it takes a long time to get the case actually “filed,” there’s lots of ways I can deal with your creditors in the meantime.
USE YOUR TAX REFUND
You might not get a tax refund. If you do, I have many clients who “chip-away” at their fees, paying perhaps as little as $50 per month, until their tax refund comes in. Then, they pay the fees, and the case gets filed.
BORROW FROM FRIENDS OR FAMILY
Nobody likes to ask. But you might find that someone really understands, and even hopes that you’ll be better able to pay them back once you don’t have all that crushing debt. They also would rather help with the overall solution, than a little bit here and there, not knowing that you are working toward a solution.
You may have other ideas. The key is to know that there is a way.
Be sure to visit my website for more articles and information, or to contact me for yourself or someone you might want to refer to me.
For over 30 years, listening to clients and putting them at ease, while meeting their needs and helping achieve future goals, in Marion County (Ocala, Belleview, Dunnellon…); Lake County (Leesburg, Tavares, Mt. Dora, Lady Lake, Clermont, Fruitland Park…); Citrus County (Crystal River, Inverness, Homosassa, Hernando…); Sumter County (Bushnell, Wildwood, Webster, Lake Panasoffkee…); the Orlando area, and The Villages.