Paying for a Bankruptcy Lawyer
When you’re facing bankruptcy, adding lawyer’s fees to the budget might seem like a stretch. So, what are your options? It really depends on your resources and the type of bankruptcy you’re filing. Here are some of the considerations.
Chapter 7 or Chapter 13?
The type of bankruptcy matters because in Chapter 7 bankruptcy, you discharge your debts, while in Chapter 13 bankruptcy, you pay them back. If you file for Chapter 13 bankruptcy, you may be able to set up a payment plan with your bankruptcy lawyer. With Chapter 7, you may be able to set up a payment plan with your lawyer, but your bankruptcy may not be filed until you pay all the lawyer fees. While you’re making payments, your lawyer may help you deal with your creditors.
Can You Pay With a Credit Card?
Paying with a credit card is problematic. Your lawyer can’t advise you to incur more debt when you’re facing a bankruptcy filing. You could get into trouble for putting services on a credit card, even though you intend to pay it. Your lawyer may not even accept a credit card payment from you, but you may be able to have a friend or relative pay your fee. You will need to disclose who paid your fee when you file the paperwork for your bankruptcy, but this could be an option to get through the bankruptcy.
Do You Have Other Options to Work With an Attorney?
If you know you are filing for Chapter 7, the argument can be made to stop making payments on any debt that is going to get wiped out in the bankruptcy. Use that money to pay your attorney. Don’t stop making payments on your home or car, because you can often keep your property in bankruptcy so you don’t have to completely start over.
You may be able to get assistance from Legal Aid in your state or another legal program. You can file on your own, but a bankruptcy lawyer is a valuable advocate to help you get through the process smoothly with peace of mind. Don’t discount the value of a lawyer when you’re going through bankruptcy.
Filing for bankruptcy is stressful. There are a lot of laws that apply. You can protect your best interests by working with a bankruptcy lawyer such as Marty Martin Bankruptcy Law. Make an appointment to discuss the situation and to find the best options for you.