Friend needs help does anyone know the cheapest way to file bankruptcy?
My friend’s credit was horrible destroyed after a divorce and lawyers recommended that he file for bankruptcy. Does anyone know if there are any programs that help you file or options that are less costly than the 1500.00 that lawyers want. He is in a bad situation and does not have the money to file.
Posted February 26th, 2010 in Bankruptcy Q And A. Tagged: bad situation, bankruptcy, divorce, lawyers, money.
You can hear it almost every week, the swipe of a credit card from every convenient store, a mall or a car store. This is a fact that almost everyone has at least one credit card. It is no wonder why some people find themselves in deep debt and are thinking to file bankruptcy. When you file for bankruptcy it means you have no means to repay your debt, you have little to no money at all, so how possible can you file bankruptcy for cheap amount? The answer is, it is so possible. All you need is a few smart tricks up your sleeves.
You can file bankruptcy for cheap money and even probably file bankruptcy for free. It is theoretically possible to file bankruptcy for free, but the chance of that happening in reality is very slim. In order to file bankruptcy for cheap price, you must find a cheap lawyer or a bankruptcy petition preparer. This does not mean unqualified people. They can help you with the paperwork, what documents you need to prepare and how to file the bankruptcy petition forms.
http://bankruptcy-info.we.bs/
Another thing you need to know how to file bankruptcy for cheap price is to learn about bankruptcy laws. You do not need to be an expert of bankruptcy. All you need are to know the basic in the bankruptcy laws, procedures, regulations and qualifications. This may sound a lot of work but it is not, doing this may actually save you more money and time.
Know what type of bankruptcy you will file. Is it chapter 7 or chapter 13? When you come to a conclusion on which type is best for you then you can go to a bankruptcy lawyer or petition preparer and advice you what is the best route to take. Chapter 7 is a liquidation type of bankruptcy. All your properties will be liquidated, with or without your consent except for some properties that you can keep stated under the law. Liquidated properties are sold and the money gain will be distributed to the debtor’s creditors. The second type of bankruptcy is the chapter 13 type, which is a repayment plan design for a debtor to maintain a sustainable amount to repay debts for a reasonable amount of time. The repayment plan is agreed upon by all parties and the debtor should qualify to have an income that has a sufficient disposable amount to pay debts.
There are many ways you can think of to file bankruptcy for cheap amount of money. You just need to be smart. You can do the expensive way which is to hire a lawyer or you can hire a bankruptcy petition preparer who can prepare the work for you just like the lawyer does and you just pay a minimal flat fee. This way you can save more money and make it easy for you to file for your bankruptcy. For more information on how to file bankruptcy the cheap way by you, just visit the link below.
http://www.loan-house.info/2009/09/choosing-right-bankruptcy-attorney.html
February 26th, 2010 at 2:43 amTell him to call around until he finds a lawyer who will take payments. If he can come up with $500, there are attorneys who will accept that as a down payment. And he can always file the forms himself (not recommended…most people need an attorney to guide them through the process).
February 26th, 2010 at 2:43 amFile it yourself under ‘B’
February 26th, 2010 at 2:43 amDon’t go cheapest!!!!!! Repeat, don’t go cheapest!! You’ll regret it. Make sure to hire a lawyer who is competent enough to present your case thoroughly and accurately. If they screw it up, there’s alot more at stake than just the fees you paid him/her
February 26th, 2010 at 2:43 amThe attorney I used required a "retainer" of $300.00 For that fee I was allowed to tell my bill collectors to no longer contact me, but instead to direct their concerns to my attorney’s office.
Before he would actually file the bankruptcy I had to pay another $1,200.00 because he needed a total of $1,500 to file the case. He did not actually collect the information and send the notices of intent to file until I paid the extra $1,200.
The filing came only a couple of weeks after I paid the balance. Then the remaining fee for handling the bankruptcy was included in the Chapter 13 repayment plan. I think it was another $2,500 but since it was worked into the repayment plan it wasn’t a concern of mine—I didn’t have to come up with the money out of pocket.
If your friend is lucky and qualifies for a Chapter 7 (which just gets rid of all unsecured debt and you don’t make any payments for the next 5 years like I have to do), then I don’t know how they work the attorney’s fees. I imagine they all have to be paid up front before the case is filed with the bankruptcy court.
The first consultation with a bankruptcy attorney is always FREE. Have your friend set up a free consultation so he can see what his best options are under the bankruptcy law.
If he is destitute–i.e. has practically no income and no net worth, there are free legal services available in most areas.
February 26th, 2010 at 2:43 amYou can try to apply yourself. There are people at the bankruptcy court who will help you. However, something like 80% of all people who try to represent themselves in bankruptcy court end up having the case dismissed.
February 26th, 2010 at 2:43 am