Filing Costs
The main reason that people wait for years to file for bankruptcy is that it costs money. If they had the money, they often wouldn’t be in the situation they are in. A tax refund can help them finally afford the attorney fees and filing costs of filing. While you can file for bankruptcy without an attorney, people have received more success with one. The debt forgiveness of Chapter 7 is especially difficult to achieve on your own.
Fraud Artists
There are many people looking to make a few dollars off of people looking for a cheaper alternative for financial freedom. These scams often use loopholes in the system to operate yet offer their clients little if any debt relief. Worse are the petition preparers who flout bankruptcy law and may even cost the client the opportunity for a bankruptcy approval. Failure to properly file the paperwork can result in a denial and waiting years to file again.
Payment Workarounds
There are a few ways to work around the costs of using a legitimate bankruptcy attorney. Some Chapter 13 filers may be able to include their attorney fees as part of their payment restructuring plan. This takes the pressure off the filer of coming up with the money upfront allowing them to pay it over three to five years. Low-income people often would receive the most benefit from a Chapter 7 filing. Unfortunately, without a law change, few attorneys are likely to stop requiring upfront payment.
Attorneys such as Brent George Law can help you file for bankruptcy. When approved, bankruptcy can help you improve your financial situation. Successful filers have often used an attorney.