Legal Helpers asked:


When a client and their attorney file for bankruptcy it is not automatically presumed that everything listed on the petition is the exact truth. Attorneys generally will not file any claims knowing they are not accurate, but then again, the attorney is relying on the client’s honesty to insure all the appropriate information is available.

In the majority of bankruptcy cases the attorney filing the petition has already gone through the paperwork to determine if any claims being made are inaccurate. Once the case is filed, the trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy to insure all creditors are treated fairly and that any non-exempt assets are sold for the most money, which is then distributed to the creditors in accordance with their claims.

The United States Trustee who is an officer of the Department of Justice appoints trustees. There are no state agencies involved in a bankruptcy proceeding as all matters are handled through the federal bankruptcy courts.

They will also participate in creditor meetings and has the power to discharge of debt if evidence of fraud or ineligibility is found with the creditor. Additionally, any actions required by new bankruptcy laws concerning money management and budget planning will also be reviewed by the trustee to insure the client is meeting all requirements. Typically, bankruptcy attorneys work with the same trustees on numerous cases and know how the paperwork needs to be filed to meet specific trustees’ concerns. Any concerns with how the trustee handles a case should be left up to the attorney to get answered.

The trustee’s role in bankruptcy differs with the type of bankruptcy filed. Whether Chapter 7, Chapter 13 or a Chapter 11 for businesses, his roles to determine the true value of any assets claimed and to protect the creditors from fraudulent claims, insuring they get a fair value of any assets. While a Chapter 13 trustee’s role is more of an overseer, they stay close to the case, representing clients to insure payments are received and distributed according to the court’s plan.

Trustees for Chapter 7 filings generally serve a one-year term while those working with Chapter 13 filings may be standing trustees serving a geographic area or a court region. Some clients may have confusion over the role of a bankruptcy trustee and believe they are more interested in helping creditors than insuring the client receives a fair chance. The In most Chapter 7 bankruptcies there are few assets involved, however if there are it is the trustee’s responsibilities include liquidating the assets and distributing the money.

With a Chapter 13 bankruptcy filing, the trustee’s job is more administrative as there will be no assets to liquidate. They will make sure the balances claimed to be owed by the client are true and have approval power over the repayment plan. Most attorneys will not file for Chapter 13 fir a client if they do not have the means of meeting the payment obligations.

The trustee will accept payments from the client and distribute them to the creditors according to the plan approved by the court.

Malik Ahmad Attorney at law asked:


Get Education on Your Rights -Read and Know Before You Do Anything.

Hire a Qualified and Licensed Attorney for Your Loan Modification

The last 5 years is nothing but violations of all kinds of laws including TILA, RESPA and HOEPA by all kinds of lenders including the big lenders. My bad list of lenders include Countrywide, WAMU, and of course Citi. City has already eaten up 40 billion of federal money, and is still teetering on the brinks of a disaster. They are also at the same most arrogant and unhelpful lenders. Most of the foreclosure mess is created by these bankers, including of course many small bankers. They over qualified people who could not handle the burden of loan. These folks should not have been home buyers in the first place. The example, I give quite often is of my son is 10 years old and is in 5th grade. I give him one dollar every day for his allowance. Imagine if I start giving him instead $100 every day for his pocket allowance. It would spoil him in less than one month and show him how to be financially irresponsible. It is another thing if I open a saving account and put $100 in his account every day. Of course that would be a fantastic idea for his college education and bright future.

There is No More Waiting Required— You Waited Long Enough.

The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.

Who Else But a Qualified Attorney?

Your lenders policies have hurt you too much. Your broker (former) and loan officer along with mortgage bankers and all the other allied people have hurt you much. IN fact, this foreclosure fiasco was caused originally by combination of all these folks and their unlimited greed. Don’t let them continue this game. We all are hurt by this collective deceptive practice. So let us work together and stop it.

Don’t file for bankruptcy, unless you really have to.

Filing bankruptcy is not a solution; at the most it would delay the process. In some cases, it would jeopardize your loan modification process. Remember Automatic Stay under bankruptcy and then affirmation of debts. They are time consuming things. You lose the leverage and deterrence of bankruptcy to use in your loan modification. I never file bankruptcy before loan modification. In fact, in my law office, I keep them separate and never unify them. Because of the knowledge of bankruptcy, foreclosure, and loan modification: an attorney can be uniquely qualified to cover all these areas and knowledge of all these areas, would be very helpful. Just don’t file bankruptcy at the very outset. It may give some time but it is not the solution. Also, please don’t file bankruptcy just for your home loan unless you have lots of unsecured debts

Do Have Any Alternative Plan.

Why Do Lenders Prefer Loan Mod Over Foreclosure?

-Loan Modification is a temporary help. Get qualified for this. There is nothing to be embarrassing in all this issue. Lots of these things had happened out of our control.

-Your lenders are still difficult to work with; they have built fireballs around which you have to cross.  The secret is that by doing loan modification they are helping themselves. On a cost benefit analysis, they lose more money in a foreclosure. It saves money, and this is a time tested factor that lenders save money on loan modification and lose money in foreclosure.

Let us analyze the situation here in greater details.

Loan modification is cheaper. They deal with one borrower only and not a plethora of people like default agency, governmental agencies, and the auctioneer and furthermore a new person in the entity who is stills an unknown commodity. A loan modification takes place in 30 or 60 days while the foreclosure process is long and it has its statutory limitations. The paperwork is less in loan modification compared with foreclosure process. In foreclosure, your lender will assess all kinds of late payments, expenses and attorney fees, and of course a repair for the home to make it at least presentable. All these add up in the cost to lender. Your lender is tired of foreclosing home. They have a high list of REO properties, and no one is buying them. A loan modification process can slow down your foreclosure process but it is not a safe guarantee against the foreclosure. However, as long as borrower is talking, communicating with their lenders, they would not or at least hesitate to send their home to the auction block. Ideally speaking, don’t sit and wait for this time to come. Do something now. It is the time. It is your home. Find someone who is professionally qualified to help you. It is your local attorney who has a local office, easy to find and communicate and licensed in the State of Nevada.

1. Put everything on paper. It’s not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don’t have to let go of the originals.

2. Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it won’t hurt to make your own as well. If your lender insists on using their worksheet, at least you’ll have all the information ready.

3. Be as detailed as possible. Too much information is better than too little, and it limits the chances that they’ll call you for more information. A typical worksheet for a mortgage home work modification will include the following:

-Your contact information (address, home phone and work phone, fax and email) -Information about your property, including the estimated value -Your current income -Any additional income, such as welfare, child support, etc. -Your estimated total value, including other assets such as real estate, savings and checking accounts, IRAs, 401(k), stocks and bonds.

-Liabilities, such as existing loans monthly bills, medical expenses, and tax liens

4. Keep all your bills. Keep track of all of your bills in a methodical order. Make sure you write down your grocery bill, your utilities, including water, power, gas, and trash charges. Now, add on your monthly bill of HOA, any other community charges, your insurance charges, your child support, and other alimony issues or legal expenses. Possibly, a positive cash statements would be an ideal one to work with banks.

 

Wade Robins asked:


Many people ask me whether there is actually an alternative to bankruptcy. Well actually it might surprise you, but the answe is yes! There are many substitutes for bankruptcy and not all of these are suitable for everybody, it is necessairy to look at each method in detail before making a decision. This will allow the debtor to find out which method will best suit them. Some of the bankruptcy substitutes may put the debtor in a more dangerous position, while others might just prolong the agony. There are a few solutions to this and we’ll take a look below.

Debt Settlement

Many debtors use debt settlement and then ultimatly end up filing for insolvency. In some situations this is a reasonable substitute for bancruptcy, however many studies have shown that many of the people using this method will still end up filing for bancriptcy eventually.

There are some hidden things about debt settlements that very few people are aware about. The IRS (Internal Revenue Service) can actually tax the amount of the debt settlment as this is seen as a form of income. By law every creditor is obliged to report this debt reduction figure to the IRS. The lender will send you a form known as a 1099, you must complete this and include it with your personal taxes. If say you settle with a lender to reduce your debts by $1000 then the IRS sees this $1000 as a form of income, they will therefore use this as part of your taxable income. For more info see http://www.filingpersonalbankruptcyhelp.com/Bankruptcy_Attorney/ on Bankruptcy Attorney

Consolidate your debts

This is the most popular alternative to filing for bancruptcy, this is basically another loan that pays off all of your other loans. There could also be hidden factors at work when taking out a consolodation loan. You must be careful when choosing a consolodation loan, some of them are very hard to get your head around. You must make sure that this new loan is actually cheaper than what you are paying at the moment.

Normally these consolodation loans work by spreading the same amount of money out over a longer period of time. This makes it look as though you pay less money each month, which fair enough you do. But you will pay back much more interest in the long run than you would of to your original lender. Also many debt consolodation loans require a final baloon payment at the end. This is very inconvenient as the debter will have to find a large sum of money all in one go, it could well be that the lender will have to take out another loan to finance this baloon payment.

Jeff Swaney asked:


The following are types of debt collector conduct which may violate the FDCPA.

• Debt collectors failing to identify themselves (only company name), or failing to state that collector is confirming or correcting locating information

• Debt collectors disclosing to third parties that debts are owed

• Contacting any person more than once, unless requested to do so by the third party

• Contacting any person after knowing you are represented by an attorney

• Calling you before 8:00am and after 9:00pm, your time

• Contacting you after you are represented by an attorney (i.e. your Bankruptcy attorney)

• Calling place of employment after debt collector knows employer prohibits calls (after you say, do not call me at work”)

• Contacting you, after you, in writing, tell debt collector you are not going to pay debt, or you want collector to cease communication Harassment or Abuse

• Debt collectors harass, oppress, or abuse any person

• Threat of Force or criminal means to harm you or your property

• Using profane language

• Calling repeatedly

• Calling you without disclosing identity (“I am a debt collector attempting to collect a debt”)

• False or Misleading Representations in Communication

• Attempting to collect more than is owed

• Implying debt collector is an attorney when it is not.

• Threatening that the nonpayment will result in imprisonment, garnishment, and attachment.

• Threatening to sue you when they are not an attorney.

• Threatening to take any action debt collector doesn’t intend to take or otherwise lying.

If you have any questions about debt collector conduct which may violate the FDCPA, it is best to contact a Bankruptcy Attorney in your state.

 

The contents of this article are intended for educational use only in order to provide readers general information and a basic understanding of the law. If you are seeking legal advice, please consult a licensed professional attorney in your state. The information in this article should not be substituted for experienced legal advice.

Legal Helpers asked:


In bankruptcy, the attorney assigned to the case is responsible for making sure all information provided by their client is accurate. They usually do this before filing any and all paperwork. However, they often miss something and simply take their client’s word for the truth. Once the case is filed, a bankruptcy trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy is to protect creditors are treated fairly and to be sure all non-exempt assets are sold for the highest price. The money raised is then distributed to the creditors in accordance with their claims and the trustee in bankruptcy helps make this happen. They go to creditor meetings and can discharge debt if fraud is found on the creditor’s end.

With a Chapter 13 bankruptcy filing things are different. The trustee’s job is more administrative. This is because there are no assets to liquidate. They make sure the court approves the new payment plan. The trustee will often accept payments from the client. They then distribute them to the creditors, according to the court approved payment plan.

Many people use bankruptcy because they need to be relieved from the financial burdens that they are unable to take care of now or in the future. Unfortunately, too many people may have taken advantage of the bankruptcy system, and in May of 2004, the Bankruptcy Legislation Amendment Bill was passed. This bill was designed to stop those that were using the bankruptcy system as a quick way out of paying their taxes, although they were financially able to pay them. There may have been very few people that were taking advantage of the ability to not pay their taxes; however, the ones that are taking advantage have had debts that were a considerable amount of money. Since the bill was unfair to those that were in actual financial debt, there was an amendment in December of 2005.

This amendment allowed for those that truly needed to be relieved of their burdens to conduct a means test, which would evaluate them to see if they were in true need of filing bankruptcy. This includes taking a debt counseling course, in which the filer must pay for themselves. If after completing these requirements you were considered unable to file for the Chapter 7 bankruptcy, you still have the option of filing for Chapter 13 bankruptcy. Filing for Chapter 13 is more difficult, but can be a necessity if you are in desperate need of relief. With these new laws in effect, those that need help can still receive it, while those that are using it for avoidance, can no longer do so.

Filing for bankruptcy can be quite frightening. When filing for bankruptcy there are many rules you must follow exactly in order. If you don’t, you won’t correctly file your bankruptcy. In addition, you should completely understand each of the separate types of bankruptcy you can file, before your file. If you’ve had no experience with bankruptcy you may find yourself overwhelmed with the tasks of filling out the right paperwork. If your bankruptcy papers are not filed in the proper manner, you can end up with a bigger problem than you started with.

If you want to ensure you are doing everything the right way, you may want to consult with a bankruptcy attorney. The easiest way to contact a good bankruptcy attorney is to get in touch with a bankruptcy firm. A bankruptcy firm is actually a group that employs lawyers who specialize in the process of bankruptcy.

When you’re dealing with something as sensitive as filing bankruptcy, you want to be sure you’re doing it right. A bankruptcy firm can help you know what type of bankruptcy you qualify for and the proper steps you need to take to complete the process. In addition, the attorney can help prepare you if you need to go to court and can often help you protect some of your most precious assets (like your home and car). Overall, it is a prime idea to contact a bankruptcy firm before filing for bankruptcy.

Kevin Muir asked:


There is a padlock on the delivery gate. Most of the manufactured pre-cast products formerly stored on pallets in the back lot are gone. The building has a huge “For Lease” sign attached to the front. Janelle, the former owner, drives by in a Rent-a-Lemon car. She had registered both her automobile and delivery truck in the name of her business; and, like everything else she had worked for years to build up, they are gone.

How did it all happen? She had run this business successfully for over twenty years. When events turned sour, everything happened at once. First, a powerful and wealthy client sued her for nearly a half-million dollars. Then, other clients, sensing the distress, started using one of her competitors. Her financial problems soon followed. Eventually she couldn’t make payroll, so she decided to file business bankruptcy.

Unfortunately Janelle didn’t do her homework. Instead of seeking out an experienced bankruptcy attorney, she used a small law firm that she knew about through a friend of a friend. Her selection of representation was bargain-basement. She never went to the website of the state bar association. Only later would she discover that her attorney had his license suspended not once, but twice in recent years.

Doing a Reality Check

In this case, Janelle suffered from a sense of invincibility. Clients had threatened lawsuits before and she had successfully handled them through mediation. This time, however, it was different. At the first sign of trouble, she should have done a serious reality check. When everything first started, she just had a troubled business. After she let it linger, it turned into a liquidation business bankruptcy with the loss of the personal property securing her business loans.

Business Bankruptcy: Know What You Are Getting Into

Small business owners across the country turn to business bankruptcy when they get into trouble. Often they discover, only too late, that going to an attorney to file business bankruptcy only makes their situation worse. Janelle made the fatal mistake of using a cheap attorney. When the lawyer looked at her, he did not see a businesswoman in need of sound advice, but an expense paid trip to the Orient.

To make matters worse, this attorney didn’t even specialize in bankruptcy proceedings. Therefore, he couldn’t prepare her for what could happen to her and her business. The incompetence of her bankruptcy lawyer left her with no legal alternative when the bankruptcy trustee decided it was time to liquidate her business.

An honest bankruptcy attorney would have explained the process and given Janelle other options. Why? Business bankruptcy is not usually the best choice for small businesses. Most do not survive and eventually must liquidate their assets. The process is expensive costing anywhere from $50,000 on up. Your company must have at least that much in the bank to emerge successfully.

As with any other large investment, Janelle should have shopped around for an attorney. If she decided that bankruptcy was right for her business, she should have interviewed several lawyers. A bankruptcy can take up to five years to complete. This means you should plan to have a long-term relationship with your bankruptcy attorney. Make sure you trust this person and have good communication with him or her.

Janelle’s is a classic case of doing too little, too late. Her story didn’t have to end this way. When your business gets into trouble, make sure you explore all your options. Find out what it takes to turnaround your business or simply shut the doors before deciding that business bankruptcy is right for you. While filing Chapter 11 can save some businesses, going into the process unprepared and with the wrong lawyer can destroy it.

Lynn Vest asked:


Do you own a home? Are you considering filing for bankruptcy? You need to take steps to protect your home if you want to keep it. First off, you can keep your home if you file a chapter 13 and have enough income to cover the monthly payment for three to five years until your debts are paid. For instance, if you owe two or three months of mortgage payments and say you owe two years back property taxes, you can save your house by filing a chapter 13.

You will need to have enough income to pay your monthly living expenses and enough leftover to pay the monthly bankruptcy payment. If you are filing a bankruptcy chapter 7, you need to be current on your mortgage payments and have very little equity in the home. The mortgage company holds the title to the home and the courts cannot make the sale to pay debts. You can save your house before filing for a chapter 7, by paying on time payments and keeping up with your property taxes before anything else. If you owe back payments on the house, you might lose the home if the mortgage company cannot agree on a payment.

If you have a large amount of unsecured debt and just a car loan or house payment, you could save your home during a chapter 13. You will need to keep up your monthly payments, insurance and property taxes to satisfy the mortgage company and the courts. Before you take the step to saving your home, make sure you will have enough income to pay the monthly expenses and the monthly payments to the trustee. It is very important that you do not send your monthly trustee payments in late. If you have late payments, you could void the agreement made to the creditors and the court.

Saving your home during a bankruptcy is up to you. If you make an agreement with the creditors and the court, you need to continue keeping that agreement for the time of the bankruptcy repayment plan. It is important that you not default on any payments. Keeping your home during a bankruptcy is not as hard as some people think. It is better to talk with a bankruptcy attorney before things get out of hand. You can get help and take the steps to save your home before filing for bankruptcy.

After talking with a lawyer and paying your down payment, you should not discuss any details with the mortgage company. Your lawyer will take care of all the communications so that there are no misunderstandings. Your lawyer and the trustee will work with you and the creditors to set up the payment plans and you should not receive any calls from the mortgage company after that unless you are late with your mortgage payment again. Since you have more than likely dealt with the mortgage company trying to resolve the problem before looking into a chapter 13, you know they can be a little unreasonable.

 

Legal Helpers asked:


For those in debt that surpasses their ability to pay, bankruptcy can be a solution to regain financial freedom. Debts can be discharged through the filing of bankruptcy. Under a specific chapter of the bankruptcy code most debts can be absolved while a filer is still able to keep some personal property. There are federal and state exemptions for homestead, jewelry, life insurance policies and more. For a full listing of this contact your bankruptcy attorney. Consumer bankruptcy or personal bankruptcy is the most commonly filed. Chapter 7 and Chapter 13 are often filed in consumer bankruptcy. The whole purpose for bankruptcy is to allow debtors to be given a clean slate to build a positive financial history on.

You can begin your bankruptcy process by filing a petition, which is a document that includes a debtor’s financial information. Depending on your situation you will either choose or have a specific chapter of bankruptcy suggested for your debt relief benefit. A creditor can also file a bankruptcy petition on your behalf. This petition is filed with the U.S bankruptcy court clerk. A debtor has 20 days to file objections. If objections are filed, the case can go to trial. If there are no objections filed the bankruptcy will proceed. Involuntary bankruptcy can only be filed under two chapters, which are chapter 7 and chapter 13 of the bankruptcy code.

You are susceptible to being a part of an involuntary bankruptcy if you are not paying your debts period. If you are missing significant payments or you are regularly missing sizable payments you can be subject to involuntary bankruptcy. The court enters an order of relief and the creditors expenses and attorney fees are dispensed immediately. Creditors who are not hasty in being paid at least a portion of their owed debt will choose to file involuntary bankruptcy. Some creditors will use this as only a last resort as if the judge was to view the charges as unjust the creditors themselves could obtain fees and charges. For additional information on this area of bankruptcy or others you can simply search bankruptcy or bankruptcy petition online. You can also speak to a bankruptcy attorney for a free consultation for your bankruptcy questions.

It is understood that due to job loss, terminal illness and death of a spouse can throw people into severe debt. The most common cause for bankruptcy is still in fact largely due to credit card debt. It is key to speak with a bankruptcy attorney for a free consultation. You can do this online or by contacting a local attorney out of the phone book. An experienced attorney can steer you in the right direction when making the choice to file bankruptcy. In general chapter 7 converts your non-exempt assets into cash to pay off outstanding bills. Chapter 13 is a form of financial reorganization. With chapter 13 you are given time to pay off your bills, stopping foreclosures and maintaining the majority of your property. Bankruptcy can provide financial freedom but should be used as a last resort as opposed to paying bills off through debt consolidation practices.

Jon Arnold asked:


Like almost anything else, there is a right way and a wrong way to file bankruptcy, just as there is a good reason and a bad reason to file bankruptcy. Your success with your filing will depend heavily on what caused you to get into the position of thinking you need to file for bankruptcy, as well as the status of your personal assets.

The most common reasons for filing for bankruptcy are unemployment, huge unexpected medical expenses, marital problems, or largely overextended credit card bills. But filing for bankruptcy may not be the easy way out that many people think it is, and as it actually may have been a few short years ago when the bankruptcy laws were easier and more sympathetic to a person’s circumstances. But the laws today are tougher, and it is very difficult to successfully file bankruptcy without a good case and good reasons to back it up. Also, many people do not consider bankruptcy alternatives, where you need to realize that bankruptcy should be your LAST consideration, not your first one.

First you need to consider your current situation. If you are unemployed, living on welfare or some sort of public assistance program, you have little or no money in any bank accounts, you do not own a car or truck, and/or you rent your home or are living with others, there is very little that bankruptcy can do to resolve or improve your financial situation.

If however you feel that filing bankruptcy is your only option, and I hope you have thoroughly explored all of your options and alternatives before reaching that conclusion, you should definitely discuss this with a good bankruptcy lawyer or bankruptcy attorney. In many cases, your first consultation will be at minimal or even no charge, and the lawyer can advise you as to what course to pursue, or if bankruptcy declaration is going to help, or perhaps make matters very much worse overall. There is a form at my web site which is free and can put you in touch with a local bankruptcy attorney who can look at your unique situation and would be aware and well versed in how bankruptcies are handled in your state and your particular part of the country.

A bankruptcy lawyer can help you determine factors like if it can be proven or demonstrated that you have abused your credit privileges, then you may even be disqualified from filing for bankruptcy. This is known as a “means test”. Of course, there are always unique factors which got you to this situation, such as divorce, medical bills, unexpected and unavoidable large expenses, etc, all of which can play a factor as to whether you can file bankruptcy, and if you can, if it will help you at all.

For most people, the biggest disadvantage to filing personal bankruptcy is the fact that the bankruptcy will appear on your credit report for six years or more after you are discharged from bankruptcy. This is a huge red flag on your credit report, and obtaining new credit after filing for bankruptcy is going to be difficult if not impossible from most traditional lenders and credit card issuers.

With bankruptcy, like anything else, going about it the right way and knowing what you are getting into is the best way to approach it so that you do not end up doing more damage than the situation you are already in.

Jay S. Fleischman, Esq. asked:


The cost of bankruptcy is one of the most immediate concerns for people who are considering it – after all, how can you pay to have an attorney handle a bankruptcy filing when you don’t have the money to pay your bills? Since collectors have probably been hounding you for months and getting every penny they can out of you, it’s understandable that the cost of bankruptcy would be a major worry.

There are a number of factors that determine what you will pay in attorney’s fees for filing bankruptcy – the prevailing rates and number of bankruptcy attorneys in your area, the complexity of your situation, and the type of bankruptcy you will be filing. Also, some attorneys charge a flat fee, while others quote fees on a case by case basis.

While cost is certainly a major concern for you right now, it’s not always the best idea to just hire the cheapest bankruptcy attorney you can find. ”You get what you pay for” is a maxim that certainly applies here. If you run into unforeseen complications with your filing, you want to be sure that your attorney will have the experience and expertise to keep things on track. A seasoned attorney probably won’t be the cheapest around, but he or she will be there to answer questions, deal with complications, and make sure that you end up free and clear of your debt.

Some attorneys allow clients to pay their fees in  installments – if you can’t come up with the entire fee, this might be a good way to get the bankruptcy process started. Just keep in mind that paying in installments might delay your filing. Some states also have programs that provide volunteer attorneys to handle your bankruptcy case at no cost.

Once you choose an attorney, make sure you get a statement of your fees in writing – this way, you will know the exact cost of your bankruptcy filing.

For many people, the cost of bankruptcy seems like a huge obstacle. However, if a creditor offered to wipe out all your debt for just a few hundred dollars, you’d likely jump on the chance. Essentially, bankruptcy offers the same opportunity.