It costs a substantial amount of money to file a bankruptcy. When you don’t have money for utilities and rent, this feels like a cruel joke. And while most clients address it with a sense of humor, the fact is one of the biggest hurdles to getting out of debt is raising the money to pay the bankruptcy lawyer.
What You Shouldn’t Do
You shouldn’t use your credit card(s) to pay for bankruptcy. If you charge a credit card for more than $600 within 90 days of filing a bankruptcy, a presumption of abuse arises. Beyond this, any charge placed on a credit card– when you know the charge will be discharged in bankruptcy– is considered fraudulent. Your case may be dismissed!
You shouldn’t borrow from your 401(k). Not if you can help it, anyway. Retirement funds are protected and they represent an investment in your future. If you’re facing a foreclosure or there is no other way to pay for the bankruptcy fees, then you and your attorney can make a decision as to whether it’s a good idea to use retirement funds to pay for the bankruptcy.
What You Should Do
Consult with your attorney. Once your Charlotte bankruptcy attorney gets a feel for your overall financial picture, he or she will be able to help you creatively plan your bankruptcy payment in a way which won’t upset your filing. Together, my clients and I are usually able to figure out a way to get the necessary fees paid without too much discomfort for the client.
One option is to borrow from a family member. While family members may not be too keen on lending money to someone who continues falling behind, they tend to see the filing of a bankruptcy as a responsible choice and they are often eager to contribute to your financial recovery because they feel you have a plan. They’re proud of you for taking necessary steps to improve your situation.
Another option is to consider an upcoming tax refund. If you’re accustomed to receiving a tax refund each year, you can start working with your bankruptcy attorney on the paperwork as tax time approaches, and then instead of using the return to catch up on bills, use it to pay the attorney to help eliminate the debt…forever.
Every post ends the same way: CALL AN ATTORNEY. The reason? A phone call can change everything, and speaking with a bankruptcy attorney helps you to clearly see your options and make a choice. You can change your future, today. Email me HERE or call me at 704.749.7747.