You are feeling overwhelmed by debt, and a Chapter 7 bankruptcy seems like a good option for finding relief. Filing for bankruptcy costs money, though.
How will you pay for it?
Stop paying on your debts
NerdWallet, a company that provides financial education for consumers, explains that you may be able to afford the filing fee if you simply stop paying on your debts. This option comes with a couple of caveats, though. If you are wanting to keep an asset, such as your home, you need to keep making the payments on time. Also, there are some debts—such as student loans, taxes and child support payments—that bankruptcy cannot erase. You must pay these faithfully to keep from getting into legal trouble.
However, the bankruptcy will discharge unsecured debts such as medical bills and credit card debt. You may already be behind on these payments and have concerns that you will get into trouble with the creditors. Once you file, though, you can direct them to your attorney, and you will no longer have to worry about any legal trouble.
One thing you should not do is use your credit card to pay the filing fee. A creditor could rightfully claim that you never intended to pay, and a judge may decide not to discharge that debt.
Utilize legal assistance
Financial experts do not recommend filing your bankruptcy on your own. For one thing, the paperwork can be quite complex. For another, if you do not have an attorney to deal with your creditors, the companies may disregard the automatic stay and continue to contact and harass you.
The right bankruptcy attorney understands the initial obstacles that come with filing for a Chapter 7 bankruptcy, offers a free consultation to explain your options and, ideally, does not charge a down payment. With these benefits, you will not have to worry about adding an expense to your already overloaded budget.