There are many situations in life that a leave us in financial ruin: a divorce, the loss of a job, an unexpected illness or injury, or perhaps even a combination of all three at the same time. Lucky, lawmakers a long time ago realized that these unexpected events can happen to anyone at anytime and without the safety net of a huge savings or family members or friends to help out, financial troubles seem insurmountable. Luckily bankruptcy offers individuals to lay everything on the table for creditors and gives them the chance to hit the restart button on their finances and credit record. In some situations thought, life’s curve-balls don’t even leave enough in the bank to start the bankruptcy proceedings. If this has happened to you and you think you can’t afford to file, then this article is pointed towards informing you of the other options available.
What are the Options?
In certain situations where you own very little real property and have income such as social security or pension payouts that are legally protected and your other belongings add up to less than $2,000, you may be judgment-proof. This means that you don’t need to file bankruptcy and you can send a letter telling your creditors not to contact you. The only time you would not want to do this, is if you see your situation improving within the next 10 years or less.
Discounted or Pro-bono legal help
If you fall below the poverty line in many states, you can qualify for free help from your local bar association or legal-aid society.
Wave the Chapter 7 fees
In other circumstances you may be able to file a petition with the court to reduce or eliminate your Chapter 7 filing fee.
Finally, the best possible advice for any who has any amount of income through a job is to stop paying anyone and take your next paycheck directly to a bankruptcy attorney. I know this seems counter-intuitive, but once your bankruptcy petition is filed, creditors must halt all: wage garnishments, foreclosure or repossession proceedings, and collection attempts. Because of the legal and financial ramifications, the most worthwhile fee you pay for bankruptcy is your attorney’s fee.