How Can I Afford To Pay Bankruptcy Attorney Fees?

June 17th, 2010 by Reed Allmand

The fear of attorney fees is one of the very real obstacles debtors face when considering bankruptcy.  But millions of debtors have found that they are able to figure out a way to pay attorney fees that will allow them to file bankruptcy and procure all of its benefits.  Below are a few suggestions on how debtors can successfully create strategies that will allow them to pay their bankruptcy attorney:

1. Talk to your bankruptcy attorney about any possible payment plans which might be available to debtors.  Many bankruptcy attorneys offer a free consultation where they will discuss how much their services cost and how those fees can be paid in the most comfortable way possible.
2. Pay your bankruptcy attorney fees in your Chapter 13 bankruptcy repayment plan.  When debtors file Chapter 13 bankruptcy, they are allowed to repay their debts over a 3 to 5 year period; they might also be allowed to include their bankruptcy attorney fees in that repayment plan.
3. If a debtor is considering Chapter 7 bankruptcy, then they might want to decide to stop making payments to unsecured creditors such as credit cards before they file bankruptcy.  By stopping payments to these unsecured creditors the debtor may be able to free up hundreds of dollars per month and use that money to pay their bankruptcy attorney.  Also, if the debtor has savings and tax refunds, it is allowable to use that money to pay their bankruptcy attorney.  However, it is not allowable to charge bankruptcy attorney fees onto a credit card or to take out a payday loan to pay bankruptcy attorney fees.  Remember, once a debtor knows that they are going to file bankruptcy, charging up more debt is not allowed and doing so could jeopardize their bankruptcy case.