Paying for things you need is one of life’s little dilemmas. Paying for legal help in Bankruptcy is one of life’s larger dilemmas.
A bankruptcy client’s common refrain is, “how do I pay for a bankruptcy attorney when I can’t pay my bills?”
There are a number of ways to come up with the attorney fee, some are sensible, others are borderline ridiculous. Smashing your 10 year old child’s piggy bank just isn’t worth it in the long run.
One way to pay for a bankruptcy attorney that is often overlooked, and that will allow the case to be filed before the fee is fully paid, is to use a chapter 13 bankruptcy instead of a chapter 7 bankruptcy.
A few attorneys in Arizona will agree to take a small amount upfront and to then build the remainder of the attorney fee into the plan. It gets paid over time via monthly plan payments and it is interest fee.
I like to do this for cooperative clients, because it allows them the ability to get a case analyzed and filed now instead of later.
The upfront attorney fee can be as low as $500.00 depending on the individual facts of the case and the client’s willingness to cooperate. A filing fee must be paid to the Court and a pre petition class must be taken as well prior to filing. The filing fee for a chapter 13 case is $274.00 and the pre petition class is typically $40.00 to $60.00.
If you have steady income, but are low on funds for an attorney, you should consider chapter 13 bankruptcy.