If you have struggled with the downturn in the economy, you may be facing a financial crisis. This may mean that you are struggling to pay your bills and are looking to reorganize your debt. If you are facing bankruptcy, in addition to figuring out how to deal with your current bills, you want to keep in mind the future bills you will face by way of bankruptcy attorney fees. Unfortunately, the way the legal system is set up, you probably will not be able to file for reorganization without a lawyer, so that means you’ll have to pay for your legal representation during this difficult time. If you take some steps prior to hiring a lawyer, you may be able to avoid making your financial situation even more precarious.
First off, don’t be afraid to stop paying your revolving credit card bills. Chances are these are the accounts you will be voiding, so your standing with them will be a moot point sooner or later. If you take that money and set it aside, you may have all that you need to pay your lawyers, plus a track record of being unable to pay your bills. It is unfortunate that people struggling to get by are generally forced to pay back all they owe, whereas people who are not paying their bills are allowed to have their debts waived. Creditors will not bargain with those consumers who are paying them back, but your bankruptcy lawyer as your bankruptcy legal assistant will be able to get your debt reduced or voided if you have a record of non-payment due to insufficient resources.
You can also seek help from the court directly. Depending on your circumstances—for example, you may have suffered an illness, lost your job, and now have outrageous medical bills to pay—the court may give you a waiver from the court costs involved in a bankruptcy. You will still need to pay your bankruptcy attorneys fees, but this will probably be only an hourly rate if the court costs are waived.
Finally, consider cashing in any liquid assets you have or selling items that could be of value. So long as they will not be included in the bankruptcy agreement, you can sell any items that may help you pay your bills.
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