Does anybody know if there are any sources for bankruptcy assistance that are low-cost or no-cost?
Due to the economy tanking, at about the same time my wife and I were sucked into a major child custody case that sucked up tons of our time and money, our reserves are shot and we are spiraling into an economic black hole. After about a year of doing everything I could to placate everybody making demands of me, I was hit with wage garnishments- taking a full 25% of my net income. We were on a shoestring already, and that stopped all available cash for payments to other creditors, who then didn’t like the idea that I just DIDN’T have the cash to pay them, or even make payments (in any amount!) who then jumped on the garnishment bandwagon.
I have spoken to a local attorney, who claims that we are a textbook case for somebody who actually NEEDS to file bankruptcy- but the only problem is we have no cash available to pay the fees he requires (approximately $1500). I’m seriously considering filing on my own, but I would like to ensure that I’ve covered every other possible angle first, as I understand the possible penalty for screwing up the filing could destroy my chances of ever successfully completing the process.
Any help/links/info would be greatly appreciated!
You should be able to find another attorney that will let you pay installments, check around. If you wind up filing Chapter 13, the attorney fees can be paid as part of the plan itself. You would only need to pay a small amount up front to get the process started.
I would not recommend filing yourself.
There are two components to this: one is attorney fees, and any bankruptcy attorney who’s any good knows that if you had that kind of cash on hand you wouldn’t be sitting in his office. Helping you figure out how to pay him is part of the service he’s providing. If he doesn’t have a payment plan or offer some other solution to suggest, I’d check elsewhere.
The other component of bankruptcy is the filing fees, which are currently $299 for chapter 7. You can apply for a waiver for this fee, and your attorney can help with that.
Bankruptcy is a tricky thing, and while legal aid groups can point you to the paperwork, they’re likely to avoid actually advising you pro bono because the cases can be so complicated. The bankruptcy process can help you get your head above water and get back on your feet, but a botched bankruptcy can make things worse. I’m sure it seems impossible now, but find a way to make sure it gets done well.
Here’s an MSN article that might be helpful, titled “Too broke even to declare bankruptcy”