Where did you get $ for your lawyer & filing fees?

[heygirlhey]

Hi. I'm new. Freaking out and embarrassed as to be expected. I'm thinking Chapter 7 might be my best bet. But I want to know where did you get the money to pay your lawyer and filing fees? Did you borrow money? Did you save? What about if you've already stopped paying your CC?

I searched through the forums for an hour+, and found only one similar post. The advice in that post was to seek a pro bono lawyer, but I looked on that website and Oklahoma wasn't on the list. In an article linked, there was mention of rolling the lawyer fees into the BK. What's the criteria for that?

I had a consultation for more information in April, but the lawyer and I decided that at 11k I didn't have enough debt. I felt relieved. Last week, I got a letter from a law office debt collector for two loans that I thought were private student loans (made payments through AES), but I guess they're considered personal loans since the debt was sold to a law office debt collector. [Note: Please correct me if I am wrong about this; I'm still learning.] Now, the debt is 25k because of those loans. I started a part-time job in June making about $850; live at home with my mom; and pay my car note, car insurance, fuel, cell phone bill, food/personal care.

I'm worried about getting sued or garnished. I haven't paid on any of my debt since July 2009.

For people who were or are in a similar situation, where did you get the money and how did you get it? Any advice would help!

[avmarathe3]

Are you employed and what is your income? What are your living expenses without the CC bills? Do you have any disposable income after your living expenses? The answers to these questions will help you make the decision. You do not require an attorney, you can file yourself- PRO SE. You may request exemption on fees if you are indigent. I hpoe this helps.

[Flamingo]

If you are not paying any bills at all and have no money, not paying rent (living with mom) and just started work in June making $850 a month, note that bankruptcy will not solve any of your cash flow or lack of a full time job situation to survive. Since you are basically making near poverty wages and your debt has increased to $25,000 with all the interest and penalties, get some more free consultations, fully explain your situation and see what you are advised. You may have to save the funds out of your wages somehow for your filing fee or stop paying on your car and use those funds. Since your mother is already helping you, it may be possible she could lend you the fee - get some consultations and ask. But remember, BK does not solve cash flow or lack of employment issues. You will still be in the same financial position you are now if/when discharged and will have a BK on your credit reports for 10 years if it is a Chapter 7. Best of luck to you.

[sah2]

I borrowed it from my mother.

[wonderingrov]

I used my tax refund to pay the attorney's fee. If you are anticipating a tax refund next year, and can wait that long, that may be an option.

The only other option in a situation like this that I can think of is borrowing from relatives (or possibly friends) as others have suggested.

[contest]

I begged my employer to cash out vacation time.

[heygirlhey]

Thanks, all! I appreciate the honesty. I do understand that my underlying issue is a cashflow problem, partially the reason I'm 25k in debt. In 2008, I was using cards to supplement my income--groceries, gas--when I couldn't make the bills, which of course lead to higher minimum payments. Y'all know the deal. So yes, I need better work to make my fresh start a true fresh start. The crazy thing is, is that I have a Masters and having difficulties finding full-time work! Crazy! I thought as soon as I graduated, someone would snatch me up for a glamorous job in fashion. Not that I'd be working part-time as a customer service rep at a call center.

My mom makes works retail, making about $25-28k a year. So, no borrowing there. She's gracious to let me stay with her and use up half her living space and all of her toilet tissue, lol! I was also hoping to keep my car because I need it, as my job is about 35 miles away and in Oklahoma, there is virtually no public transportation. I was also hoping to keep my car to help rebuild my credit after BK. Is that possible?

How proficient do you have to be to file PRO SE? What books do you recommend? I was thinking about picking up a NOLO book. I have a friend that is a lawyer, but she took the bar in a neighboring state, not in Oklahoma. Would she be able to help with filing PRO SE?

Again, thanks everyone. I joined early today and I've already learned so much.

[sepiid]

we got our lawyer and filing fees by stopping payments no CC and a car.

[CCsAreEvil]

I was fortunate to have parents pay for it. They are so kind. And, yes, even the cost of toilet paper (no joke) is part of the budget. We are a family of 6 and yes, toilet paper expenses start to add up quickly.

[frogger]

If you are not paying any bills at all and have no money, not paying rent (living with mom) and just started work in June making $850 a month, note that bankruptcy will not solve any of your cash flow or lack of a full time job situation to survive. Since you are basically making near poverty wages and your debt has increased to $25,000 with all the interest and penalties, get some more free consultations, fully explain your situation and see what you are advised. You may have to save the funds out of your wages somehow for your filing fee or stop paying on your car and use those funds. Since your mother is already helping you, it may be possible she could lend you the fee - get some consultations and ask. But remember, BK does not solve cash flow or lack of employment issues. You will still be in the same financial position you are now if/when discharged and will have a BK on your credit reports for 10 years if it is a Chapter 7. Best of luck to you.

Excellent advice!

[avmarathe3]

Pro Se is not difficult. The required information is filled on pre printed forms which are self explainatory. You will require to read them carefully and answer the questions and /or fill the data honestly. Consider this as a research project and give it all the attention it will require. If you have questions, this forum will be helpfull. Try this, if you are not satisfied, have a free session with the attorney to review your findings and then determine if Pro Se is for you. Nothing to loose!! you will certainly gain knowledge about BK. Good Luck.

[heygirlhey]

Thanks, everyone. This was extremely helpful. I guess all that time spent in grad school won't go to waste. I'm going to start the research process when I get home from work today. Everyone's input was great!

[keepmine]

You need to find out exactly what sort of loans those educational loans are. It's not unusual for tudent loans to be farmed out to 3rd party collectors.
Not to rain on your parade but, they may not be dischargeable.

http://doney.net/bkcode/11usc0523.htm

8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for--

(A)

(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or

(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or

(B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;

[BCA2009]

Most people will advise against it, but I got my attorney fees out of my IRA. I had to file immediately and couldn't wait to save up.

[tcreegan]

Hello heygirlhey,

Be careful around the student loans. Student loans are NOT discharged in Chap. 7. Not gonna happen.
Your loans were probably not sold to the collector, the student loan originator probably just offered to let them try to collect.

Funds for filing usually come from stopping payment on debt. In your case it would be the car. You can usually stop for a couple months before the finance company gets serious about repossession.

My case was more complicated than yours and I filed pro se. I read the federal bankruptcy law and the local bankruptcy rules, researched a lot in this forum.

Best of luck to you,

Tom in Colo