How to file if you're broke plus another ?

[Andyman]

How do you file a BK with an attorney if you can't afford to pay the attorney? I'm going to meet with an attorney probably next week. There's no way I could come up with anywhere near a $1000 or even $500 to start things going.

Also, I have no assets really other that my business of which I lease the building. I have inventory and equipment of which I need of course to stay working. If I can't afford an attorney and just stop paying my CC's, what can happen?

Thanks!!

[PoGirl]

If you stop paying your CCs, will you have enough to pay for the attorney? Maybe after a couple of months after not paying the CCs?

The initial consultation is usually free, so definately do that part. We didn't have to pay anything until we did the signing, and then it was only about 15% of the total bill. The rest is included in the BK filing.

I think after you attend the free consultation, you'll feel better about your options.

[santadawg]

I hear you Andy, my BK lawyer wants to be paid in full before he does anything. How the heck can we do that. My family will let me borrow the money, but I don't know if I will have to claim that. How would they know?

[Tbornetun]

The most common way to pay the attorney fees is to go to the free initial consult, decide your plan of action, stop paying your creditors, save that money to pay the attorney. Especially in cases where people are surrendering their homes, when they stop paying the house payment and they can accrue the retainer money fairly quickly.

[epiphany]

It took me nearly seven months to pay the attorney and filing fee in full.

I was fortunate to have found an attorney that would field phone calls from creditors with little money down.

If you stop paying your credit cards, you might (?) be able to afford an attorney, just maybe not all at once.

Be honest with your attorney. Many will work with you. They may not lift a finger until their fee and the filing fee is paid in full, but you can still tell your creditors that you have an attorney and give them the info. This usually brings collection efforts to a grinding halt.

Good luck to you,

ep

[ansky0007]

I would agree that dealing with an attorney would be much easier than trying to do this yourself. I shopped around for a while and met with 5 lawyers before I chose the one I am with. We are set to file in around 60 days and I have not yet paid him in full but I am sending money every week when I have some. He has been very good to us and he is willing to take our calls from our creditors even though we have not paid in full yet.

[JRScott]

Well if you are willing to work hard and do a lot of study, you can file what is called Pro Se. However this does require a lot of work and does add some stress to the process usually. To get you started I would suggest buying the NOLO book on bankruptcy there is a link here on the forums someplace. We have seen many folks file Pro Se here and many have done well, but to do well it requires a lot of work and organization.

Another option would be to check if any of the lawyers in your area are associated with Legal Aide or do Pro Bono work for those that cannot afford to pay the usual fees. This might get you representation at a fraction of what it normally costs.

A consideration also is the Chapter you wish to file. In a Chapter 7 the lawyer has to be paid before filing in full. In a Chapter 13 he just has to be paid a portion before filing and the rest is rolled into the plan.

As others suggest as well it is not uncommon to stop paying the CC and then take several months to make payments to a lawyer, that is also an option.

[santadawg]

Thanks JR--I wish I could file myself, but my wife would think I lost my last marble (which she would absolutly not do). My sister will help but would I have tell the BK Lawyer where it came from.

[Tbornetun]

Your sister would help how? Legal fees?? I don't see a problem with that.

[santadawg]

I was just worried that if she gave me a gift that I would have to report it.

[Tbornetun]

Not if it was paid directly to the attorney and never touched your hands.
Don't deposit in your account, don't touch it. Or have her get a certified check to the attorney. Just an idea. Attorney fees are ALLOWED to be paid. They will not ask for the money back that you paid the attorney to file the bankruptcy.

[santadawg]

that's good to know, thanks

[JRScott]

Yep you do have to list what you paid in relation to the filing such as the fees for the classes and the lawyer on the petition but they don't go back and touch any of those.

[santadawg]

JR-would they ask where the 3000.00 came from that went to the lawyer

[JRScott]

They never asked me how I got the money to pay my lawyer. However the idea given above to have her pay the lawyer directly is not a bad idea, a kinda cover your a__ policy