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Low Cost Bankruptcy

Navigating Low Cost Bankruptcy: A Guide for Struggling Families

Filing for bankruptcy can provide much-needed relief if you are overwhelmed with debt and struggling to make ends meet. However, hiring a bankruptcy lawyer can be expensive, leaving many families wondering if low cost bankruptcy options exist. The good news is that there are ways to file for bankruptcy without breaking the bank. This guide covers strategies and resources to make bankruptcy more affordable.

Understanding Low Cost and Pro Bono Bankruptcy Assistance

Bankruptcy can be a lifeline if you are dealing with foreclosure, aggressive debt collectors, utility shutoffs, and other financial crises. However, attorney fees often range from $1,000 to $3,000 to file a basic Chapter 7 or Chapter 13 bankruptcy case. For low income families already struggling with debt, paying these legal fees may seem impossible.The first step is understanding what low cost assistance options are available:

• Pro Bono Bankruptcy Lawyers: Many bankruptcy attorneys donate a portion of their time to pro bono cases each year. Local bar associations often coordinate these pro bono services. You can inquire with your local bar association to see if you qualify.
• Legal Aid Organizations: Organizations like the Legal Services Corporation provide free bankruptcy help for low income individuals. Consult your state’s legal aid website to find a local bankruptcy legal aid program.
• Law School Bankruptcy Clinics: Many law schools operate bankruptcy clinics where law students provide pro bono assistance under attorney supervision. Contact nearby law schools to see if they offer this program.
• Chapter 7 Fee Waivers: It is possible to request a waiver for the $338 Chapter 7 bankruptcy court filing fee if you truly cannot afford it. You’ll need to demonstrate low income and inability to pay.

Using one of these assistance options significantly reduces bankruptcy costs. Those with very limited means may even qualify for free help.

Using Low Cost Bankruptcy Services Online

A newer option for low cost bankruptcy is using online legal services like Upsolve and Fresh Start Funding. These sites provide online tools and attorney review to assist you in preparing and filing low cost bankruptcy:

• Upsolve.org – Upsolve is completely free for low income filers. Their web app helps you prepare your forms and an attorney reviews your completed case before filing.
• Fresh Start Funding – This service offers attorney-assisted Chapter 7 bankruptcy for $750 total. You complete questionnaires online and an attorney handles the filing.

Online services can save substantially on attorney fees. Make sure to vet any company thoroughly before using these low cost bankruptcy options.

Finding an Affordable Local Bankruptcy Lawyer

If you want personalized guidance from a local bankruptcy attorney, cost will still be a major factor. Here are some tips for finding affordable representation:

• Compare rates of local firms. Call around and compare prices. Many lawyers offer free consultations. Get fee estimates from at least 3 local bankruptcy practices.
• Consider less experienced attorneys. Brand new bankruptcy attorneys often charge lower rates as they build their client base and expertise. Ensure they will still receive supervision from an experienced attorney on your case.
• Negotiate fees or payment plans. It never hurts to politely ask if a law firm offers discounted rates, pro bono allotments, or payment plans for clients facing financial hardship.
• Compare Chapter 7 vs 13 costs. Chapter 13 bankruptcy tends to have higher attorney fees due to additional required filings and court appearances. Opt for Chapter 7 if you meet the eligibility requirements.
• Request an “unbundled” arrangement. Some attorneys are open to providing limited, unbundled services at reduced costs, such as help preparing forms or making a court appearance, while you handle the rest of the case.

Shopping around for an affordable lawyer takes effort but is worthwhile to avoid debt from attorney fees on top of your current debts. Make sure you understand precisely what is covered for the fees being charged. Carefully read all retainer agreements before committing.

Preparing Your Own Bankruptcy Paperwork

Realistically, hiring a bankruptcy attorney may not fit anyone’s budget. Preparing DIY bankruptcy paperwork is complex but can be done with commitment. Here are some tips if going the DIY route:

• Study bankruptcy rules thoroughly. Carefully read sites like Nolo, AllLaw, and WikiHow to understand all procedures. A solid understanding is key.
• Use online tools. Sites like US Courts Forms and DoItYourself.com provide free bankruptcy paperwork templates to complete manually or electronically. Double check that all forms used are current.
• Seek free legal aid for guidance. Many legal aid centers can provide limited advice or resources for DIY filers even if they cannot provide full representation. They can help review your prepared forms.
• Study examples. Look at sample completed bankruptcy forms online to ensure your paperwork is assembled properly before submission. Form errors can delay your case.
• File electronically where courts allow it. Submitting computer-generated forms helps avoid rejections due to poor handwriting or scanning issues.

The DIY bankruptcy route has more pitfalls, like potential denial over paperwork issues. But with diligent research and preparation of forms, it is doable. Seek guidance whenever possible.

Key Takeaways – Low Cost Bankruptcy Tips

The prospect of filing bankruptcy has likely stressed you financially and emotionally already. Finding affordable representation should not create further anxiety. Use this summary of cost-saving tips to guide wise decisions:

• Research pro bono and legal aid bankruptcy assistance in your state
• Consider reputable online legal services providing discounted attorney fees
• Compare local law firms’ rates and ask about possible discounts or payment plans
• Weigh hiring less experienced bankruptcy lawyers charging lower rates
• Assess if you can realistically prepare your own bankruptcy forms with sufficient research
• Seek guidance from legal aid centers or court self-help resources even if not hiring an lawyer

Bankruptcy does not need to be unaffordable. Whether using online tools, legal aid centers, or negotiating lower attorney fees, it is possible to find a legitimate low cost option that fits your budget and situation. Carefully weigh the options so you can get back on track financially after the bankruptcy discharge. With some diligence and resourcefulness, you can find an affordable path to a Fresh Start.

Resources

Articles with Additional Tips

• 5 Affordable Options for Filing Bankruptcy Without an Attorney
• How Do I Find an Affordable Bankruptcy Lawyer?

Videos Explaining Low Cost Bankruptcy

• Filing Bankruptcy Without an Attorney
• The Hidden Costs of Bankruptcy Nobody Tells You

Low Cost Bankruptcy Assistance Programs

• LawHelp.org – Legal aid and pro bono resources by state
• StartFreshBankruptcy.com – Sliding-scale fees based on income