You may be surprised to know that many people filing for bankruptcy are shocked to realize that the process is not free. If somebody is struggling financially, it may seem unreasonable to ask them to pay for a process that could erase their debts. Many people avoid filing for bankruptcy after they learned that there’s a cost which is associated in the process. A failure to file for bankruptcy early on could lead to your financial situation worsening and the chance that you could risk your assets. Filing for bankruptcy using a low-cost option or free bankruptcy can often come with some long-term risks as well. Filing for bankruptcy is a serious step that it’s important to consider the depth of your current financial situation and how bankruptcy could help you. Here are some options you have if you have no money to file for bankruptcy!
The Options for Bankruptcy
In order to file for Chapter 7 bankruptcy will have to pass a means test in order to qualify. This is often a preferred type of bankruptcy because you can walk away from your debt. Under Chapter 7 bankruptcy you will need to meet a specific set of conditions simply to go through the process. In Chapter 13 you will not need to qualify for a specific means test because you’ll be repaying all or a portion of your debt. By committing to a repayment plan, the cost of bankruptcy will be a bit more but you can enjoy greater protections for your assets as well as a lesser impact on your credit.
Perhaps one of the greatest benefits of choosing to file for bankruptcy is that you can access an automatic stay. If you’re dealing with multiple debt collectors on a regular basis, an automatic stay will make sure that you will have less pressure on you to pay the debt and the chance to follow your repayment plan. An automatic stay can make sure that your creditor can be legally restricted from contacting you and this means less arresting phone calls and less chance that they may take from your account as soon as you start to earn a bit of extra money.
Discharging Your Debts
The largest advantage of using bankruptcy is that you’ll be able to discharge your debts. If you’re facing a large portion of unsecured debts like medical debt or credit cards, all of these debts can be discharged when you are filing. This means that you won’t be responsible for paying a large lump sum of it back. The amount of time that it will take you to pay back this debt and the amount that you’ll be responsible for comes down to the type of bankruptcy that you choose but taking the option to file for bankruptcy could mean freeing yourself from a significant portion of the debt that you owe.
Speaking to a Bankruptcy Attorney
Before you begin the process of filing for bankruptcy you should consider speaking to a bankruptcy attorney first. Working with a bankruptcy attorney will help to determine the right type of bankruptcy that will suit your needs and all of the benefits that you can receive by filing for bankruptcy. There are some attorneys that are even willing to work with you on the cost of filing. You could pay for the fee to file for the court or you could make a payment arrangement with your attorney. Rather than having to front all of the costs of bankruptcy on your own, working with an attorney can make sure that the process of filing can be much more efficient and also much cheaper.
Exploring your options and making sure that you have access to all of the assistance that you need to file correctly can be an important step. A bankruptcy attorney can also work with your creditors and potentially negotiate a better settlement for you or an improvement for the debt that you owe. Rather than getting consistently harassed by creditors or facing ongoing and looming debt, you can take control of the situation and make sure that the process of resolving your debt problems can be made manageable. If you would like to hear more about the process of bankruptcy or you could use guidance on navigating your own financial situation contact us today to learn more about the process.
There are options available if you have no money to file for bankruptcy, contact us today if you need assistance with a bankruptcy option!