QUESTION
Can my daughter file chapter 7 bankruptcy without the money for fees?
Asked on May 15th, 2015 on Bankruptcy - Illinois
More details to this question:
My daughter qualifies for Chapter 7 bankruptcy. However, she cannot come up with the $1,500 dollar amount needed for fees all at once. Any suggestions about what we can do?
7 ANSWERS
Any money owed by the debtor on the date of filing is discharged in the BK filing, including any attorney fees owed on the date of filing. In our office, I can take a credit card from the debtor's mother, brother, sister in law, etc.. The debtor can then make payments on this credit card debt after the filing of their BK. This may be an avenue available for your daughter.
Answered on May 19th, 2015 at 2:42 AM
Most people have to wait to save up the money to pay for the legal fees and court costs. Some people take out a retirement loan or pawn their vehicle title to get into bankruptcy faster, while others look to family or friends for a gift to pay these costs. If your daughter received a large tax refund, she may now want to change her tax withholding so she gets more money in her paycheck instead of waiting until the end of the year.
Answered on May 18th, 2015 at 5:06 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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One thing is to consider shopping a bit for a less expensive attorney. $1,500 is the maximum charge, you can probably find an attorney who will do it for somewhat less. By law, the attorney must be paid before the case is filed. But it's common to allow clients to make payments before the filing. For example, I find that clients can often make payments of every payday and cover the fee in a month or two. Remember that after you've decided to file bankruptcy, you can stop making payments on most or all of your debts. That usually frees up cash to pay for the bankruptcy.
Answered on May 15th, 2015 at 4:30 PM
Deborah F. Bowinski
She can look for a lawyer who will accept installment payments to pay the legal fee. Or, she can do a whole lot of research and learning and consider filing her case without the benefit of a lawyer to guide her.
Answered on May 15th, 2015 at 4:23 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The court charges only $335.00 as a fee for filing a Chapter 7. Presumably her lawyer wants a fee of $1,500.00. She can seek a cheaper lawyer, but (a) the $1500 is actually a bit lower than the market rate for these services, and (b) if you hire a really inexpensive lawyer, you are likely to get the quality of legal services for which you have paid. She can also file without a lawyer. I generally don't recommend this course of action, but if she urgently needs to file, she can do it.
Answered on May 15th, 2015 at 4:14 PM
You can pay some to get the work started, but your attorney can't file until all is paid.
Answered on May 15th, 2015 at 3:32 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Some attorneys will accept payments each month. But most attorneys will require payment in full before the case can be filed. You should discuss it with the attorney, and see how quickly the case needs to be filed.
Answered on May 15th, 2015 at 3:31 PM