Every profession has a phrase they hear....a lot. I imagine that car mechanics often hear that the car should not break down after only 40, 50, 60k miles, that bankers receive complaints about overdraft fees, that accountants hear that tax bills are too high....and bankruptcy attorneys are often asked how people afford to pay for a bankruptcy attorney when they do not have enough money to pay their bills.
It is a valid question and one that I have not discussed in detail on my blog....so here goes. I would say that there are three ways that people most often find money to hire a bankruptcy attorney:
1. Income tax refund;
2. Family members;
3. Extra money from not paying credit card/medical bills.
Income tax refund is self-explanatory. For many folks, an income tax refund is a once a year late Christmas. It has been my experience that many people use this lump sum of money to attempt to pay off credit cards, medical bills or car loans. I think that paying down debt is an excellent use of a tax refund for most people. However, for those out there who have reached the end of their financial rope attempting to get out of debt for years with nothing to show for it a tax refund is an excellent way to pay for bankruptcy. So, as tax season creeps up on us again keep your refund in mind as a way to pay down debt or eliminate most debts through Chapter 7 bankruptcy.
Another means I have seen people use to pay a bankruptcy attorney is through family. Often a family member has seen their loved one struggle with debt over a long period of time and wants to help them obtain a fresh start through bankruptcy. I have also seen situations where family members offer to pay a certain sum of money to settle debts or to pay for bankruptcy attorney/filing fees; whichever my client would prefer.
Finally, and probably most commonly, is for the person(s) filing bankruptcy to pay the attorney fees through a payment arrangement with the bankruptcy attorney. Once a person has met with a bankruptcy attorney and made the decision to file bankruptcy he or she will typically stop paying credit card, medical and other unsecured debts (I would not recommend stopping payment on your debt without first consulting with a bankruptcy attorney). Once the client has stopped paying on these monthly debts they have freed up some money to pay the attorney. This can take several months, but many bankruptcy attorneys will accept payment over a period of time.
So I have answered the age-old question of how someone with no money can possibly pay for a bankruptcy attorney......but I know that I will still hear the question at my law firm, Halcomb Singler, LLP....and that is fine with me. I understand that bankruptcy is a scary and unfamiliar process, which is why people call me. I do not expect you to know anything about bankruptcy just as I may know nothing about your profession, but I am happy to answer your questions in a free initial consultation if you are living in Carmel, Noblesville, Zionsville, Fishers, Tipton, Kokomo or the Indianapolis area. Just click here to enter your information if you would like to set up an appointment.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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