Most prospective clients want to know how much my fees are and whether we have payment plans. Although we offer payment plans, like most bankruptcy attorneys in Arizona, legal fees must be paid prior to filing. Naturally the next question is “how am I supposed to pay bankruptcy fees when I cannot pay my bills?” Below are some suggestions as to how to obtain money to pay your bankruptcy attorney.
Stop Paying Your Credit Cards
You should not use a credit card to pay for bankruptcy. However, if you’re committed to filing bankruptcy I recommend stop paying your credit cards and put that money aside for your bankruptcy fees. Staying current on credit cards that are going to be discharged in bankruptcy is essentially throwing money away.
Use Your Tax Refund
Clients who are living paycheck to paycheck rarely come into additional income except when they receive tax refunds. Tax refunds are non-exempt so any refund owed to you becomes property of the bankruptcy estate upon filing. However, if you receive your tax refund prior to filing and spend it appropriately, that money does not become part of the bankruptcy estate. Bankruptcy legal fees and costs are an acceptable way to spend your tax refund. Therefore, if you are looking for a way to obtain the fees necessary to file your bankruptcy, you may want to consider waiting for your tax refund.
Borrow from Family or Friends
The third most common way I advise clients to obtain the necessary fees necessary is to borrow money from a third party, such as a friend or relative. It’s perfectly acceptable to receive money from a third party to pay for bankruptcy, but remember that you cannot repay any family members or friends within one year prior to the filing of your case.
If you have any questions regarding bankruptcy legal fees or how to come up with the money for your bankruptcy, please contact one of the experienced Tucson and Phoenix bankruptcy attorneys of Ariano & Reppucci, PLLC.