Should You Use Your Credit Payments To Pay For Bankruptcy Instead?


One of the problems facing people who need to file for bankruptcy is the fact that bankruptcy costs money. Between the lawyer's fees and the filing fees, bankruptcy can cost a lot, which is complicated because if you had that kind of money laying around, you wouldn't need to file bankruptcy in the first place, right?

It can be frustrating, but there are ways to get the money to file for bankruptcy with a lawyer. Chief among these is getting a loan from family or friends, but if no one can help -- or you don't want them to know in the first place -- then that option isn't feasible. Another option is to stop paying the bills that would be cleared by bankruptcy and taking that money to a lawyer. That can be risky, but it may work if you keep a few things in mind.

Consultations Are Often Free

First, look for a lawyer who has free consultations. Get legal advice about your situation first. If the lawyer thinks you won't qualify for bankruptcy anyway, then you don't want to stop making payments. You should only stop payments if the lawyer thinks you'll be able to get an approval for your bankruptcy filing.

Your Credit Will Be Affected Anyway

One issue with stopping payments on credit cards and such is that it will cause your credit score to go down. If your credit is already trashed, that might not matter to you, but if you've been barely hanging on, the thought of making your score drop might not be that nice. Bankruptcy will wipe out your credit anyway. No matter how good it is now, if you're barely making your bills and you're going to file bankruptcy, your score will drop. Not making payments would, in the end, have the same effect.

You Can't Risk Representing Yourself

Keep in mind that as risky as this move might seem, it's even riskier to represent yourself in a bankruptcy case if you don't have legal experience. While filing for bankruptcy might be a lot cheaper if you don't involve a lawyer, your chances of having your bankruptcy case approved when you represent yourself are slim. It's much too easy for you to make a mistake that the court could use to deny your filing. You need a lawyer helping you, even if that means taking some risks to afford one.

You Will Get Calls If You're Not Already

You should be aware -- if this isn't happening already -- that you will get calls from creditors if you stop making payments. Familiarize yourself with your rights regarding debt collectors, and follow additional instructions from your lawyer. There are ways to avoid being deluged with calls.

Never file bankruptcy without help from a lawyer. See one for a free consultation, and then do what you can to get the money to pay those fees. For more information about a bankruptcy attorney, contact a local resource in your area.


10 October 2019

Talking About Bankruptcy Proceedings

Hello, my name is Neil Gamford. Welcome to my site about bankruptcy proceedings. After my divorce, I was left near penniless and without a place to stay. I was paying all of my income to alimony and my remaining debts. Although I had a solid payment plan in place, it was getting difficult to cover my financial obligations without a home. Luckily, I met with a bankruptcy attorney, who helped me find a way to discharge my debts and start over. I hope to share the information I learned throughout that process with you through this site. Please feel free to visit anytime.