3 Tips for a Low-Cost Bankruptcy

If you are considering bankruptcy but are hesitant about fees and other costs, there are ways to pursue a low-cost. However, even with an inexpensive bankruptcy, you may still encounter hidden costs. In some cases, you may not have to even file bankruptcy to protect your assets.

Three Tips for a Low-Cost Bankruptcy

1. The first tip is finding an inexpensive attorney. If you have a limited income, take advantage of free consultations that allow you to talk with different lawyers and see what services they provide. Take notes at these meetings to determine your satisfaction level with each one. Also utilize attorney search websites to find out which attorneys are in your area.
2. You can also consider doing the bankruptcy pro se, which is basically representing yourself. You will find many resources to help you prepare the requisite paperwork needed to file on your own. Researching resources on the bankruptcy process at your local library. Also, if you have acces, go on the Web to find information about your state's bankruptcy procedures. Additionally, you should invest in buy a bankruptcy kit that provides completed sample forms to help guide you.
3. You can do an inexpensive bankruptcy by combining the two tips above. Consult with attorneys who can help you prepare the legal documents and then do the actual filing yourself.

However, note that even an inexpensive bankruptcy may have hidden costs and unexpected expenses. Do some research regarding low cost ways to file bankruptcy. Research may save you hundreds of dollars in the long run.

When a Bankruptcy is Not Necessary

You may not have to file bankruptcy under the following circumstances: 

• You have only a few debts and have a valid reason not to pay the debt. For instance, if you borrowed money to purchase a car that subsequently proves to be a lemon. Instead of filing for bankruptcy petition, you may assert a defense against the manufacturer, dealer or lending creditor if you are sued.
• Your after-tax net is less than $154.50. In this case your wages cannot be legally garnished.
• You do not own your own home.
• All of your income or assets are from Social Security, benefits received from your service as a veteran, your pension, public assistance aid, unemployment compensation benefits, alimony or child support.
• You only owe medical bills. Medical creditors who receive a judgment against you cannot force you to sell your home; any judgment does not take effect until your home is sold or transferred. However, they may garnish your wages; in this case you should consider bankruptcy to receive an automatic stay that prevents garnishment.
• You can basically pay off your current debts without hardship. Consider negotiating with creditors through debt settlement.

Talk with an Attorney

Find an inexpensive attorney by searching web and local resources. Consider free consultations and find a lawyer is sympathetic to your plight. Some attorneys give discounts to clients who do at least part of the process themselves.