Need a Bankruptcy Payment Plan?

Seems like a Catch-22 situation. If you can’t afford to pay your overwhelming debts, how can you come up with the money to pay a bankruptcy lawyer to file a bankruptcy and discharge the debt? It’s even worse if your wages are being garnished. You know that filing the bankruptcy will immediately stop the wage garnishment, however, in order to file the bankruptcy you need to come up with the money to pay the legal fee. It seems like a vicious circle that you cannot escape.

We offer a bankruptcy payment plan that can be tailored to your individual needs

Rather than setting you up on a schedule that requires you to pay the certain amount of money every week or two, we work with you. We will open a file for you as soon as you pay the initial deposit of $250. Once we open up your file, you can refer all of your creditor calls to us. This generally means that they will stop calling you and start calling us. This gives you some breathing room while you fill out the paperwork that we need in order to process your bankruptcy. Just getting the phone to stop ringing off the hook will be a tremendous burden lifted from your shoulders.

Unfortunately, simply opening a file in my office will not help you if your wages are being garnished. To stop the wage garnishment, the case actually has to be filed with court. Court rules prevent us from filing your Chapter 7 case unless the basic fee is completely paid. Therefore, many of individuals find it necessary to have a family member or friend pay the fee for the bankruptcy filing in order to stop the wage garnishment. In Chapter 13 cases, the entire fee does not have to be paid before the case can be filed.

In most cases, what typically happens is this: you hire the office by paying the initial deposit, and we open a file for you. This permits you to refer all your creditor calls to us. You will immediately stop paying all unsecured creditors, freeing up money that will enable you to pay the legal fees for the bankruptcy. Note: it is important that secured debt, such as cars and houses, be paid in order to prevent foreclosure or repossession. However, credit cards are discharged in both a Chapter 7 or a Chapter 13 bankruptcy, so it is safe to stop paying them in most cases before the bankruptcy is filed. Our worksheets must be returned within 30 days, and the balance of the costs paid within 60 days of hiring the office. As a practical matter, this just doesn’t give creditors enough time to take action against you in most cases, but it is enough time for most everyone to complete our questionnaire, and pay the balance of the fee.

In some cases of repeat filing, however, the result described above may not happen, as there are limitations on the “automatic stay” that stops collections. If you have been in a bankruptcy case within a year of filing a subsequent case, discuss this with your attorney.

Bankruptcy payment plans are just one way we help you get the protection and assistance you need.