Many potential bankruptcy clients don’t understand how they can afford to pay a New York bankruptcy attorney and pay the costs associated with filing a bankruptcy. Often times people ask, “Id I can’t afford to pay my bills, then how do you expect me to pay your bankruptcy fees?” Below Iis a discussion about Bankruptcy costs in New York City, and the types of ways you can save money to pay for these costs.
New York Bankruptcy Expenses:
When filing for bankruptcy, there are two major expenses to be paid: The filing fee and attorney’s fees to hire a bankruptcy lawyer. There are two types of consumer bankruptcy, Chapter 7 where most of your debts will be discharged, and Chapter 13 which allows for a monthly payment plan to reorganize your debt. The filing fee associated with filing a Chapter 7 Bankruptcy is $335, while the filing fee for a Chapter 13 Bankruptcy is $310. Moreover, a Chapter 7 Bankruptcy attorney can cost anywhere from $1,000 and up, depending on your individual case. While a Chapter 13 bankruptcy can begin anywhere from $2,000 and up.
In New York, Bankruptcy attorneys’ fees are high. Therefore, it is important to come up with a some type of strategy to pay these fees. In a Chapter 13 bankruptcy, you have the ability to pay your attorney’s fees through your bankruptcy in your monthly payment plan. However, many New York Bankruptcy Attorneys will ask for you to give them half, or something up front to being working on the case. Unfortunately, in a Chapter 7 bankruptcy, you cannot pay your attorney’s fees in a plan, or after you file. The reason is, because once you file bankruptcy, your debts are often forgiven. Thus, you would not be required to pay your attorney. Understandably, most New York bankruptcy attorneys don’t want to take the chance of not getting paid. Here is what you can do to pay your attorney’s fees:
- Ask Family and Friends to help pay the costs
- Stop paying your credit card
- Discuss a payment plan with your New York bankruptcy attorney before filing
Ask Friends and Family to help pay the Costs associated with filing bankruptcy:
Although this may not be an ideal option for everyone, many clients of mine have friends, parents or significant others that want to help their loved one get out of financial distress. Thus, in order to do so, they help by giving them money to cover the costs associated with bankruptcy. It is important to note that if family and friends are going to cover the cost, they must be the ones paying the attorney in New York. This means, that you cannot charge the cost of bankruptcy on your credit card, and then have your family member or friend pay you back.
Set Money Aside
Many times, potential New York bankruptcy clients are hard workers, but even with the high cost of living in New York City , they are unable to pay their bills. Fortunately, if the potential bankruptcy client is working, they can save up their money to pay the costs associated with bankruptcy. This can be done by not paying your creditors. If you are one hundred percent sure that you are going to file bankruptcy, then you can stop paying your credit card bills which will, in turn, free up some cash that can be used to pay your bankruptcy attorney. In a Chapter 7 bankruptcy, unsecured debts such as credit card bills are discharged. Thus, if you are going to file bankruptcy then it makes little sense to keep paying your credit cards which could be used to help pay for your attorney.
Discuss a Payment Plan with your New York Bankruptcy Attorney before Filing:
There are different types of payment plans that Bankruptcy attorneys offer to their potential clients. Some attorneys allow you to spread payments over time, while others want the full payment. Bankruptcy Attorneys in New York, however, have one common rule. That is, they must be paid before the case is filed. As mentioned above, if the attorneys do not receive their fee up front in a Chapter 7 Bankruptcy, then there is no obligation that you will have to pay them once you are in bankruptcy, because all of your debt gets discharged.
Many times people don’t understand why they would retain a lawyer prior to having all of the fees in hand if the case can’t be filed anyway. However, there are important advantages to retaining a lawyer prior to having all of the money up front. The biggest advantage is that you can tell creditors to stop calling and harassing you by telling them that you hired a bankruptcy attorney. Another advantage is that you can begin gathering all of the paperwork, and your attorney can begin preparing your bankruptcy petition using all of the provided information. Therefore, once you paid in full, your petition can be immediately filed.
If you are looking for an experienced affordable New York Bankruptcy Attorney then please contact Karra Kingston and William Bonomo at Bonomo & Bonomo Attorneys At Law. They will work with you so that you will be able to afford the bankruptcy costs in New York.