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How Can I Afford to Pay for a Bankruptcy when I am Broke

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No, you can’t use your credit card and you shouldn’t borrow money to file for a bankruptcy.  Bankruptcy law does not allow an attorney to tell you to take on more debt right before you file for bankruptcy.   Some suggestions:  1) Ask for help from family members. 2) Stop paying other debt.  You want to make sure that you qualify for a bankruptcy before doing this. 3)   Work with your attorney.  Most attorney will allow a payment plan to help you.

Taking out more credit to pay attorney and filing fees. If you’re thinking that you can take out a payday loan, car title loan or an advance on your credit card and discharge those amounts in your bankruptcy, it might not work. If you take out a car title loan, you’re jeopardizing your vehicle and will have to pay the title loan company to get the vehicle released anyway. Any debt you incur in the 90 days prior to filing bankruptcy – or with the intent of including it in a bankruptcy – may not be discharged, and in fact, you could lose your right to a discharge under certain circumstances.

Things to avoid:

Withdrawing from your 401(k), your IRA or home equity. Generally this money is exempt or protected when you file a bankruptcy case. If you use it to pay for bankruptcy, you may incur penalties for early withdrawal or high tax bills.

Filing bankruptcy on your own. This is generally not a good idea because bankruptcy law can be confusing.  The bankruptcy court cannot advise you how to file.  You may end of paying more in the end if you try to do a bankruptcy on your own.

For other  suggestions on ways to pay contact The Howze Law Firm!

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