How To Come Up With The Money To Hire A Sacramento Bankruptcy Lawyer
Your car lender is threatening repossession and your mortgage lender is threatening foreclosure. On top of that, you lost your job a few weeks ago. You don’t see any way to repay your debts. You call a bankruptcy lawyer in Sacramento and schedule a free consultation. During the consultation the bankruptcy lawyer tells you that chapter 7 bankruptcy can discharge your unsecured debts. You can give up your underwater car and house to the lenders and not be liable for any deficiency. In short, you can get rid of your debt and get a fresh start. You think, “great, I can stop this nightmare and get back on my feet. I’ll feel so much better when this is all over and the bills stop flooding my mailbox and my phone stops ringing off the hook.” Then you hear something the lawyer said about his $2,000 fee.
$2,000!!! What part of “I need to file for bankruptcy because I don’t have enough money” did the lawyer not understand! You think “how can I possibly afford $2,000.” None of it makes sense. On the one hand, you need to file for bankruptcy because you don’t have enough money. On the other hand, you can’t file for bankruptcy because you don’t have enough money to pay the lawyer.
Why is bankruptcy so expensive?
Here’s the truth. Bankruptcy lawyers charge thousands of dollars because Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. The Act adds a lot more paperwork to the bankruptcy process. Consequently, bankruptcy lawyers started to charge more to compensate themselves for this extra work. As a result, your bankruptcy lawyer may quote a fee in excess of $2,000.
How you can afford bankruptcy.
There are several ways to come up with the money to pay a bankruptcy lawyer in Sacramento and achieve debt relief through bankruptcy.
DISCLAIMER: Every bankruptcy lawyer is prohibited from advising you to incur more debt in contemplation of bankruptcy. (Welcome to the Bankruptcy Abuse Prevention and Consumer Protection Act). Therefore, Sacramento Law Group is not advising you to borrow money to pay for a bankruptcy lawyer. Also, it is important to get a free consultation with a bankruptcy lawyer before pursuing any of the following methods.
Before pursuing any of these methods, talk to your Sacramento bankruptcy attorney. To qualify for chapter 7 bankruptcy your average monthly income for the past six months must be below a certain threshold. Consequently, increasing your income through the above methods may damage your ability to file for chapter 7 bankruptcy. In short, talk to your bankruptcy lawyer about how you should pay for bankruptcy given your financial situation.