What does one do if they can't pay their bills and cannot afford a bancruptcy lawyer?

Answer 1

I filed for bankruptcy 4 years ago. I made payments to my lawyer. I couldn't really afford one payment. Some of them will offer a payment plan.check into it

Answer 2

Depends on what you mean by "can't pay bills". All bills? Just credit card bills? Rent/mortgage? If you mean all bills, then certainly, bankruptcy is the way to go. It is possible to purchase a "do it yourself" bankruptcy package at a stationary supply store. I'd suggest calling stores in your area until you find one. This makes it possible for you to fill out the paperwork yourself, though it is a bit overwhelming. I personally found it hysterical that a bankruptcy lawyer from Legal Aid in my area costs $900.00 just for a retainer! If the person has 900 bucks, normally, that would be enough to pay a few bills minimum payments!

Also, find out from your County Clerk (usually in the local Courthouse) what costs are involved in filing, and ask for a "Waiver of Fees" form.

Legal Aid/Legal Serivces is a good place to start for the possibility of a lawyer who may help free of charge, though I haven't seen one yet who will do so on a bankruptcy without a retainer.

My biggest question for you to ponder is this:
Why are you unable to pay your bills?
1) Just got out of control
2) Recently injured on the job and can't work
3) Recently disabled
4) Bills grew mostly through increases in rates on credit cards.

If it's #1, I wish you luck and hope you remember this for the future. It's so very worth it to pay attention to what you have to spend. "I cannot afford that" is a perfectly sound way to decide whether or not to buy something.

2 & 3) You have several options available to you. Worker's Compensation is often what people go to when injured on the job. If you are recently disabled, getting paperwork together showing that will sometimes help in letting creditors know why the sudden inability to pay. You may or may not also have more options for lawyers willing to help. If you are permanently disabled, I would look up "Social Security +attorneys" in a google search to start with.

4) This one is common as the air you breathe. A credit card company has this "racket" going on where if you pay minimum payments, essentially you never make a payment on the balance; all you pay are all the fees and APR. The idea on the company's part is to make a killing off you. The idea on your part is to pay over the minimum to get that total balance down as fast as possible. Best bet for future reference is to only have one credit card and absolutely do not use except for emergencies and only if you can pay the entire balance off in 6 months or less on your current income without sacrificing other bills.

Hopefully there is something in here that is new information to you. Good luck. This is a tough one, and you are far from alone.

Answer 3

Kathleen,

I just went thru a bankruptcy -- it's pretty horrifying. I did have a very good lawyer and he charged me $2000 -- a friend paid.

Do not even think of going it alone. I would suggest going to Legal Aid. Don't know where you live, but the websites are usually lawhelp.org/state where you live. Ask for a bankruptcy attorney.

Good luck,

Kathie

Answer 4

I guess every situation is different. There are many free advice centres around but difficult to recommend one not knowing where you live.

One bit of advice I can give and that is NOT to take out any sort of loan however tempting it is / looks / is advertised to make your life better - its a short fix that will only get you in to further trouble.

If you are in the UK go to the citizens advice bureau - they will be able to refer you to some help.

http://www.citizensadvice.org.uk

Further, instead of ignoring the bills, call the company / companies up - many of them can put you on a plan to spread out the bills to make payments easier for you. You'll need to readjust your spending habits too - but my main advice is to seek free professional help.

Answer 5

There are credit counseling services out there,but check with your BBB before calling. The Better Business Bureau may be able to steer you to a good one. They should be able to take their fees from what they save you or you don't need them.

Answer 6

Find free legal aid. Start by visiting your nearest CAB. Best luck

Answer 7

Go to a credit counseling agency. But be careful with those too. Select one that is reputable.

Answer 8

Go to your local legal aid office...they may be able to help.