Some people already have bankruptcy fees saved up. Others borrow money from a friend or family member to file thier bankruptcy case. If these approaches aren’t feasible in your current life situation then finding money for bankruptcy can be a real challenge.  Here are a couple of real world ideas to consider once you’ve made the decision to file for bankruptcy

First, you might want to stop paying on unsecured debts that will go away in the bankruptcy, such as credit card debts, medical bills, and personal loans. Not only is this approach common, but it’s also expected.  Unsecured debts are often written off entirely in bankruptcy or paid at less than their full amount. Therefore, continuing to pay these debts before filing can be a waste of money. Instead, you can set aside the payments you usually make on these debts and use the money for your bankruptcy fees. Even so, not all unsecured debts go away in bankruptcy.

For instance, you’ll remain responsible for some tax and all domestic support obligations, as well as student loans and some other obligations. So you’ll want to make sure you have a plan in place for these debts when you are finding money for bankruptcy.

Second, consider getting a quick side gig like Uber or Doordash when finding money for bankruptcy.  I get it you are stretched at every turn but a side hustle will allow you to get even more quickly into a better financial place.  I know an attorney telling you to hustle to pay him is off putting to some people but after 20+ years in this business those that challenge themselves to quickly get their cases filed are the clients that bounce back from bankruptcy in the shortest amount of time.

Finally, something else to consider is to keep paying bill until yu know if bankruptcy is right for you.  You should always continue to pay your living expenses, such as rent and utilities, student loans, and the payment on any property you wish to keep in bankruptcy, such as a house or a car. As for your other bills, it’s wise to keep making your payments until you have consulted with an attorney, learn that you qualify, and have made a final decision to file for bankruptcy. 

Then if you stop paying your debt and then change your mind—or find out filing isn’t in your best interest—you’ll likely have a hard time catching up and will be worse off than you were before (especially when you factor in late fees).

The good thing is we can get you in for a consultation in the next 24 hour in most cases so you will know if bankruptcy is the best option. Call the team at the Utah Bankruptcy Guy today!

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