Many in Ohio Ask "How Can I Afford to Pay for Bankruptcy?"
Many Ohioans face the same conundrum ...if I can't pay my bills, then how can I afford to pay the attorney and filing fee to go bankrupt? Once you have resolved to file bankruptcy, then you may be able to stop making payments to some or all of your creditors. This will leave funds available to pay for your bankruptcy instead of using the funds to pay debts that will be discharged upon completion of your bankruptcy. Of course, you should consult with an attorney before you stop making any payments to determine if you can stop making payments and which creditors you must continue to pay.
The legal fee charged will depend on the nature and complexity of your case and you can usually get a quote by phone in your initial consultation with an attorney. There will also be a filing fee which is set by the Bankruptcy Court. In the Northern District of Ohio, the Chapter 7 filing fee is currently $299.00 (see Northern District of Ohio Bankruptcy Fee Chart for other fees).
In some cases you may be able to borrow funds through a small loan from a family member. However, if you do this you must be completely honest about the reason you are borrowing the money since they will become your creditor and the loan must be disclosed in your bankruptcy.
I do not suggest or advise that you incur additional debt from credit cards or an institutional lender for the purpose of filing bankruptcy and for this reason our firm cannot accept credit cards for bankruptcy payments.
If you expect to receive a tax refund, you could use the funds to pay for your bankruptcy and begin your new financial start rather then spending the money to catch-up on bills only to fall behind again and repeat the cycle.
A last resort may be to withdraw funds from or borrow against your retirement account such as an IRA or 401(k). Save this is a last resort because you may face steep penalties for withdrawal. However, you can usually exempt retirement funds from creditors in bankruptcy and, therefore, you may be better off to use a small portion of your retirement funds to pay for bankruptcy and discharge your debts rather then depleting your retirement funds in an attempt to pay for bankruptcy. See Ohio Exemptions: Bankruptcy May Save Your Retirement Fund for more on this topic.
As you can see, there are several options that may work to bring debt relief within your reach. Talk to an attorney to find out which option will work for you.
