I am often asked by friends and family, “How can people afford to pay an attorney to file a bankruptcy when they can’t even pay their bills?”  This is a logical question, the simple answer is that the fees are usually paid by using the money that was going toward paying minimum payments on the debt that is to be discharged.

The following scenario is not uncommon:

Jack & Jill owe $20,000 in medical debt because of an unexpected medical emergency.  The hospital, doctor, anesthesiologist, and radiologist all expect to get paid and will eventually hire collection agencies.  The collection agency will add 33% to the bill and harass them constantly to try to get the money.  If that doesn’t work they will hire a lawyer to file a lawsuit.  The lawyer will expect to be paid for the time he must take to collect the debt.  Eventually, a judgment will be awarded by the court.  The creditors will have 8 years to collect their debt, but they won’t want to wait that long.  They will begin garnishing 25% of Jack’s paycheck and attempt to seize their bank accounts and tax refunds until the debt is paid off (in full, plus the new fees and costs to do the garnishment.)  Jack and Jill’s credit will be ruined even for a few years after the debt is paid back.  Bankruptcy will probably only cost about $1,200 and Jack and Jill’s credit will begin recovering immediately.

How can Jack and Jill afford not to file for bankruptcy?

If you have bills that you simply can’t afford to repay, call us at (435) 627-1260, request a free consultation on this page, or fill out a free online bankruptcy review form.  Our fees are reasonable and we offer affordable payment plans.