If your Chicago bankruptcy lawyer was to ask if whether or not you could
afford to file bankruptcy, you might think it was a trick question. After
all, bankruptcy is a tool for those who are financially insolvent and
can't afford to resolve their debts. While bankruptcy is designed
to help those in financial hardship, not everyone can afford to file.
How Much Does Bankruptcy in Illinois Cost?
A new study, conducted by the National Bureau of Economic Research, has
found that many Americans are "too poor" to file for bankruptcy.
The study estimates a range of 200,000 to 1 million Americans considering
bankruptcy cannot actually afford to file their case. Why? Filing fees
and lawyer costs may put bankruptcy out of reach.
Chapter 7 case can cost a debtor up to $300 in court fees and upwards of $1500 for
a bankruptcy attorney. While these fees don't sound like much compared
to the benefits provided by a bankruptcy filing, many people lack the
cash flow necessary to pay for such fees. A study conducted by Columbia
University found that 200,000 people would not have been able to file
for bankruptcy last year without the help of their tax refund check.
These studies reveal some interesting facts about the financial state of
many Americans, but it doesn't mean that filing is impossible. There
are a few ways to find help with your bankruptcy case. First, find a pro
bono attorney, or one who offers flexible payment plan options. If you are
filing for Chapter 13 you may be able to roll your lawyer fees into the repayment plan. Second,
request a filing fee waiver with the court. There are instances in which
the court will waive filing fees for certain Chapter 7 cases.
If you think you can't afford to file for bankruptcy you need to be
talking to a bankruptcy lawyer in Chicago fast. Financial insolvency does
not get any better with time, and yet far too many people put off filing
for bankruptcy until it's too late.