Bankruptcy is one workable method to eliminate extreme debt. But after all of your debt has been eliminated, you are left with the hassle of having to handle bankruptcy costs. If there was a way to save on bankruptcy costs, filing for bankruptcy would be an easier task. According to the Federal Courts, where most bankruptcy cases are tried, bankruptcy has long-term financial and legal consequences. The main reason for this is because filing for bankruptcy is a process that requires many costly steps. Failing to complete all steps in the correct order will result in an early dismissal of your case. So, it is wise to complete all necessary steps in order to go through with your plan to file bankruptcy. In doing so, choosing to save on bankruptcy costs will help make filing a lot easier.
Before Filing, Consider Alternatives
Before you begin the filing process, weight all of your options. You may find that can choose another option to take care of financial debt, then you would not have to worry about saving on bankruptcy costs. Below are some options that are worth considering before settling on filing bankruptcy.
· Try Negotiating With Creditors
You may be able to talk to your creditors in an effort to spread out your payments over a longer period of time or get them to reduce your payments. A creditor is more likely to work with an individual who is willing to make other payment arrangements to ensure that payments are being made.
- Consider Getting Federal Assistance
For instance, if your debt is a result of failed attempts to get your mortgage payments back on track and you are on the verge of a foreclosure, you can contact different federal agencies whose primary cause is to help the mortgage payments. Utilizing these agencies could suspend your payments for a year or more, or even reduce your payments to match your income. Some of those federal agencies are the Home Affordable Modification Program (HAMP) or Home Affordable Foreclosure Alternatives (HAFA). If you are in mortgage debt because of unemployment, you may be able to receive assistance from the Home Affordable Employment Program.
· Talk to the IRS
If tax debt is your issue, talking to the IRS may be the solution to your problems. The IRS is always willing to negotiate depending on the situation. The IRS may offer you an extended payment plan or even offer a compromise in reducing your tax obligations.
· Seek Advice from Credit Counseling
If you have no other option but to file for bankruptcy, this would be the first step you would need to take. It is suggested that you speak with a credit counselor to find out if bankruptcy is the best option for you.
Bankruptcy as Your Only Option
After considering all other options, you may find yourself still in a position of needing to file for bankruptcy. If bankruptcy is your only option, follow these tips in an effort to save on bankruptcy costs.
· Save On Filing Fees.
Rather you decide to file on your own or use a lawyer, you must pay filing fees to start the process of bankruptcy. Even something as simple as filing could give you fees you do not want to pay if they are too high. A tip to saving on bankruptcy costs is to request to have your fees waived or to have your payments due in installments. All requests will depend on your income, family size, and all related circumstance.
· Find A Low-Priced Lawyer.
Another tip to save on bankruptcy costs is to see if you are eligible for free or reduced-priced legal services. This also depends on your income and other related circumstances. In order to find lawyers who may be willing to work with you for free or a low price, check with your nearest federal bankruptcy court, state and local bar associations, or the federal legal services corporation online search engine.
· Do Your Own Research And Ask Questions.
If you prefer to take matters into your own hands, ask questions or consult your lawyer (if you already have one) on cheaper methods to filing bankruptcy. Do not be afraid to let it be known that you are in need of some legal advice in an effort to fix your finances. Asking questions and seeking advice could be your ticket to saving on bankruptcy costs as well.
The bottom line to it all is that bankruptcy costs money and fees can build up to be almost as unbearable as the debt that you are in need of erasing. However, make the process easier by first considering all other options before filing for bankruptcy. If all other options, like talking to creditors and the IRS or enlisting in federal assistance fail, the make sure to save on bankruptcy costs by following the methods listed above and make filing for bankruptcy easier and more affordable.