How Do Clients Pay Their Bankruptcy Filing Fees?

This is one of the most common questions that I get asked when talking to clients about filing for bankruptcy protection. I have had a lot of clients say that if they had the money for the bankruptcy, they would not need to file for bankruptcy. This is not true since in most cases these clients have a debt load that they could not pay off in twenty years. The other problem is if you do not file for bankruptcy protection and just use tax refunds and 401k loans to pay back creditors you jeopardize your retirement savings and emergency savings, without making any dent in your debt. This approach just kicks the can down the road, and you will be in the same issue in the next 6 months with creditors breathing down your neck.
Our clients use several methods to pay our fee. In some cases clients are able to stop paying creditors to cover the attorney fees. In other cases they borrow the money from family or friends. In most cases the money borrowed from family or friends is the best way for them to help you out, if they just give you money to help pay your debt, that does not alleviate the problem. The other option some clients use is sell some personal possessions to cover the attorney fees. The objective after a bankruptcy is to get a fresh start, and get rid of all of the debt. We want to see our clients prosper after filing for bankruptcy, so they can save for retirement and provide for their family.