How Can I Pay For My Bankruptcy When I Am Having Financial Trouble?
A typical question during a bankruptcy consultation meeting is, “When I am facing financial hardships, how can I pay for my bankruptcy?” Before filing for bankruptcy, you must be very careful how you spend your money. In certain situations the Trustee (think of the Trustee as the lawyer for your creditors) can go after certain transactions made by the debtor before filing. An example is when a debtor pays back family members for previous debts in certain circumstances.
Bankruptcy fees for a standard Chapter 7 case can typically range from $1,100 to $2,000. This does not include the filing fee. Many individuals filing for bankruptcy may find that funding a bankruptcy may be difficult due to the financial hardships at that time. Not everyone has a friend or family member that can help pay for a bankruptcy. One popular alternative is to use your tax refund to pay for your bankruptcy.
Tax refunds are a popular subject for the Trustee to ask about at your 341 hearing. The 341 hearing is your meeting of creditors and typically takes place 1 to 1 ½ months after your bankruptcy filing. The Trustees routinely find that debtors have spent their tax refunds on non-exempt property or given the money to an insider creditor. In certain situations, the Trustee can go after the debtor or the party that received the money.
One way to use your tax refund is to pay for your bankruptcy. You can use your tax refund to pay for the filing fee and legal fees charged by the bankruptcy firm. Many individuals find this to be a convenient way to help speed up the bankruptcy filing process.
By: Eric M. Nolan, Esq. (Licensed in Arizona)
Nielsen Law Group offers a free 30-minute bankruptcy consultation for individuals looking to file bankruptcy. We can provide in-house or phone consultations. If you are thinking of filing for bankruptcy in Arizona and want a free 30-minute bankruptcy case review, give us a call at (480) 888 – 7111 or submit a web request here.