If you're considering filing for bankruptcy, you might assume Chapter 7 is your best option. While it's true that it's usually faster and easier to completely wipe away many of your debts with Chapter 7, Chapter 13 has several advantages that Chapter 7 lacks. One of these benefits is how you can pay your attorney's fees.

How Chapter 13 Bankruptcy Works

Chapter 13 bankruptcy works by reorganizing your debts so you can make payments to your creditors for the next three to five years. Then, after this payment plan period ends, whatever eligible debts remain will be discharged.

Many Chapter 13 bankruptcy attorneys will allow you to pay most of your attorney's fees through the repayment plan. Depending on your Chapter 13 case and your attorney's preferences, you'll probably pay an initial deposit that goes toward some of the early work that your attorney will do in your case. Then, the remaining attorney's fees you owe will be paid off when you make payments during your Chapter 13 repayment plan.

Paying Your Attorney Through the Chapter 13 Repayment Plan

What often happens is that you'll make your plan payments each month to the bankruptcy trustee. That trustee then forwards a portion of those monthly payments to your Chapter 13 bankruptcy attorney.

This is an effective system as it ensures your attorney only gets fully paid if your bankruptcy is successful. It also eases your financial burdens when filing bankruptcy, as you may not have the funds readily available to pay your attorney their entire fee upfront.

Other Costs of Chapter 13 Bankruptcy

As nice as it is to pay your lawyer's bills through your Chapter 13 plan, there are other costs that you'll need to pay in the early part of the bankruptcy process. At a minimum, you'll need to pay the filing fee and your pre-bankruptcy credit counseling course fee.

At The Craig Black Law Firm, I offer all my clients a free consultation to answer any questions they have about their options and how to pay for filing for bankruptcy protection.

Still Have Questions About How to Pay for Bankruptcy?

Bankruptcy lawyers know their clients don't usually have the most money available. After all, there's a reason they're thinking about declaring bankruptcy. Luckily, there are ways to deal with these financial challenges. To learn more, The Craig Black Law Firm at (678) 888-1778. When you call, you'll get to speak directly with me, Craig Black, and get the best advice on what your bankruptcy options may be.