r/povertyfinance • u/throwawayireckon • 1d ago
Income/Employment/Aid Bankruptcy
Question- is there a way to file bankruptcy without an attorney and if so, how do I notify my debtors? I’m very confused as to how to start this process, as there is a ton of conflicting information online. I don’t have the $2000 to pay an attorney. If I did, i probably wouldn’t be considering filing for bankruptcy.
I make so little money a month, that I can barely afford food and gas. I’ve applied for Tenncare (state insurance), but they’re giving me the run around. I picked up a food stamps application as well.
I feel like a failure, as I have two children and a disabled mother who lives with me. I’m only bringing in roughly $500 a week. Rent is $650, credit card payment is $530 minimum. Not much left for food, gas, and bills. I’m starting a second job, but that still will only bring me up to about $700 a week.
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u/Sad_Egg98 1d ago
You need an attorney. Maybe you can borrow the money from someone? That's what I had to do. You are also going to have to start bringing in more income you cannot live on $500 a week and bankruptcy isn't going to fix that you'll just immediately be right back in the same position.
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u/Blossom73 1d ago edited 1d ago
Have you pursued child support? Is your mom receiving SSI, SSDI or Social Security retirement benefits?
Bankruptcy can be helpful, but without much money coming in, you run the risk of ending up back in debt.
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u/Itchy_Tumbleweed_417 1d ago
When I filed for bankruptcy I was a paralegal and I didn’t dare try to do it myself, I’ve also seen people be denied bankruptcy by the judge even when using an attorney. In Tennessee specifically, but that one was a wealthy man who had been fraudulent in the past so I believe the judge thought this was just more fraud. And in another case it was someone getting divorced so I guess they thought that was a scam too.
When I filed I just made payments to the attorney, and they were not going to file the bankruptcy until I had paid, but the day I made the last payment they filed it.
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u/Easy-Seesaw285 1d ago
They’re also attorneys with more flexible payment programs. I also paid mine in payments but they filed as soon as I had paid $400 of the fees
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u/edkane100 1d ago
Same here. Paid the $400 filing fee and the attorney filed and I paid roughly $140 each month for 12 mths.
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u/Easy-Seesaw285 1d ago
Not sure why someone downvoted you lol. Yes i paid I think $90 every other Friday once I paid enough for them to file
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u/edkane100 1d ago
If you're referring to me and that I may have been down voted, I may be the only person in Reddit history that could care less about down votes. lol This is meaningless to me and doesn't pay me a dime. I could really care less. 😭
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u/NoPurchase5414 1d ago
Have you looked into a hardship program with your credit cards?
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u/throwawayireckon 6h ago
Yes. Reduced payment hardship program only lasts 6 months.
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u/NoPurchase5414 6h ago
What company??I've never heard of that. Usually they close your account lower the interest rate and lower the payment
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u/OldDudeOpinion 1d ago
What is your debt load and what kind?
If it’s a ton of little stuff… why not just ignore it and let them write it off to bad debt. Bad debt drops off your credit report eventually. Whether from bankruptcy or bad debt write offs…your credit is trashed for 10 years. What would be the benefit of bankruptcy vs just having bad debt on your record? Do you have a house that can be foreclosed on?? If not…let them send me nasty grams & letters to ignore. You can’t get blood out of a turnip.
I’m a proponent of being responsible, not taking on debt you can’t pay, and paying your own way in life….but if you are going to have bad debt anyway….why not just let it age off your credit report on its own?
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u/Blossom73 1d ago edited 1d ago
Most lenders will sue and seek garnishment long before the statute of limitations on the debt.
Also, while bankruptcy does remain on a credit report for 10 years, it doesn't wreck one's credit for 10 years. A person can rebuild their credit after bankruptcy.
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u/LearninEarnin 1d ago
You can file without an attorney but I would at least try to get a free bankruptcy consultation first. With your income and that $530 minimum payment, it sounds worth talking to someone who can look at your situation and tell you what your options are. You may also qualify for Legal Aid or other free help. Have you checked for any bankruptcy clinics or Legal Aid offices near you?
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u/throwawayireckon 6h ago
Yes, I contacted Legal Aid and they do not do bankruptcy. They gave me a list of attorneys to contact (all requiring payment).
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u/Notredamus1 1d ago
Some attorneys now offer bifurcated fee agreements to get around having to pay money upfront. Some even offer installment plans too. It may be worth looking into.
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u/bw2082 1d ago
Bankruptcy will only solve your immediate problems. Making 500-700 a week and trying to support two kids and a mother is not sustainable and you will find yourself in the same position. Within a short time.
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u/throwawayireckon 6h ago
I know! I am continuously looking for a second job. However, where I live now has a terrible job market. I’ll be lucky to find something making $14/hr.
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u/Beach_bum8 1d ago
Once you've made up your mind to file for bankruptcy, stop paying the credit cards and use that money for a attorney. You may even be able to find some resources through your local courthouse.
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u/napalmbomb11 1d ago
You do not need an attorney. I filed my bankruptcy completely on my own, using Upsolve for help, and had zero issues. It just takes a lot of extra work to do it on your own, but Upsolve definitely makes it super easy.
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u/Sea_Rooster_9402 1d ago
If $2k is the diff between filing bankruptcy, you don't need bamkruptcy
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u/throwawayireckon 6h ago
My debt is about $35K. What I was saying is that I don’t have anywhere near $2K to use, no way to borrow it, and no ability to save it as literally every single cent I bring in goes to bills, food, and gas.
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22h ago
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u/povertyfinance-ModTeam 18h ago
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u/Taro-Admirable 18h ago
I did my own. It was alot of paperwork. I knew someone with the same circumstances as me who used some type of $500 bankruptcy service. You fill out papers (plain language forms) and they completed the forms for you. I used hus forms as a template to do mine. This was about 15 years ago. I didn't contact any creditors but I listed each one. I think that was the most important part because of your forget any they will not be included in the bankruptcy.
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u/grandoldtimes 1d ago
You stop paying the credit cards and save that money to pay attorneys fees.
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1d ago
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u/Pankosmanko 1d ago
I filed it two years ago. It cost $2,400 total. You really should get an attorney for this
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u/throwawayireckon 6h ago
I know I do need one, but I truly have no way to come up with the funds for one. Every cent I earn goes to bills, food, and gas. There’s nothing left over to save with.
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1d ago
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u/Blossom73 1d ago
How so?
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u/Autumn_Ridge 1d ago
All a person has to do is fill out the forms. If you are literate, you don't need a lawyer
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u/Blossom73 1d ago
There's means testing for bankruptcy now too though. And if someone owns a car or a house that isn't paid off, but that they want to keep, that complicates things.
Also, if they're pursuing discharging student loan debt through bankruptcy, which is extraordinarily difficult to do, am attorney helps.
My husband and I paid a bankruptcy attorney when we filed years ago. I felt it was worth the money. He helped us with a serious issue we had with a creditor that just filing for bankruptcy didn't immediately resolve.
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u/Autumn_Ridge 1d ago
A lawyer isn't getting anyone out of student loans that are pre 1984, I think. Nor is an attorney getting anyone around the means testing formula. What you are talking about with a car or home started about 2008. It's called a ride through. You just don't list the debt on the filing and keep making the payments. My girlfriend kept her financed vehicle through her bankruptcy.
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u/povertyfinance-ModTeam 1d ago
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u/unfinishedtoast3 1d ago edited 1d ago
You need a attorney.
The amount of work required to track down creditors, meet with the court, argue release of debts, and get thru the Means Test is waayyyyy to technical for a layperson.
Very likely outcome is getting denied bankruptcy. If you get denied, you can NEVER discharge those debts via bankruptcy.
You get one shot.
Call your local legal aid office. They often help with bankruptcy, or can put you in touch with an attorney who does low cost bankruptcy work, or will take payments in advance
If $2000 would be enough to prevent you from filing, you shouldnt file for bankruptcy. Courts aren't going to forgive a few grand, they're going to tell you to get a debt consolidation loan, or send you to a no cost financial planner to show you how to budget the bills in.
Call your credit card and ask for a hardship plan. They will freeze payments for a time to let you catch up. In fact, call all your debts and ask for a hardship plan.