When declaring for bankruptcy, there will be a few additional expenses that come into play on top of repaying your basic debts. These include filing fees, bankruptcy attorney fees, and possibly credit counseling or financial management courses. In some cases, debtors struggle to obtain these funds while declaring for bankruptcy.
At Utah Bankruptcy, we’re here to help with this kind of bankruptcy debt relief. Here are a few options that may be at your disposal to help you free up funds for these kinds of expenses if you’re considering declaring bankruptcy.
Tax Refunds
Any tax refunds you receive prior to filing for bankruptcy can be used here. If you wait to spend a tax refund, this can be considered part of your bankruptcy estate and can be used to pay off creditors while leaving other money available for fees. Refunds can also help you receive exemptions or can go toward filing or attorney fees themselves.
Consumer Protection Actions
This is an area that may allow you to receive additional funds if your rights have been violated by creditors who were unable to follow the Fair Debt Collection Practices Act (FDCPA). Under this act, there are certain tactics that are off-limits to creditors when it comes to attempting to collect from consumers – these include excessive phone calls and various types of harassment. A successful claim here can net you as much as $1,000, plus other damages and potentially your attorney fees covered.
Credit Card Payments
If you plan to file for bankruptcy, it’s good to stop using your credit cards so you don’t create any new debt or attract attention from creditors. Limiting credit use helps free up additional funds for fees and other bankruptcy-related expenses.
Managing Expenses
While this can be tough as you’re preparing to file for bankruptcy, every dollar you can save on your basic expenses can be meaningful. Look at areas where you can cut costs, even in minor ways. A few bits of savings here and there will add up over time, and these can prove the difference when it comes time to file. These can also go a long way toward rebuilding your credit after filing.
For more on how to handle fees and other bankruptcy-related expenses, or to learn about any of our other bankruptcy attorney services, contact Utah Bankruptcy today.
