Here’s a scenario I see consistently.  A potential client calls me.  They qualify for a Chapter 7 bankruptcy.  They have no assets and want to file so they can start fresh.  The challenge is that they don't have the money to cover the legal and filing fees.  Though my fees are some of the lowest in town, the reality is that the client must come up with the money in order to file.  Sadly, many people decide not to file thinking they cannot afford it.

You can’t afford not to.  About a year ago, I talked with a potential client.  Because money was so tight, they decided to postpone filing.  A couple months back, they called me and told me they had been sued, gotten a default judgment against them, their wages had been garnished to the tune of $800 a month.  This is a classic scenario of what happens when you delay.  Realizing another few hundred more were about to be garnished, you can bet this client found a way to cover their bankruptcy fees.  Here, they relied on family for help.  Though they felt embarrassed to ask, their family was more than happy to help.  Their family told them had they asked sooner, they would have given them the money then too.  In this case, the client would have been $800 richer.

If you don’t have family to rely on, here are some other options:

• set aside money on a monthly basis;
• set up an installment plan with your attorney;
• sell an asset or assets;
• tap into your 401K or IRA,
• use your tax refund;
• borrow from your whole life insurance policy;
• temporarily decrease the amount of taxes that are taken out of your paycheck so you have extra pay;
• stop paying on your credit cards and set that money aside to cover the bankruptcy fees. 

All of these have upsides and downsides (e.g. tax implications as in the example of using retirement funds), so before you take any action, do brainstorm with your attorney.  I would be happy to discuss your options with you myself.  But remember this: where there’s a will, there’s a way.