Dealing With Bankruptcy: Solutions When Funds are Limited
Bankruptcy is a serious financial situation that can befall anyone. Often, individuals who are facing bankruptcy are already in a dire financial state, and the cost of filing for bankruptcy may seem insurmountable. This article will explore the various options available if you find yourself asking, “What if I can’t afford to pay for a bankruptcy?”
1. Understanding Bankruptcy
Before we delve into the options available, it is important to understand what bankruptcy entails. Bankruptcy is a legal process that allows individuals or businesses who are unable to pay their debts to seek relief from some or all their debts.
2. The Cost of Bankruptcy
The cost of filing for bankruptcy differs based on various factors including your location, the complexity of your case, and the type of bankruptcy you are filing for.
3. The Dilemma: Can’t Afford to Pay For a Bankruptcy
The irony of bankruptcy is that it costs money to declare that you have no money. This often leaves individuals in a catch-22 situation, where they can’t afford to pay their debts, neither can they afford to declare bankruptcy.
4. Option One: Do Nothing
If you are unemployed, on assistance, or don’t own any valuable assets that creditors can seize, you may be ‘judgment proof’ or ‘creditor proof’. This means that the creditors can’t seize your benefits or assets to pay off the debt.
5. Handling Collection Calls
Even if you are ‘creditor proof’, you may still receive collection calls from the creditors. It is important to know your rights when dealing with these calls.
6. Option Two: Bankruptcy Referral Program
The Superintendent of Bankruptcy offers a Bankruptcy Referral Program for individuals who are unable to afford the cost of bankruptcy.
7. Option Three: Assistance from Family Members
Another avenue to explore is seeking help from family members. They may be able to help you cover the cost of the bankruptcy process.
8. Consult a Trustee
It is advisable to consult a trustee to get advice tailor-made to your specific situation. They can help you understand the implications of each option and guide you through the process.
9. Final Words
Bankruptcy is a tough situation to be in, and the financial strain can make it even tougher. However, there are options available even if you can’t afford to pay for a bankruptcy.
10. Contact Information
For further information or if you have any questions, please do not hesitate to contact us.
