It’s one of the most common — and most frustrating — questions people ask:

“If I’m filing bankruptcy because I’m broke… how am I supposed to afford a lawyer?”

It feels like a catch-22. You need help because you’re drowning in debt, but hiring an attorney costs money. Here’s what you need to know.

First: Not All Bankruptcies Cost the Same

The cost depends on the type of bankruptcy you file.

Chapter 7 (liquidation) is typically less expensive and is designed for people with limited income and overwhelming unsecured debt like credit cards, medical bills, or personal loans.

Chapter 13 (repayment plan) usually costs more overall, but part of the attorney’s fees can often be included in your repayment plan and paid over time.

That difference matters.

Why Most Chapter 7 Lawyers Require Payment Upfront

In Chapter 7, your debts are wiped out. That includes money you owe your attorney.

Because of that, most bankruptcy attorneys must be paid before the case is filed. Once your case is filed, they legally cannot collect fees from you for pre-filing work.

It’s not about being unsympathetic — it’s about how bankruptcy law works.

How Do People Actually Afford It?

Here’s how many clients make it work:

1. Payment Plans Before Filing
Many firms allow you to make installment payments before filing your case. Once the fee is paid in full, your case is filed.

2. Using Tax Refunds
Some clients use a tax refund to pay for bankruptcy. Timing matters here, so talk to an attorney before spending or filing.

3. Stopping Minimum Credit Card Payments
If you’ve already decided to file, continuing to throw money at credit cards often just delays the inevitable. Some clients redirect those funds toward their bankruptcy fee instead. (This should always be discussed with an attorney first.)

4. Borrowing from Family
It’s common for family members to help someone get a financial reset. If this happens, it must be disclosed properly in the bankruptcy paperwork.

5. Chapter 13 Option
If upfront fees are the biggest obstacle, Chapter 13 may allow you to pay a portion of the attorney’s fees through your court-approved repayment plan.

The Bigger Question: What Is It Costing You Not to File?

Wage garnishments.
Bank levies.
Collection lawsuits.
Stress.
Sleepless nights.

Sometimes the cost of waiting is far greater than the attorney’s fee.

Bankruptcy exists to give honest people a fresh start. It’s not a moral failure — it’s a legal tool.

The Most Important Step

Before assuming you “can’t afford” bankruptcy, schedule a consultation. Many bankruptcy attorneys offer free consultations and can walk you through realistic options based on your income and debt.

You may have more choices than you think.

If you’re struggling with debt and don’t know where to turn, don’t wait. The sooner you understand your options, the sooner you can start rebuilding.

📞 Contact our office today to schedule a consultation.