So you’ve decided to file for bankruptcy and you can’t afford the expense to file for it. The question is then often asked if you can file for bankruptcy for free. We will be discussing the possibilities and the process involved of going about filing for bankruptcy.

Filing for bankruptcy can be a very expensive process. There are three main costs involved. First there are the the attorney fees, next the court costs and filing fees, and last there are the credit counseling classes.

There are new laws that require you to go to credit and financial management classes to help you to avoid filing altogether. These cost about $60. It is possible to get the classes free of charge but it is difficult process. The filing fess cost about $300 but it is the attorney fees that are the most expensive. You may be able to get legal services for free. To see if you qualify for free or pro bono legal services you should contact your local bar association. There are legal clinics that offer these services and you can find information about them on court websites.

It is possible to file for bankruptcy for free. The forms for filing for free are available online from the bankruptcy court in your district. There is a procedure in the bankruptcy code that allows the debtor to ask for bankruptcy filing fee to be waived.

There are several criteria that will determine if you can file for free. They are based on how bad your financial position is. You will have to submit every bank statement you have along with any other documents regarding your monthly expenses. It will take a lot of perseverance and you may still not get granted the waiver.

Bankruptcy is a complicated procedure involving both state and federal laws. It is not advisable to file for bankruptcy for free because it may cost more to fix the procedure than to initially pay for legal advice and retain a lawyer during the process. The process is very technical and if you miss a crucial step you may affect your rights.

Bankruptcy cannot be erased from your credit report. If you see services that offer this, they are almost always illegal services and should be avoided at all costs. The best thing to do is build up a new credit rating from scratch.

It is always recommended that you use a lawyer to assist you through the process. The process involved of filing for free takes a lot of time and administration, but can you file for bankruptcy for free? Yes it is possible, but not recommended.

This is the third installment in our bankruptcy series. Be sure to check back for updates…

If you are deep in debt and you need to know how to negotiate with credit card companies, then you should read this article. Specifically we will be discussing how to correctly go about negotiating for the most beneficial outcome.

There are two scenarios at play. First you are managing to make your payments every month but it’s an uphill battle, or you can’t make your payments at all.

So how do you negotiate with credit card companies to reduce your monthly payments? Well you could ask for a lower interest rate. If you have been making payments on time this option might be available to you. It depends on whether you have been keeping up payments every month and what your current balance is. You need to phone your bank and speak to someone who has a higher position than a customer service agent as they will not be able to help you and will probably just say that it isn’t possible when it is. Speak to the branch manager or someone in loss mitigation and ask if they will lower your interest rate. The easiest way of getting a lower rate is to tell them that you have been offered a lower rate elsewhere.

The second scenario is when you can’t pay your payments at all. If you are late on payment and especially if you are three months behind or more you may be able to negotiate a deal. If you cannot pay off your balance they have the option of handing over your debt to a collection agency but this takes a lot of time and costs them a lot of money. The next option is that they will accept a portion of the debt from you and they will write the rest off. This option comes with a downside as this will show up and your credit history and report, however it may be your only option. You have negotiating power because you can either pay off a certain amount or nothing. They are surely going to accept the offer of a sum of money as opposed to nothing.

Continuing onward, these are the steps you need to carry out next. First, begin by calculating the exact amount you can pay. Once you have worked this out and you have an offer phone up the bank and again ask for either the branch manager or someone in loss mitigation. Always record the information of the person you spoke to, the time and day that you spoke to them, the exact telephone number that you dialed, and the outcome of the call. You need to keep on trying as the answers you may get will not be in line with each other. It would also be a good idea if you could make an appointment to go into the bank and speak to someone who could help you.

Negotiating with the credit card companies will be a difficult process but once an offer has been accepted it is very important that you get it in writing. Now you know how to negotiate with credit card companies.

This is the eighth installment in our credit & debt series. Be sure to check back for updates…