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How to pay for a bankruptcy

On Behalf of | Feb 24, 2023 | Bankruptcy, Blog |

If you’re in way over your head with debts, bankruptcy might be your best option. While it may temporarily affect your credit, it could be worth it in the long term. But some people who want to file bankruptcy in Maryland might feel like it’s out of their reach simply because they don’t even have the money to file the paperwork. Fortunately, there are some ways that you can work around this problem.

Top ways to find the money for bankruptcy

Most bankruptcy attorneys offer free consultations, which can help you understand which kind of bankruptcy you need, when you should file it and how you should pay for it.

Your tax refund is a particularly simple place to get some extra money, and you can stop paying your unsecured debt. Secured debt is things like your home and car, which can be seized if you stop paying for them. Unsecured debt is things like credit card bills, which will be wiped out once your bankruptcy is finalized anyways.

You can ask family and friends to help you if you don’t have another option. Finally, now is also a good time to review your expenses because you need to understand what got you in this predicament in the first place.

How to escape debt for good

Constantly owing money to other people can be overwhelming, but there are some basic steps that you should take to ensure that you escape the debt cycle after a bankruptcy. First of all, it may be a good idea to make a list of all of your incoming money as well as all of your outgoing payments. Examine the money going out, and see if there are any bills that can be reduced or eliminated temporarily, such as subscription services. Then, you can make a budget with the goal of having a small monthly surplus that you can use to pay down debt.

If you’re struggling with your finances and need to declare bankruptcy, a comprehensive plan will put you in a better place once your bankruptcy is filed so that you can begin to rebuild your credit and be more financially stable in the future.