How do you file for bankruptcy?

How can I file bankruptcy living paycheck to paycheck?

• I have felt out every possible means of debt consolidation and elimination and still my best option is bankruptcy. This is not a question of IF I should file, but HOW. I literally barely make it week by week as it is but I am now forced to either file or be sued for the full amount. What are some options so that I may pay a bankruptcy lawyer to file for me?

• Answer:

  If you're living paycheck to paycheck (then you have a job) then if you file for chapter 7 the judge will send you into mediation and make you do a chapter 13 instead. Calling CredAbility (a free government program who lops off interest and sets up a repayment plan for you) would be your better bet than going bankrupt. A bankruptcy will hurt you for 10 years. and you should only file for bankruptcy if you owe over $65,000 and have huge piles of medical bills, which doesn't sound like you so doing a bankruptcy in my opinion would be a mistake. When collectors are calling you after three tries they are supposed to return that to the creditor who will then take you to court. When you are called into court you could say you are now going thru CredAbility (they're online also, set an appointment in your area) and the judge will put it on hold until you can make a payment plan with CredAbility or with the creditor. Otherwise they will file a judgment agaisnt you and coudl garnish your wages, could put a lien on anything you own like a home or a car or boat or truck or on your tax refunds. The judgment will continue to add interest plus you'd have to pay their attorneys fees and court costs. So it's a lot better if you went thru CredAbility. On the other hand if you decide to go the way of a Chapter 13 initially then your attorney would add his bill and you'd make payments on it thru your trustee. But again, if you can do without bankruptcy then do it. There are other ways to cut your expenses, like cut your electric bill (don't use the stove, the laundromat or washer or dryer or dishwasher), rent more inexpensively, get a used car instead of a newer one, ask if there's a way you can lower your car insurance, don't go out to eat instead eat inexpensively at home (maybe $70 a month for groceries), you can sell something you own, you can get a second job or teach something you know. You can fix your car yourself. You can lump all your tasks into one trip or do grocery shopping on the way home) you could brown bag lunch. You could stop dating for a while (treating someone to dinner or buying gifts for them or your family). Lots of things you can do.