Chapter 7 & Bankruptcy WITHOUT an Attorney

Have you ever heard of debt shield? My sister did this. They work out a payment plan with the creditors (hers were credit card companies). They get the interest rate lowered, & then you pay them. Then, the creditors cannot call, if they do, you call your rep, & they call them. It worked out so well for them, & a friend of hers, who also had debt from an ex-husband. They had years topay, & if they could not, they called up &put them on hol, but they work out another payment amount. It was a lifesaver for them.

M.,

My husband did this also before we married. We couldn't afford the attorney fees either but he did use paralegals! He paid between $100-$200 and that was split into 2 payments which did have to made before it was final. Mostly what he was paying for was the court fees. Do some checking into this and I hope it is not all different now as it has been a few years since he did this. I do know things have changed with filing bankruptcy but maybe a paralegal service can help you like they did my hubby!

Good luck and hang in there! I know how it is about the phone ringing and calling every hour until you answer - how annoying!!! Then they always want me to give them a post-dated check - which I always tell them it is against the law to do that!! That shuts them up about it pretty quick!!!

M. - you can tell the creditors/debt collectors that under the "Fair Debt Collection Practices Act" you request that they only contact you in writing via mail.

You should be able to file for a chapter 7 by yourself - you just need the forms and the filing fee. (I filed a few years ago, and the laws were a little different - but you still should be able to do it).

I know how stressful it is. Good luck.

I'm so proud of you for deciding to get control of your finances. It will bring you such great peace of mind, which is much more valuable than any material things. Dave Ramsey is a financial guru who offers sound, solid advice (he's been there, done that--he filed bankruptcy years ago and now he doesn't have any debt whatsoever, not even a mortgage). Check out www.daveramsey.com He has a radio talk show on 1310 am in the afternoons here in the Phoenix area that I LOVE. He celebrates becoming debt-free and answers financial questions. He has a cash-only envelope system set up to help people stick to their budgets. I love the entry to his show where they say, "The show where a paid-off mortgage replaces a BMW as the status symbol of choice."

I know this is an extremely uncomfortable position to be in, but I would like quote Suze Orman:
"It's always best to try and work out your financial problems without turning to bankruptcy." Many bill collectors are happy to get anything at all out of you, so many will work with you and forgive part of your debt and take payments (I know because we had many bill collectors calling my house when I was a teen but my parents couldn't file bankruptcy because they already had a few years earlier). I'm sure you can find free financial counseling that would help. Is there any expenses you can cut out? My mother-in-law has many unpaid debts that will most likely never be paid, and it is hard for me to watch her buy new clothes and get cable TV or join the gym or go on vacation when she owes people money. It's a matter of integrity and I think one should pay people they owe before spending frivolous money (I'm not saying you are--but in case you are you may want to take a good hard look at your spending habits. And even if you do file bankruptcy it is a good idea to take a good hard look your finances and spending and prevent this situation from occurring again). Good luck. I wish you the best!

More than anything, it just takes great discipline. The little things do add up. Track your spending and expenses for a couple months and you'll most likely be surprised how much money is wasted (I was!) and you will see where you can cut back to save more. Making a budget and sticking with it is helpful.

I'm going through the phone calls too. When it gets too annoying, I just unplug my phone. I then check my messages at my convenience. Sometimes at the colleges, MCC or ASU, they have programs that help people, the legal students need the practice. I'm sure you'll feel lots better when you can just start over again!

I had a friend who went through bankruptcy recently. I think her fees were about what you were quoted. She was able to pay $100/month until the lawyer was paid up and then started the process. Once she retained a lawyer all she had to do was give the creditors the lawyers info and the calls stopped. I can find out who she went thru if you are interested.