If you don’t have the money to file a bankruptcy upfront you might need to file a Zero No Money Down Bankruptcy. The thing is, debtors sometimes need to file bankruptcy immediately. It’s an emergency because your paycheck is garnished, the creditors emptied the bank account, or your home sells in a few days. Now, what do you do? First, you need one of the best attorneys to do it. Secondly, a Zero No Money Down Bankruptcy solves that and pays for it.
Zero no money down Bankruptcy
This is important because if you do the bankruptcy wrong, it costs you time, money, or property. So, you must get it done right. But, if you don’t have $1535-$2000 upfront how do you pay for it? Your answer might just be a Zero No Money Down Bankruptcy. If this interests you, continue reading to learn how the Zero No Money Down Bankruptcy Chapter 7 Bankruptcy filing might work for you.
No Money Down Chapter 7 Bankruptcy Cases
There are two ways to do a Zero Down Bankruptcy. In Chapter 7, you file a skeleton petition which is just a few pages listing only your name and address. The moment those four pages are filed, the stay goes into effect to protect you. Collections stop, garnishments stop, and the banks release funds. However, you must still perform the bankruptcy petition filing within just a couple of days. This is why you still need to get the documents to the attorney before you file the skeleton petition. You also must still take the credit counseling class before the case is filed. Then, the preparation and filing of the remaining schedules take place within the next day or so.
You only have days after this skeleton petition filing to complete the 40-80 page petition along with supporting documents. One example is California where people who try to do this themselves have the case thrown out over 90% of the time. The problem is, if you fail, you might lose property, have the case dismissed, and perhaps not be able to refile at all. Make a mistake and you go right back to into foreclosure, garnishments, or losing funds from the bank. If you want to finance your Chapter 7 Bankruptcy and you don’t mind a higher rate for the financing here is fresh start funding. When you call them, please be sure to tell them you want our office to do your bankruptcy.
Zero Down Chapter 13 Bankruptcy Cases
Filing a Zero Down Chapter 13 is also an option. If you are too poor to repay your creditors, you can file a Chapter 13 bankruptcy and have a very minor $100.00 per month or so payment – if that is all you can afford. About the only person who is repaid in a low payment Chapter 13 is the attorney. Additionally, for people who earn less than the average income, there is a 36-month Chapter 13 Bankruptcy. However, you must qualify the payment as being all you can afford.
If necessary you can even make payments on the filing fee but we don’t suggest it because it causes the judge and the clerks extra work. The benefits of low monthly payment Chapter 13 include the following:
Your credit score improves while you are in Bankruptcy. For instance, after a year, some of our clients get their scores back up to 720.
It’s also possible to buy a home while you are in Bankruptcy if you make payments on time for at least one year.
Debtors don’t lose property in Chapter 13.
If you can’t make the payments, the case might be dismissed.
Chapter 13 cases convert to Chapter 7 cases later. Often people who have medical debts after filing may dismiss the case and refile or convert to Chapter 7 where the new debts are then discharged.
Zero No Money Down Bankruptcy Advantages
The advantage of both methods is the case filing happens immediately with no money down. This is important because if you have a foreclosure, bank, or wage garnishment, you must file immediately. Additionally, if your home lists for foreclosure next week, you don’t have time to save up over weeks or months. Even if it costs a couple of hundred dollars more, you don’t want to lose thousands. Instead, you need help immediately.
We strongly suggest that you use the attorney with the best possible qualifications and experience. After all, you are in federal court so this is very important. Don’t buy anybody’s advertising. Instead, look for experience and the time an attorney is willing to spend with you on your case. If the attorney spends a lot of time on advertising and does 100 cases a month, you won’t see that attorney. Instead, you find yourself handed off to someone who might not have a law degree to prepare the petition. Additionally, you might end up with a junior attorney or one without the experience you need.
Zero No Money Down Bankruptcy Disadvantages
The Disadvantage of a Zero Money Down Chapter 7 Bankruptcy is the cost. First, the attorney fees are financed by the Zero Money Down Chapter 7, so you must apply for a loan before your Bankruptcy filing. Then, the day after filing the case, the attorney is paid by the factoring or finance company. So, the attorney performs the necessary work after the case filing.
Conversely, you might simply not pay your creditors and wait until you save the right amount for filing. Or, before you file, you might take out a loan at a lower interest rate.
However, I like Chapter 13 cases because Chapter 13 easily converts to Chapter 7 when necessary. Then, if you have more debts over the next three years, you simply convert and wipe out the new debts. Chapter 13 cases might also have early discharges. For instance, you might include a car loan and get a lower interest rate.
The disadvantage of Chapter 13 is your case won’t be over until after three years of payments rather than four to six months. In the Western District of Kentucky, Chapter 13 cases must also file an annual budget.
Additionally, in the Western District, debtors often lose their income tax refunds. To avoid this, try increasing your tax deductions so you don’t get a refund. Doing so gets this money to you during the year so that don’t lose your tax refund. On the other hand, in the Eastern District, you generally keep your tax refund. We do cases in both the Eastern and Western Kentucky districts.