If you don’t have the money to file a bankruptcy upfront you may need to file a Zero no money down Bankruptcy.  Debtors sometimes need the bankruptcy filed now.  Its an emergency.  Your paycheck is garnished, the creditors emptied the bank account,  the home sells in a couple of days.   What do you do?  You need one of the best attorneys to do it, not the cheapest in town.  Zero no money down Bankruptcy can solve that and pay for it.

Zero no money down Bankruptcy

Zero no money down Bankruptcy

This is important.  If you do the bankruptcy wrong, it will cost you time, money, or property.  You need it done right.  But if you don’t have $1535-$2000 upfront how do you pay for it?  There are zero-down bankruptcy cases and attorneys.   This is how no money down Chapter 7 Bankruptcy cases work.

No money down Chapter 7 Bankruptcy cases

There are two ways to do a zero down bankruptcy.  In Chapter 7, you can file a skeleton petition which is just a few pages listing only your name and address.  The moment those four pages are filled, the stay goes into effect to protect you.  Collections stop, garnishments stop,  banks release funds.   You must still get the complete bankruptcy petition filed 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. The remaining schedules are prepared and filed within the next day or so.

You only have days after this skeleton petition is filed to complete the 40-80 page petition, with supporting documents and complete the filing.  People who try to do this themselves have the case thrown out over 90% of the time in California.   If you fail, you can lose property, have the case dismissed, and perhaps not be able to refile at all.  Make a mistake and you go right back to being foreclosed, garnished 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.  Tell them you want our office to do your bankruptcy.

Zero down Chapter 13 Bankruptcy cases

You can also file a Chapter 13. 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.  Just about the only person who would be repaid in a low payment Chapter 13 would be the attorney.  People who earn less than the average income can have a 36 month Chapter 13 Bankruptcy.  But the payment has to be all you can afford.

If necessary you can even make payments on the filing fee but we don’t suggest it.  This causes the judge and the clerks extra work.  The benefits of low monthly payment Chapter 13 include:

  1. A credit score can improve while you are in the bankruptcy some of our clients have gotten scores back up to 720 after being in the bankruptcy for a year.
  2. You can buy a home while you are in bankruptcy if you make payments on time for at least a year.
  3. Debtors don’t lose property in Chapter 13.
  4. You can also dismiss the case if you can’t make the payments
  5. Chapter 13 cases can be coverted to a Chapter 7 later. Often people who have medical debts after filing may dismiss the case and refile or convert to a Chapter 7.  The new debts are then discharged.

Zero no money down Bankruptcy Advantages

The Advantage of both methods is you can get the case filed immediately with no money down.  If you have a foreclosure, bank or wage garnishment, you need the case filed immediately.  If your home is listed for foreclosure next week, you do not have time to save up over weeks or months.   You need help immediately.  If it costs a couple of hundred dollars more, you can’t afford to lose thousands.

We do suggest that you use the best qualified and experienced attorney you can get.  You are in federal court and this is important. Don’t buy his advertising.  Buy his skills and the time he spends on your case.  If the attorney does 100 cases a month and spends on advertising, you won’t see him.  You are often handed off to someone who does not have a law degree to prepare the petition and a junior or less experienced attorney appears at court.

Zero no money down Bankruptcy Disadvantages.

The Disadvantage of a zero money down Chapter 7 bankruptcy is the cost.  The attorney fees are financed in zero money down Chapter 7 case you apply for a loan before the bankruptcy is filed.  The attorney is paid the day after the case files by the factoring or finance company.  He performs all of the work after the case files.  You could have simply not paid creditors before you filed and waited until you saved up the money.   You could have taken out a loan before you filed at perhaps a lower rate.

I like Chapter 13 cases.  You can always convert the Chapter 13 to a Chapter 7 if you need to.  If you have more debts over the next three years, you can simply convert and wipe out the new debts.  Chapter 13 cases can have early discharges.  You can include a car loan and often get a lower interest rate.

The Disadvantage of Chapter 13 is your case won’t be over until three years of payments not just four to six months.  In the Western District of Kentucky, Chapter 13, cases have to file an annual budget.  Debtors lose their income tax refunds every year in the Western District.  You may want to increase your tax deductions so you don’t get a refund.  Then you will get this money during the year and you don’t lose any tax refund.  In the Eastern District, you generally keep your tax refund.   We do cases in both the Eastern and Western Kentucky districts.

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