The personal bankruptcy process is all about eliminating debt that has caused your financial life to spin out of control. Unlike most other debt relief options, filing bankruptcy is a way to completely eliminate large portions of accumulated debt, and it can also be an effective way to get harassing creditors off your back. Although claiming bankruptcy can be extremely effective in some cases, filing a claim does come at a cost. In fact, the filing process alone costs about $300. Add in an attorney and you should expect to pay an additional $1,000 to $2,000. Such steep costs cause many potential bankruptcy candidates to shy away from the process, and others to look for cheaper ways to file.

Fortunately, there are some ways to save money on your bankruptcy claim, though there are some important things to consider before signing up with a cheap bankruptcy attorney or some shady online financial rescue company. You should also keep in mind that most attorneys are in the business of making money, which only happens when they successfully see people through the bankruptcy process. Because of this, you want to find an attorney that will thoroughly explain the pros and cons of filing so that you can properly evaluate the decision for yourself.

Two Ways To Save

While there are a number of ways to save money on your bankruptcy claim, perhaps the two most common ways are through the use of a discount bankruptcy attorney or a bankruptcy petition preparer. It’s important to know the difference between these two entities, as they each offer something slightly different.

Although not required by law, a bankruptcy attorney can offer many advantages when it comes to filing a claim. For one, an attorney can help you with the time consuming process of preparing and submitting documents. As part of the process, you will be required to collect detailed information related to your finances, and it’s important that the information you provide is as accurate as possible. After all, it will be used to determine your filing eligibility. While bankruptcy attorney fees can be prohibitive for many individuals, you can often save a great deal of money by using a cheap bankruptcy lawyer. Cheap bankruptcy lawyers offer many of the same services as “traditional” bankruptcy lawyers, but at a lower rate.

When shopping around for an attorney, it’s critical that you choose one who is able to completely explain the process. You should have a thorough understanding of what to expect before, during and after your claim before making a commitment to proceed. Before hiring an attorney it’s in your best interest to do some research on a handful of firms. Your goal is to choose a firm with a solid reputation for success and service.

Apart from hiring an attorney to see you through the bankruptcy process, you can also hire a bankruptcy petition preparer (BPP). This person can help you prepare and submit the paperwork that is required as part of the filing process. Although a BPP can’t legally offer advice or legal representation, having someone that can take care of the extensive paperwork process can be extremely helpful.

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