Too Broke to file??!!

[LeslieF]

I own a small retail business and am looking at filing a chapter 7. The recession has sucked the life out of the business and every single dime. Many friends and family members have helped me up to this point and I really do not feel comfortable borrowing money from them to file. It is not that expensive really, but I am destitute. Any creative suggestions for coming up with the cash for my attorney so that I can get the ball rolling? I am talking about $2500-3500 all said.

[bakergrl]

A lot of people just stop paying their unsecured debt and then save up the payments for them until you have enough to file.

[funcritter]

I used my tax refund check to file with.

[OregonMom]

My lawyer let me retain their services for $50 and then I made payments. Stop paying all unsecured debt and send it to the lawyer.

[fireworks]

I was in a similar situation. I interviewed two attorneys, both told me I'd have to close the store (which was in the plan anyway since it was losing money). I had a store closing sale and used those funds to pay my attorney and live on until I found a job.

[mtngirl47]

Don't rush into anything...take the great advice on this forum and plan out the bankruptcy. Stop paying the credit cards and any other unsecured debt. Make sure you have shelter, food, transportation, and communication --phone and internet.

Sell what you can...try Ebay to liquidate your inventory. You'll have a lot of exposure on Ebay and somebody, somewhere wants what you have--new or used. Clean out your closets, attic and garage and sell more stuff. Have a garage sale for the big stuff that's hard to ship. (keep records of what you sell--you'll need it for the bankruptcy.) If you're giving up your store, take pictures of your fixtures and equipment (if they're not financed) and make a flyer--email or mail it to your chamber of commerce members.

Take advantage of free consultations with several attorneys. Move your money to a bank that you don't owe *anything* to. I had to change my credit card processing service for my business and that took about 10 days to accomplish--my credit was going down fast and those companies all want to look at your credit for processing.

Treat it like a business decision. My stress level went waaayyy down when I made a plan and started working it.

[LeslieF]

mtn girl: great advice. thank you SO much. my stress level has already gone way down since making this decision last week. i truly feel like my life at 48 is completely starting over. thanks again!

[junker]

if yours is not tooo complicated...get a nolo book...and see if its feasible to file on your own....

[LeslieF]

really do not feel comfortable filing on my own. it is fairly simple but because of my business and ex husband i dont want to screw things up. love the advice though. hopefully i can get the money together as soon as possible.