Hi Steve, Ive been to my second lawyer yesterday to seek advice on doing bankruptcy. He was very informative and knew his stuff. He suggested a chapter 13 that would leave me with everything and possible payments of $100 a month or less for 3 yrs. I could get rid of my now $67k in credit card debt and my second mortgage of $25k, not a bad deal. The problem is it would cost me $3500 for the whole thing.
Should I take money from my 401k to pay the lawyer? I only have $1400 I can access, and a hardship withdrawal does not allow for my situation.
Paying for bankruptcy is a perpetual problem. Some lawyers actually offer a payment plan that allows for you to make payments for their fee.
Otherwise I think you’ll need to do what you need to do to get what cash you can to put this behind you and move on. Hopefully between what you can get your hands on and a potential payment plan from the bankruptcy attorney you can get this moving forward.