Bankruptcy is a good option for many Oklahomans struggling with overwhelming debt, but some debtors just don’t have the funds necessary to seek bankruptcy protection from the court. Under these circumstances, the debtor may consider taking out a personal loan to cover bankruptcy expenses in hopes that that debt too, can be discharged in bankruptcy. However, there are a number of factors that need to be considered should you choose to take this route. If you are considering filing for bankruptcy in Oklahoma, your first course of action should be to contact our reputable attorneys at Oklahoma Legal Center for legal guidance. With our experienced lawyers on your side, you can consider all of your bankruptcy options and make the best decision for your individual financial situation.
Alternatives to Taking Out a Loan
First, yes, you may borrow money from a creditor and use the funds to pay for a bankruptcy attorney, but there is a question of ethics here that must be considered. Bankruptcy is considered a means of eliminating overwhelming debt that you are unable to repay after exhausting all attempts to do so. If you take out a personal loan to cover the cost of filing for bankruptcy, you will be obligated to include the company on your list of creditors, and you must consider whether or not it is ethical to borrow money knowing you have no intention of paying it back. That being said, you should only consider taking out a loan after you have considered the following alternatives:
- Determine whether or not your bankruptcy attorney accepts monthly payments
- Borrow money from friends or family to help pay for attorney’s fees
- Try borrowing money from a retirement account or 401(k)
- Apply for a temporary, part-time job to save up the money needed
Consult Our Attorneys for Bankruptcy Help
If none of these options will work for you and you need to take out a loan, keep in mind that, ethics aside, the creditor may challenge your right to discharge the debt in bankruptcy, requiring you to pay it back. In fact, there is a provision in the bankruptcy code that prevents you from discharging any debts incurred in the 90 days prior to filing for bankruptcy, which would include the personal loan. It is situations like this that illustrate the importance of enlisting the help of a qualified attorney when filing for bankruptcy in Oklahoma. With our knowledgeable lawyers at Oklahoma Legal Center on your side, you can discharge or reorganize your overwhelming debt and start fresh with a blank slate.