Bankruptcy Costs Limit Access

According to an article published in Pro Publica, a consumer's inability to pay attorneys' fees prevents many consumers from filing for bankruptcy. This phenomenon has spawned considerable debate about the appropriate "fix", but no good solution stands out. Some argue for changes to the law to facilitate post-petition installment payments in chapter 7 and/or to streamline the filing process and thus reduce the cost, while others argue debtors should not be able to file until they have saved enough for the fees.

Most would agree a legislative solution is not feasible at this time (how about a tax credit so that consumers could use tax savings to pay the fee), and thus debtors and bankruptcy lawyers will continue to work together to find acceptable alternatives in the meantime.