5 Ways to Pay for Lawyers without Money, For Those Who Are Bankrupt

 

 

Don’t people who went into bankruptcy in trouble with debt repayment wonder how they paid their lawyers fees?

The cost of personal bankruptcy is about 300,000 yen on average.

If you can not pay such a large amount of money, it is an amount of money that makes you uneasy.

Everyone is worried that they may not be able to pay for their own bankruptcy expenses, but more than 97% of those who filed bankruptcy in 2014 requested a lawyer or judicial scrivener.

※ See the 2014 Bankruptcy Case Record Survey

As you can see from this, most people who have no money and are bankrupt are paying lawyers in some way.

So, in this case, when there is no money, I explain in detail how to pay the bankruptcy expenses .

  1. Installment payment (postpay)
  2. Use of law terrace
  3. Convert property to money before bankruptcy proceedings
  4. Use the returned overpayment for expenses
  5. Do your own bankruptcy procedure

We will introduce these five methods mainly.

Which method is best for each person depending on the debt and property situation.

Find the method that works best for you and aim for a non-loss personal bankruptcy procedure.

table of contents

  • The cost of self bankruptcy is at least 300,000 yen! Depending on the person, it costs over 500,000 yen
  • Five Ways to Deal When You Can not Pay a Lawyer’s Fee for Your Own Bankruptcy
    • 1. Consult with a lawyer saying “I want to pay for personal bankruptcy attorneys in installments”
      • Example of payment when legal expenses are paid in installments
    • 2. Get legal fees that can not be paid using the “law terrace”
      • Examination standard to use legal terrace
      • Advantages and disadvantages of self-bankruptcy using the legal terrace
    • 3. Sell the property and pay the attorney’s fee before proceeding with bankruptcy
    • 4. Pay the attorney’s fee for personal bankruptcy with refunded overpayment
    • 5. Make a personal bankruptcy and save your lawyer
  • 【Conclusion】 If you can not pay a lawyer for bankruptcy, consult a lawyer for payment method.

The cost of self bankruptcy is at least 300,000 yen! Depending on the person, it costs over 500,000 yen

 

At first, the cost for personal bankruptcy was said to be 300,000 yen on average, but it may take more depending on the procedure.

There are three ways to go to bankruptcy, so let’s check.

  • Simultaneous abolition case

    When it is judged that there is no property enough to spend the expenses of 200,000 yen for personal bankruptcy.
    At the same time as the bankruptcy proceedings are initiated, it is called “simultaneous abolition” because the bankruptcy proceedings are abolished.

  • Small money case

    There is a property (house, land, car, etc.) that can spend ¥ 200,000 in bankruptcy procedure costs, and a person who needs to investigate the property, a person who promotes the bankruptcy using a lawyer as an agent.
    People who have a lawyer as an agent who may not be permitted to be exempted from bankruptcy, such as gambling, for reasons for debt.

  • Administration case

    Bankruptcy procedures mainly for corporations.
    Person who has the property that can spend procedure cost 200,000 yen by individual’s own bankruptcy and needs property inspection to pay out to creditors.
    Or, a person who needs to investigate whether self-bankruptcy may allow debt exemption (investigation of non-disclaimer).

If you would like to know more about the contents of the procedure for bankruptcy, please refer to the article “About the procedure for bankruptcy” .

The table below summarizes the market prices for these three methods.

procedure Average cost Cost breakdown
Simultaneous abolition case Around 300,000 yen Lawyer fee 300,000 yen Court fee 15,000 yen
Small money case Around 500,000 yen Lawyer costs 300,000 yen Prepaid money 200,000 yen Court fee 20,000 yen
Administration case Around 500,000 yen Prepayment money 500,000 yen …
Court fee 20,000 yen

With prepayment

The compensation paid to the bankruptcy trustee is referred to as the advance payment (both in advance payment can be paid separately in the Tokyo District Court). In the simultaneous abolition case, no advance payment is necessary because there is no need to investigate the property.

The details of the personal bankruptcy costs are summarized in the article “What is the total cost of personal bankruptcy?”

In this way, a person who has no money to return debt and no property must pay a lawyer fee of 300,000 yen as a simultaneous abolition case.

Also, even if you do not have property, if the cause of debt is gambling or excessive shopping (including stock and FX), it will be treated as a trustee case and it will require a minimum of 500,000 yen .

To be honest, even people who are not in debt can not pay 500,000 yen so easily.

It may be difficult to think about your own bankruptcy, even though you may not be able to pay for lawyers.

But as I mentioned at the beginning, 97% of those who have filed for bankruptcy have asked for a lawyer.

That means there is a way to pay for lawyers even if you are in trouble .

Next, I will introduce one by one how to pay the lawyer’s expenses for personal bankruptcy.

Five Ways to Deal When You Can not Pay a Lawyer’s Fee for Your Own Bankruptcy

Five Ways to Deal When You Can not Pay a Lawyer

If you can not pay the lawyer’s fees immediately for bankruptcy, there are the following five measures.

  1. Consult with a lawyer, “I want to make a separate payment of attorney’s expenses for personal bankruptcy”
  2. Get rid of the legal fees that can not be paid using the “law terrace”
  3. Sell ​​property and pay lawyer’s fee before proceeding with bankruptcy
  4. Pay attorney’s fees for personal bankruptcy with refunded overpayment
  5. Make your own bankruptcy and save your lawyer

Installment payments (postpay) is a payment method that can be made by anyone consulting a lawyer.

Other methods may be used if the conditions apply.

Then, I will explain what the legal expenses are paid in installments and what other terms of use.

If it applies to the condition, the lawyer’s expense may be reduced sharply.

1. Consult with a lawyer saying “I want to pay for personal bankruptcy attorneys in installments”

 

When you ask a lawyer for a procedure for personal bankruptcy, an average of ¥ 300,000 will be incurred.

However, the breakdown of attorneys’ fees is by each office.

There are two general cost settings:

  • Start fee 300,000 yen + actual cost
  • Start fee 200,000 yen + compensation fee 100,000 yen + actual cost

Start-up money is “the cost to pay for a lawyer to respond regardless of whether or not debt exemption is permitted in the personal bankruptcy procedure” and will not be refunded even if you dismiss the lawyer on the way .

Reward is the lawyer’s expense to pay depending on the degree of success.

Since the starting money is cheap, I asked for it, but after the debt has been exempted in the bankruptcy procedure, you may be required to pay a reward, so make sure to check if the reward is necessary when asking for it.

Furthermore, you may need court expenses, transportation expenses etc. which it took for procedure as the actual expenses.

Example of payment when legal expenses are paid in installments

Example of payment when legal expenses are paid in installments

Below is an example of an attorney’s fee of ¥ 300,000 for personal bankruptcy.

In the example, payment has not started for the period of consultation / request to the lawyer.

Then, let’s look at the following how the lawyer’s expenses (30,000 yen monthly) are generated after the request.

  1. Consultation / request to a lawyer
  2. Attorney sends a notice of acceptance to each creditor
  3. A creditor who receives a notification of acceptance ceases to require reminders by law
  4. When the reminder stops, the repayment also stops!
  5. Pay the lawyer’s expense for the repayment that has been stopped (The money spent on monthly repayment can be used for the attorney’s expense.)

In this way, asking a lawyer will stop the repayment and make it possible to pay the lawyer’s expenses in installments .

The method and amount of the split will vary depending on the required expenses and the income situation of the requested law firm and you.

First of all, it is good to ask a lawyer who is consulting for free, whether or not it is necessary to pay in installments, and how to pay according to you.

Namura Law Office handles both free consultation and installment payments.

If you give up asking to consult with a lawyer, “Because we can not pay for lawyers,” please consult with us once.

2. Get legal fees that can not be paid using the “law terrace”

 

If you are in the following situation, it may be difficult to split the attorney’s fee.

  • Even if it is installment payment, lawyer’s expense can not be paid
    • My income is very low
    • I have no income
  • The cause of debt became a trust case by gambling etc.
    • There is not enough money to spend bankruptcy proceedings
    • Prepayment (200,000-500,000 yen) can not pay

It is the Japan Legal Support Center Law Terrace established by the country that solves these legal problems.

In the legal terrace, if you have trouble in your life, “If you want to ask a lawyer, there is no lawyer who knows it” or “I can not afford to pay”, legal expert assistance or court fees I am helping.

The specific content of the support is as follows.

  • We can talk for free.
  • The legal terrace will recover the starting fee and cost for the lawyer.
    ※ Refunds can not be redeemed.
  • Monthly expenses of 5,000 yen to 10,000 yen are for the reimbursed expenses.

※ Law terrace is an organization as a window to introduce legal counsels etc. and to replace expenses and provide information about legal problems, and let’s use it after understanding that the law terrace itself does not correspond to legal consultation .

※ See) law terrace

It is attractive because the monthly repayment amount can be considerably reduced when repaying the lawyer’s fees that have been changed in this way.

By the way, it is only the lawyer’s expense that we can consult on the method terrace.

If you are not able to pay the advance payment, please refer to “Payment payment method and how to cope with it” .

Examination standard to use legal terrace

Examination standard to use legal terrace

The law terrace will help you to solve your debt trouble legally.

However, there are strict examinations to support legal fees by the legal terrace.

The examination has the standard of the income and the standard of the property, and it is not possible to receive the expense assistance if the two are not met.

Let’s introduce the two criteria in detail.

The ability (income) standard that expense support of legal terrace can use
  • Applicants’ and spouse’s amount of income from the income meets the standard.
  • The income of the family living with the applicant will be added to the applicant’s income as long as they can contribute to the household budget.

 

Property (property property) standard that cost support of legal terrace can use
  • If the applicant and spouse have assets such as real estate (excluding home) and securities, the total of the market value, cash and deposits and deposits must meet the standard.
  • If there are expenses such as medical expenses and education expenses to be paid in the future, a considerable amount will be deducted.

 

Those who meet these criteria may be able to receive cost assistance from the legal terrace.

Advantages and disadvantages of self-bankruptcy using the legal terrace

Advantages and disadvantages of self-bankruptcy using the legal terrace

In terms of attorneys’ fees for personal bankruptcy, there is a law terrace that offers great benefits, but there are also disadvantages.

Advantages and disadvantages of self-bankruptcy using the legal terrace
merit
  • If the conditions are met, the procedure fee will be replaced by a lawyer etc. and paid.
  • It can be used cheaper than the usual lawyer’s expenses.
  • Consultation on repayment according to the economic situation.
Demerit
  • The experts introduced from the law terrace are not necessarily the ones they can trust.
  • The legal terrace takes a very long time to use for review, and the bankruptcy proceedings are expected to be prolonged.

If you feel the disadvantage rather than the merit, ask a law office that you want to use instead of having a lawyer or judicial scrivener introduce you from the legal terrace, asking “Can you use the legal terrace?” please look.

Especially in the case of a large law firm, there is a possibility that a lawyer or a judicial scrivener who has a contract with the law terrace is enrolled, so let’s confirm if you decide to ask.

3. Sell the property and pay the attorney’s fee before proceeding with bankruptcy

 

Second, selling your property and paying for your own bankruptcy.

For example, you may be able to pay a lawyer’s fee if you possess the property corresponding to the following.

  • Funded insurance policy surrender value
  • Sale of owned cars
  • Other valuable items

If you have other assets that you feel are unnecessary for your post-bankruptcy life, you may be able to sell it and spend it on lawyers.

Well, if you sell your property before and after your own bankruptcy, is it not allowing debt relief? It seems that there are people who think that, but it is important what you used for the money you got from disposal.

In personal bankruptcy proceedings, if you dispose of a property of more than ¥ 200,000 in the two years before the application, you must declare it. ※ In the case of insurance surrender value, declaration is necessary regardless of the amount.

If it is determined that the disposition was done for the following purpose, there is a possibility that the debt exemption may not be permitted, or it may be a case for managing property, which was originally a simultaneous abolition case . .

  • Significantly reduced the property to pay out to creditors
  • Purpose to repay only some creditors ※ also includes loan agreement between relatives
  • Discarded for use in gambling and play

There is no problem in that the money obtained by disposal is used for living expenses and personal bankruptcy expenses instead of these purposes.

However, if the gain on sale becomes large and ownership of property over 200,000 yen is recognized in the case of personal bankruptcy, it will be a dividend to creditors and it will be a management case.

Depending on the goods to be sold, the time and the amount of money, there will be the possibility of becoming a trustee case.

We recommend that you always consult with a lawyer if you do not dispose of it yourself.

4. Pay the attorney’s fee for personal bankruptcy with refunded overpayment

While preparing for a bankruptcy proceeding, you may find that overpayments exist.

In such a case, it may be possible to make an overpayment refund request before the personal bankruptcy and to use the returned overpayment for payment of attorneys’ fees, living expenses, and non-payment taxes.

However, after filing for bankruptcy, if it is known that there is an overpayment, it will be used for dividends to the creditors, and it will become a trust case for property investigation.

Be sure to check for overpayment before bankruptcy.

If you have a debt that you started borrowing before 2007, you may be able to claim an overpayment!

If you have a long-term debt, be sure to consult a lawyer.

Please refer to the article “The Overpayment Scheme” for details on the overpayment refund request system and the points to be asked when asking a lawyer.

5. Make a personal bankruptcy and save your lawyer

In the case of a personal fund case, proceeding with a lawyer as an agent can save up to ¥ 300,000 in advance paid to the court.

Procedure of simultaneous abolition case becomes bankrupt when application documents submitted are accepted, and case is closed when we obtain disclaimer permission.

In other words, you can go into bankruptcy if you only have documents.

It seems that there is no need to ask a lawyer until you pay 300,000 yen.

But in fact, asking a lawyer is a big advantage.

Let’s look at the advantages and disadvantages of doing personal bankruptcy individually.

merit The cost is very cheap
Only procedure fee of about 15,000 yen paid to the court
Demerit
  • There are a lot of necessary documents at the time of petition
    Property list (passbook, salary statement, retirement statement, car verification, and other documents that prove the value of property), 2 months’ household account book before filing, list of creditors (all items must be completely stated), etc.
  • Reminders and repayments do not stop while collecting documents
    While asking for a lawyer will immediately stop the proviso and repayment, if you go into bankruptcy yourself, there will be no cessation or repayment while collecting the documents.
  • Depending on the situation, it may not be simultaneously abolished but it will be a trust case

※ Refer to the description and writing about self bankruptcy

In comparison, when asking a lawyer, it turns out that there is a great advantage that the prompting and repayment will stop immediately.

Furthermore, as introduced at the beginning, in actual bankruptcy proceedings (the simultaneous abolition in 2014, administration case), 85% of the total was asked to be a lawyer as an agent.

Thirteen percent of those who asked a judicial scrivener. Only 2% of individuals have filed procedures.

As this figure proves , doing personal bankruptcy proceedings to save lawyers costs is highly discouraged.

In addition, in the simultaneous abolition case where debt exemption is permitted, it is possible to request a judicial scrivener to prepare necessary documents if the application documents are prepared and submitted.

It can be said that whether you go to an individual to save costs or ask a low-risk lawyer or a judicial scrivener depends on what you consider to be bankruptcy.

Earth Law Office (First time consultation free of charge) if you want to consult about personal bankruptcy

【Conclusion】 If you can not pay a lawyer for bankruptcy, consult a lawyer for payment method.

【Conclusion】 If you can not pay a lawyer for bankruptcy, consult a lawyer for payment method.

Self-bankruptcy is a debt consolidation method that allows you to chase all your current debt and get a chance to start your life again.

While worrying that you can not pay for your own bankruptcy, your debt and arrears will increase.

Such a situation is an issue that should be resolved quickly for both you and the creditor.

This time, we introduced five ways to pay lawyers’ fees for personal bankruptcy.

Although you can go into bankruptcy yourself without relying on a lawyer, it is very difficult to prepare your documents while repaying your debt.

It would be a good idea to ask a lawyer for the cost.

Most law firms offer free consultations, so firstly ask your lawyer what payment options are available.

 

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