One of the hardest things facing someone who needs to file for bankruptcy is figuring out how to pay for legal fees. Sometimes people will pay their bankruptcy fees with a tax refund. Some people save up the money that was going toward credit card minimum payments. For still others, they might have access to legal insurance through their job. Legal insurance plans are a great way for people struggling with their debts to be able to afford to file for bankruptcy. I work with a major legal insurance plan called ARAG and gladly accept clients with this plan.
ARAG is a plan available to people who work for the state California, the University of Calfornia and a growing number of private employers. ARAG usually covers all legal fees necessary to determine whether a plan member qualifies for a Chapter 7 or Chapter 13 bankruptcy, including completion of the means test. They also cover information gathering, document review, initial correspondence/communications and the legal fees for filing the case. The plan member must pay out-of-pocket expenses such as the court filing fee and costs for the mandatory credit counseling and financial management classes, but this costs are generally less than $500.
ARAG requires that eligible employees sign up for coverage. A monthly fee is deducted from the employee’s pay check to pay for the ARAG plan.
Many people do not even realize they have legal insurance as an employee benefit. You have earned the benefit, so why not take advantage of it? Tell your co-workers to take advantage of these useful employee benefits and let ARAG help pay for you to get a fresh start.
If you have ARAG legal insurance and are struggling with paying you debts, please call me at (619) 448-2129 for a free consultation.
Image Credit: Tax Credits