How to File Bankruptcy for Free

Bankruptcy is regulated by federal law and must be filed in federal court. There are 94 federal judicial districts in the United States, each one with one or more bankruptcy courts.
Bankruptcy helps individuals or businesses repay overwhelming debt. Through bankruptcy, businesses are able to make orderly payments to their creditors either by reorganization or liquidation of assets. While it is possible to avoid bankruptcy legal fees by filing on your own, you will still need to pay court fees.

Difficulty: Challenging

Instructions

1. Get credit counseling at least 180 days before filing. The bankruptcy law requires that individuals receive credit counseling before filing for bankruptcy. Make sure you obtain proof of such counseling.

2. Compile your financial records. When filing for bankruptcy you must prove that you are overwhelmed by your debt and can no longer make payments. You will need to get your bills together and all your creditor information to prove this. You also need to prepare a financial statement.

3. Study the federal government bankruptcy Web site (see Resources below) and obtain specific information for the bankruptcy court in the federal court system in your district.

4. Gather all the documentation required, as well as your filing fees, and file the paperwork in the bankruptcy court. The bankruptcy forms are available in fillable form on the bankruptcy website.

5. If you are filing a business bankruptcy, even if it is a one-man business, you must use an attorney, in which case you will need to pay legal fees and it will not be free. Alternatively you may try accessing legal aid resources in your community to see if you qualify for free legal services. You may also contact your state bar association. There may be lawyers willing to offer their services pro bono.

Resources

• U.S. Bankruptcy Court Information
• Legal Aid Offices by State
• American Bar Association Link to State and Local Bars

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