How to File Bankruptcy Inexpensively
There are many reasons why you may find yourself needing to file for bankruptcy. Rarely is this an easy choice to make, but when life makes an unexpected turn, you may find yourself with no other choice but to seek the fresh start that bankruptcy promises. If you are like many people in financial crisis, the high cost of bankruptcy might hold you back from taking this final step. There are however, ways that you can inexpensively file for bankruptcy.
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Instructions
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Locate an attorney that offers pro bono or low-cost services. Contact your state's bar association. Someone there will be able to provide you with information regarding free legal services and what the qualification to receive these services are in your area. Call law schools in your area and inquire if they have legal clinics that provide free legal services to assist you with your filing.
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File for bankruptcy without the assistance of a lawyer. Although hiring an attorney is recommended, it isn't necessary. When you decide to self-file your bankruptcy, you are referred to as a pro se litigant and expected to fully understand the procedures involved when filing. Study the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Go to your local court's intake counter or website to familiarize yourself with the local rules of the court in which you are filing. Research information from bankruptcy books and the Internet to determine which bankruptcy is best for your circumstances and what steps are required.
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Hire a bankruptcy petition preparer. Bankruptcy petition preparers are people other than lawyers who will type out your bankruptcy papers for a flat fee. Because they are only allowed to prepare your documents, you are entirely in charge of ensuring that you are filing the correct type of bankruptcy and have all the necessary documents required to file. Check local listings, the Internet or ask around to find someone who has previously used the services of a bankruptcy petition preparer. If you have access to a lawyer, ask if he can recommend a reliable one for you. Hire a preparer from your area who is familiar with your local court requirements.
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Check for waived or reduced filing fees if you are filing Chapter 7 bankruptcy. You may file a form with your bankruptcy clerk to pay your fees in installments over six months if you are unable to pay all at once. If your financial situation is such that you are unable to pay the fee even in installments, you may complete an application to waive the cost entirely. Download Form 3B the "Application for Waiver of Chapter 7 Filing Fees" from the Bankruptcy Forms page on the United States Courts website and follow the instructions to complete. Submit your completed form to the local court clerk. The judge will make a decisions based on your income. To qualify, your income must be less than 150 percent of the current poverty line for a family of your size.
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Tips & Warnings
Care should be taken when self-filing your taxes; failure to file all the proper documents could result in your case being dismissed.
It is against the law for the petition preparer to give you any legal advice or counsel on any aspect of your bankruptcy.
References
Resources
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