How to File for Bankruptcy If You Can't Afford the Attorney Fees
People who have incurred overwhelming debt can file Chapter 13 or Chapter 7 bankruptcy. Chapter 13 allows debtors to come up with a plan to make one monthly payment to the court that will reduce or completely pay off debt within a three- to five-year period. Chapter 7 requires filers to turn assets over to the court for distribution to creditors. In both types of bankruptcy, the court discharges any remaining debt once the case is complete. If you cannot afford a bankruptcy lawyer, you can file pro se (without a lawyer). Filing bankruptcy pro se is a rigorous task requiring thorough knowledge of federal bankruptcy laws and local bankruptcy jurisdiction rules.
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Instructions
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Gather statements, bills, proof of payments, letters and other correspondence for all debts. Compile documentation to prove monthly household expenses such as rent or mortgage, food, utilities, child care expenses and transportation costs. Gather proof of income such as pay stubs, statements from Social Security, pension or social program payments, one to three years of tax returns and six to 12 months of bank statements.
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Take a court-required credit counseling course in the 180 days before you file. Locate a course that the U.S. bankruptcy courts have approved to give pre-bankruptcy certificates by looking on the U.S. trustee website.
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Download the pro se debtors guide from the U.S. Courts website or call or visit the bankruptcy court in your jurisdiction to request a copy. Get a copy of the local rules for your jurisdiction by phone, in person or by downloading one from your bankruptcy jurisdiction's website. Read the documents carefully. Seek the assistance of a legal aid organization in your area if you need help.
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Download the bankruptcy petition from your jurisdiction's website or from the U.S. Courts website. You can also get copies from the courthouse directly or call to request the petition by mail.
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Fill out the paperwork for the means test to ascertain if you need to file Chapter 7 bankruptcy or Chapter 13 bankruptcy. If your income is above the median in your state, file Chapter 13. If you income is below your state median, file Chapter 7.
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Fill out the remaining petition documents. Check your petition information against the bills and proofs of income and expenses you collected to ensure you include everything. Do not purposefully leave out information on debts, asset or income because the court can dismiss your case for fraud.
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File the petition at the court house in your jurisdiction. Pay the filing fee -- $299 for Chapter 7 or $274 for Chapter 13, as of November 2010 -- by cash or money order because U.S. bankruptcy law does not allow pro se debtors to pay court fees by check. Get the date for the 341 meeting and the contact information for the trustee of your case from the court clerk. Request a Chapter 13 plan form if you are filing Chapter 13.
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Complete the Chapter 13 plan form listing nondischargeable debts and secured creditors for priority payment. Include as much unsecured debt as possible, and the court will discharge any remaining debt after the three- to five-year plan ends. File the plan within 15 days of filing your petition.
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Attend the 341 meeting to answer questions from the trustee and any creditors in attendance about your finances and the information in your petition. Bring all documentation that the trustee requests including photo identification, proof of income and expenses and tax documents. The meeting usually lasts 15 to 20 minutes.
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Receive a discharge of debts approximately six weeks after the 341 meeting for a Chapter 7 bankruptcy. Make all payments on your Chapter 13 bankruptcy plan to receive a discharge or of remaining debt in three to five years.
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