Can I File Bankruptcy For Free

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The key reason why most people file for bankruptcy is because they are facing debts they can no longer afford to pay. As a shortage of cash is a major concern it is not surprising that many ask the question "Can I File Bankruptcy For Free?"

The quick answer to this question is, yes. There are administrative costs involved when it comes to filing the necessary bankruptcy forms,  petition and other supporting documents that are required by law. These costs will have to paid even if you file a bankruptcy case yourself.

However, these costs have exemptions and can be waived by the courts if the individual can provide evidence that they are on low income.The costs of filing the required legal documents may vary from state to state but generally there is a charge of $200 for filing chapter 7 bankruptcy and a charge of $300 for chapter 13.

Bankruptcy Without An Attorney

Although there are necessary costs attached to filing bankruptcy you can save costs by not appointing a bankruptcy attorney and carrying out the process on your own. Before, you consider this route it would be in your interests to make yourself fully aware of the processes involved.

Bankruptcy law can be complex and the implications can differ within each state. You need to be sure that you have the time available and are willing to learn the processes and legal requirements involved. You also need to be aware of  the potential outcomes involved in relation to your financial and personal situation.

By not appointing an attorney you will be representing yourself which basically means you become the lawyer representing your own bankruptcy case. This can be a risky strategy as during your case your creditors who will trying to squeeze as much out of your assets,  will be taking every opportunity to interrogate you in all aspects of federal law and your defence. You will need to be fully prepared for your defence.

Filing Your Case

When you file bankruptcy for free you will have to fill out the necessary forms yourself. These are provided free of charge from your own district court.

The first stage that you need to do in order to proceed is to calculate the means test which determines whether you  qualify to file either chapter 7 or chapter 13 bankruptcy. Again, this needs to be calculated carefully.

The bankruptcy trustee's role is to analyse and scrutinize the information you will be providing in your forms and disclosure statement. Therefore, you will require a good understanding of the US Bankruptcy Code and Procedures as well as the rules of the court before you fill out the necessary forms. For example, if you do not fully disclose all your relevant assets and property this could be construed as fraud and a dismissal of your case.

In most cases you will need to receive credit counseling before you can file your bankruptcy case.  According to the United States Courts website this needs to be "within 180 days before filing a case and to file a statement of compliance and a certificate of credit counseling furnished by the provider. Failure to do so may result in dismissal of the case."

Getting Free Legal Services

If you cannot afford a bankruptcy lawyer you may be able to apply for legal help for free. Good places to contact is your local bar association. Other alternatives could be local law schools or Universities with law faculties. Many of these educational institutions may have facilities that offer free legal advice and free bankruptcy evaluation services to the public.

You can also check the bankruptcy court that you will be filing your case. Many will have their own website with a resource sections that lists free legal help resources. There will also be information and instructions regarding the legal procedures involved which can help you when you are preparing your case.

A Final Thought

Although, you can file bankruptcy for free (depending on your income) it means that you will be representing yourself without the expertise and experience of a bankruptcy attorney. As pointed out by the United States Court website it is "extremely difficult to do it successfully" if you file bankruptcy yourself.

Becoming bankrupt can have long term implications even after being discharged therefore, doing it yourself should not be taken lightly even if lack of money is a problem. Therefore, the use of an attorney should be carefully considered.

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