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How to File Bankruptcy With No Money

How to File Bankruptcy With No Money Team
UpdatedNov 30, 2023
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    2 min read

How Can I File Bankruptcy at Low or No Cost?

Bankruptcy on a Tight Budget

There are two out-of-pocket costs to bankruptcy:

  • Lawyer’s fee
  • Court filing fees

You can avoid lawyer’s fees two ways: File your own bankruptcy or find a lawyer whose time will not cost you anything.

You can avoid filing fees by asking the court for a fee waiver.

Avoiding Lawyer’s Fees

You can file your bankruptcy petition on your own, which will avoid any lawyer's fees. However, filing on your own a risky strategy.

Most self-created and filed bankruptcy petitions are not successful. Virtually all lawyer-produced bankruptcy petitions succeed. Why? Bankruptcy law is among the most technical specialty areas of law. It's easy to make a mistake with bankruptcy paperwork, which will cause the court to dismiss the case.

Bankruptcy lawyers are specialists. They learn bankruptcy law inside out. recommends readers filing bankruptcy to do so with a lawyer's assistance to have the best chance of success.

If you can't afford a lawyer, then consult with a local organization that helps low- and no-income consumers find low- and no-cost legal services. See the article Where to Find No-Cost Legal Aid if You Have Low or No Income. Help may be available, but you need to ask for it.

Struggling With Debts?

Unsure how to handle your debt? Use the Debt Coach tool to receive a free analysis of all your debt resolution options. It’s free!

Avoiding Bankruptcy Court Fees

Bankruptcy courts provide options to people who cannot afford filing fees.

For example, if your income is below a certain amount, the court may waive your filing fee altogether.

Even if your income does not qualify you for a fee waiver, the court may allow you to pay your fee in installments rather than a lump sum. Discuss filing fee options with your lawyer.

Bills Action Plan

You may be able to file for bankruptcy at little or no cost. Take the following steps:

  1. Make sure you understand the difference between a Chapter 7 bankruptcy that discharges your debts and a Chapter 13 bankruptcy where the court will supervise a repayment plan.
  2. Look at all your bankruptcy alternatives, including credit counseling and debt settlement.
  3. Meet with a legal aid organization in your area, to see if you qualify for free attorney assistance.
  4. Research whether you are eligible to have the bankruptcy filing fees waived.

Struggling with debt?

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q3 2023 was $17.291 trillion. Housing debt totaled $12.489 trillion and non-housing debt was $4.802 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Each state has its rate of delinquency and share of debts in collections. For example, in West Virginia credit card delinquency rate was 5%, and the median credit card debt was $410.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.



BBill, Mar, 2010
You should seek advice and counsel from your local or regional community legal center or a consumer advocacy office. They will frequently have low or no cost paralegal help available for you.Hang in there Melissa, and if you really have no assets and no income then bankruptcy sounds like your best alternative.Good luck. Bill
MMelissa Cash, Mar, 2010
i need to claim complete bankruptcy but I have no money, no income.
BBill, Aug, 2009
Every subculture uses its own language to describe concepts and ideas. Most legislators are lawyers, and they tend to write laws using the language they learned in law school. My guess is that you are getting hung up on "real property." Real property is land and buildings permanently affixed to the land. A typical home on a suburban lot is an example of real property. The Empire State Building and the land it is on in Manhattan is real property. The clothing and furniture in a home is also property, but in law-speak, those items are not "real property." A homestead exemption allows the property owner set aside or reserve up to a certain amount of value for their real property, which presumably is their residence.
TTammie, Aug, 2009
I don't understand the Homestead exemption for Colorado."Real property up to $60,000" What does that mean? I feel stupid for not comprehending. I just don't want to lose my home if I have to file.