How to File Bankruptcy for Low Income Individuals
- 1). Visit the U.S. Courts' website to read "Bankruptcy Basics." (See Resource 1.) This will determine which Chapter is appropriate to your case and whether or not your case is fairly simple (generally, most people filing for Chapter 7 have fairly straightforward cases). If it's quite complex, you may want to consult with a lawyer.
- 2). Purchase a DIY book such as Nolo's "How To File Chapter 7 Bankruptcy" at your local bookstore or online. Books such as these not only provide step-by-step instructions for every single form, but they include the forms with the book.
- 3). Before, during or after filling out all required forms but at least 180 days prior to filing your bankruptcy petition, you must take a mandatory credit counseling class. This takes a couple of hours, can be done online, by phone or in person, and costs $25-$50. According to attorney Stephen Elias in his book "How To File For Chapter 7 Bankruptcy," credit counseling agencies legally must offer their services even if you cannot afford to pay.
- 4). If your income is not much higher than your expenses, consider filling out Form 3B, which is a fee waiver included with the bankruptcy packet that you can pick up at your local bankruptcy court or download from their website. The court fee is $299; but if you successfully stand before a judge to explain your case, the entire court fee will be waived right there.
- 5). Take your completed bankruptcy petition to your local bankruptcy court to file. Pay the court fee if you haven't filled out a fee waiver or ask to stand before a judge if you have. If the judge dismisses your waiver, you still have the option of paying in three or four installments.
- 6). After filing your petition but before your Creditors' Meeting, which will be in the next 30 days, you are required to take a debtor education class. The average fee is $50; but if you shop around (at approved agencies), you can pay as little as $14.95. (See Resource 2.)
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