Before You File Bankruptcy Without an Attorney, Make Sure It Is the Right Thing for You
If you have any doubts, consider talking to a Chapter 7 bankruptcy lawyer for free. Most bankruptcy attorneys offer free bankruptcy consultations. Ascend can help you locate a bankruptcy lawyer in your area if you want to make sure that filing for bankruptcy is right for you.
If you decide to file Chapter 7 without a lawyer, below is an overview of the basic steps to file Chapter 7 without a lawyer. You may also be able to file a bankruptcy online on your own.
Preparing to File Chapter 7 Without an Attorney
The steps below help you file for bankruptcy without a lawyer under Chapter 7 of the United States Bankruptcy Code. They are not intended as legal advice. Instead, these steps are designed for a simple, no-asset Chapter 7 bankruptcy case.
10 Steps to File Chapter 7 Bankruptcy Without a Lawyer
Let’s get started:
1. Gather Information and Documents
Before completing your bankruptcy forms, you will need to gather information regarding your debts, assets, income, and expenses. The first thing to do is get free copies of your credit reports from all three credit reporting agencies. You can get free copies of credit reports here.
In addition to your credit reports, you need copies of:
- Tax returns for the past two years
- Current pay stubs and proof of income from all sources for the past six months
- Recent credit card bills, loan statements, and any other evidence of the debts you owe
- Statements for your checking account, savings accounts, retirement accounts, stock accounts, and all other financial accounts that you have an interest in at the time of filing
- Titles and/or registrations for all motor vehicles titled in your name alone or with another person
- Current household expenses include utility bills, lease payments, rent, etc.
- Real estate appraisals and deeds to property
- Any other documents that relate to your income, expenses, debts, and assets
Gathering as much information as possible before you begin is essential. Being prepared helps you avoid mistakes, but you need to decide if filing Chapter 7 without a lawyer is best for you.
2. Complete the Chapter 7 Means Test
Before going any further, complete the Chapter 7 Means Test using these forms. The Means Test determines if you meet the income requirements for a bankruptcy discharge under Chapter 7. The bankruptcy discharge is the order that removes your legal responsibility to repay a day. Chapter 7 is intended for individuals who do not have enough money to repay their debts after paying their living expenses.
Ascend provides a free Chapter 7 bankruptcy calculator. You can estimate whether you qualify to file Chapter 7 using our calculator online.
BEWARE! Income requirements are based on where you live and how many people live in your household. The figures are adjusted for inflation every few months. Also, some expenses may be limited based on household expenses, such as utilities, food, and clothing.
The most recent figures are provided on the United State Trustee’s website. In the center of the page is a box entitled “Data Required for Completing the 122A Forms and the 122C Forms.” Click the “Choose Option” box to select your filing date for the most recent figures.
3. Complete Your Credit Counseling Course
If you “pass” the Chapter 7 Means Test, complete your credit counseling course. The credit counseling course is the first of two bankruptcy courses required to file bankruptcy without an attorney and obtain a bankruptcy discharge.
Credit counseling courses are offered online by many approved companies. The fees range from $10 to $50. The UST provides a list of approved companies on its website. You must use a company approved by the UST for bankruptcy courses.
You may ask the company if you qualify to waive the fee for the course. Some low-income individuals may receive the class free of charge.
4. Complete Your Chapter 7 Bankruptcy Forms
Your Chapter 7 bankruptcy forms consist of roughly 24 forms. Depending on the information used to complete the forms, your bankruptcy forms could number 70 or more pages. You can access the official bankruptcy forms online through the United States Court website.
If you hire a bankruptcy lawyer, your lawyer completes your bankruptcy forms and files them with the bankruptcy court electronically. If you cannot afford to hire a Chapter 7 bankruptcy lawyer, talk with Ascend about our free online bankruptcy service or schedule an appointment with a legal aid provider in your area.
5. Have Your Filing Fee Ready
The filing fee for a Chapter 7 case is $338. You must pay this fee to the United States Bankruptcy Court where you file your bankruptcy forms without a lawyer. Most courts only accept cash or money orders, so check with the court before filing your forms.
If you cannot pay the filing fee, you might qualify to pay your fee in installments or waive the fee altogether. You must file a separate form to request installment payments. If you cannot afford installment payments, you can file a form to request a waiver of fees.
6. File Your Bankruptcy Forms with the Bankruptcy Court
Print your bankruptcy forms. They must be printed on one side of the paper. Review each page for errors and mistakes. If the forms are correct, sign the forms in all places indicating a signature.
You must attach copies of your:
- Pay stubs or evidence of income for six months before the month you file the bankruptcy case(make sure to mark out all but the last four digits of your Social Security Number)
- Credit Counseling certificate
- Application to waive the fee or pay the fee in installments
Some courts have local forms that must be completed and filed. Check with the court to ensure you complete the local forms and include them in the package. The court usually requires one copy of your bankruptcy forms, but you may want to call before going to the court or take two copies with you just in case you need another copy.
Your Chapter 7 case must be filed with the bankruptcy court that has jurisdiction over where you live. You can locate your bankruptcy court online. Ensure you have your driver’s license or another acceptable form of identification, or you will not be able to enter the courthouse.
The clerk of court files your bankruptcy forms and returns a Notice of Bankruptcy Filing that includes your bankruptcy case number, the name of your Chapter 7 trustee, and the date and time of the Meeting of Creditors. At this point, you have officially filed a Chapter 7 bankruptcy case.
7. Mail Required Forms to the Chapter 7 Trustee
Each Chapter 7 trustee has a different process for obtaining documents for court. Check with your trustee’s office for the document list you must send to the trustee’s office before your 341 Meeting of Creditors. In addition, some trustees have websites that explain their procedures.
Open all mail from the Chapter 7 trustee, bankruptcy court, or creditors immediately. The information in those letters could impact your case. If you do not follow up immediately, your case could be dismissed, or you could lose the property you wanted to keep.
8. Complete Your Debtor Education Course
Most companies that offer the Credit Counseling Course also offer the Debtor Education Courses. Complete the second bankruptcy course as soon as possible and file the certificate of completion with the bankruptcy court.
The course teaches you about debts and how to create a budget. The information provided by the course can be beneficial for debtors exiting Chapter 7. It takes about two hours to complete the course.
Failing to complete the second bankruptcy course before the deadline means you do not receive a bankruptcy discharge. In other words, you still owe all your debts as if you never filed for bankruptcy without a lawyer.
9. Attend the 341 First Meeting of Creditors
The 341 First Meeting of Creditors is held 30 to 45 days after filing your bankruptcy case. The Chapter 7 trustee conducts the hearing. You must have your original driver’s license and Social Security Card with you at the hearing. If you do not have these documents, contact the Chapter 7 trustee’s office immediately to ask what other documents would be acceptable, if any.
It is also a good idea to take a copy of the bankruptcy forms you completed with you to court, copies of your bank statements for the last two months, and updated paystubs. In addition, take copies of any documents requested by the Chapter 7 trustee, even if you have already provided those copies to the trustee’s office.
The trustee places you under oath and asks you questions about your case. The questions should be easy to answer because they are based on the information on the bankruptcy forms you completed and filed with the bankruptcy court. Your creditors can also ask questions, but many creditors never appear.
If the Chapter 7 trustee does not believe you have any assets to repay your unsecured debts and there are no problems with your case, he will declare the case to be a “no-asset” case. You should receive your bankruptcy discharge within 60 days if you have completed and filed your second bankruptcy course certificate and there are no problems with your case.
10. Deal With Your Car Loan
Secured debts (i.e., car loans and mortgages) are not discharged. Instead, you must continue paying these debts or surrender the property. If you surrender the property through Chapter 7 bankruptcy, the creditors cannot demand any more money even if they do not receive enough money to pay the debt when they sell the asset.
If you want to keep your car, you have a couple of options. First, you can reaffirm the loan, meaning that you agree the loan stands outside the bankruptcy case. If you default on the loan, the lender can repossess the vehicle and sue you for any money you may still owe the creditor.
You can also file a motion with the court to redeem the car if your car is worth less than you owe on the loan. You must prove the car is worth less than you owe on the car loan. Furthermore, you must pay the vehicle’s value in one lump sum if the court grant’s the motion.
5 Important Things to Consider Before Filing Chapter 7 Without an Attorney
Filing for bankruptcy relief could be the best solution to your debt problems. However, before you go down that path with the help of a bankruptcy lawyer, there are five essential things you need to consider:
1. The Length and Complexity of Bankruptcy Forms and the Need for Accuracy
A completed bankruptcy package could contain 70 to 100 or more pages, depending on the case’s complexity. Bankruptcy forms can be difficult to understand. You must read each page and section carefully to ensure that you include the correct information requested.
You sign your bankruptcy forms under penalty of perjury. In other words, you swear under oath the information is accurate and complete.
Mistakes could result in losing property that would generally be safe from the Chapter 7 trustee. Errors may result in owing debts that you could have discharged. In the worst case, mistakes could result in allegations of bankruptcy fraud.
Hiring a Chapter 7 bankruptcy attorney helps ensure that your bankruptcy forms are complete so that you do not make costly mistakes.
2. Does Your Chapter 7 Case Have Complex Issues?
Filing Chapter 7 without an attorney is only a good idea if your case does not involve any complex issues. Complex issues could include, but are not limited to:
- A home you want to keep, but you are behind on the mortgage payments
- You owe back child support or alimony payments
- If you are behind on your car payments but want to keep your car
- You owe back income taxes or other government debts
- Your debts include judgments regarding a DUI accident or fraud
- You have a large inheritance you just received or anticipate receiving soon
- Your income comes from a trust or other family arrangement
- Your spouse makes a lot of money and does not need to file for bankruptcy relief
- You have not filed tax returns for several years
- Potentially, you own assets that are worth more money than the allowed bankruptcy exemptions
- You paid family members money within the last year
- You sold or transferred anything of value within the past two years
These are just a few examples of issues that could complicate your Chapter 7 case. So before filing bankruptcy without a lawyer, take advantage of a free bankruptcy consultation to make sure Chapter 7 is best for you.
3. Pros and Cons of Bankruptcy Petition Preparers
Some companies offer to prepare and file your bankruptcy case for you. These companies are often called “bankruptcy petition preparers” or BPPs. A BPP is someone who helps you fill out your bankruptcy forms. Their role is limited to typing your bankruptcy forms from the information you provide. They are not permitted to give legal advice. Only attorneys may give legal advice. A BPP does not represent the debtor in the bankruptcy case or court.
However, the courts have found many BPPs tell debtors what chapter to file and give legal advice. For some debtors, this arrangement works out. They receive their bankruptcy discharge. However, they may pay as much for the BPP's services as they would hire a Chapter 7 attorney who represents them and who can give them legal advice.
Many debtors could complete the forms themselves, especially in jurisdictions where courts have self-help desks that provide limited information about filing Chapter 7 without a lawyer.
4. Pros and Cons of Bankruptcy Filling Software
Bankruptcy software makes it easier to complete your bankruptcy forms. You enter information into the program, and the software completes the bankruptcy forms. Well-developed bankruptcy software is easy-to-use, field-driven software that has updated bankruptcy forms and current information. Some bankruptcy software is as easy to use as the credit counseling and debtor education systems used for bankruptcy courses.
However, the result of using bankruptcy software is only as good as the information you input into the software. If you enter incorrect information or leave information out, your bankruptcy forms may be inaccurate.
The best bankruptcy software systems for pro-se debtors include detailed information about each bankruptcy form, including the information included in the form. Based on the description of the bankruptcy form, you determine what to enter to ensure that the bankruptcy form is complete and accurate.
5. Success Rate of Pro Se Chapter 13 Cases
If you do not qualify for Chapter 7, you might be able to get out of debt by filing a Chapter 13 bankruptcy case. Chapter 13 bankruptcy is a court-supervised debt repayment plan. It can have a lot of advantages for some individuals such as:
- Stops foreclosures and repossessions
- Protects property that a Chapter 7 trustee could take
- Generally gets rid of most unsecured debts for pennies on the dollar
- Allows you to catch up on back alimony and child support payments
- Gets rid of most income tax debts
However, Chapter 13 bankruptcy cases are much more complex than Chapter 7 cases. Therefore, it is strongly recommended that you talk to a Chapter 13 attorney. Unfortunately, only 2.3% of the Chapter 13 cases filed without an attorney from 2010 through 2016 were successful.
To help you understand why you might want to hire a bankruptcy lawyer for your bankruptcy case, let’s review some of the pros and cons of hiring a bankruptcy attorney.
Pros of Hiring a Bankruptcy Lawyer
Many people do not consider filing for bankruptcy to get out of debt because they worry about the cost of hiring a bankruptcy attorney. However, they don’t realize that hiring a bankruptcy attorney is often much less expensive than trying to do it on their own. Furthermore, there are some instances where a person might not need a bankruptcy attorney to file for bankruptcy relief. However, having a bankruptcy lawyer handle your Chapter 7 or Chapter 13 case has benefits that you cannot get from representing yourself.
Bankruptcy law is a complicated legal field. Typically, attorneys who do not practice bankruptcy law will not try to answer questions about bankruptcy cases. Therefore, the best benefit of hiring a bankruptcy attorney is having someone on your side who understands bankruptcy law and how to use that law to help you get out of debt.
Other benefits of hiring a bankruptcy lawyer include:
Explain Your Bankruptcy Options
Most individuals file under Chapter 7 or Chapter 13 of the Bankruptcy Code. Chapter 7 bankruptcy is a liquidation or “straight” bankruptcy, while Chapter 13 bankruptcy is a court-supervised repayment plan. A bankruptcy lawyer reviews your financial situation, explains your bankruptcy options, and discusses whether filing bankruptcy is right for you.
Ensure You Are Eligible to File Bankruptcy
Chapter 7 bankruptcy is designed for individuals who cannot afford to repay their unsecured debts. Therefore, you must meet income requirements to receive a bankruptcy discharge in Chapter 7. If you file under Chapter 13, you must have sufficient income to fund the Chapter 13 repayment plan.
A bankruptcy lawyer carefully reviews your situation to determine if you are eligible to file under each chapter of bankruptcy. Furthermore, your attorney should review your recent financial situation to determine if there could be any potential problems. In some cases, it might be better to file under Chapter 13 to avoid issues with recent credit card purchases or property transfers.
Prepare Bankruptcy Forms
Filing for bankruptcy relief requires completing the federal bankruptcy forms. Federal bankruptcy forms include, but are not limited to:
- Bankruptcy petition
- Schedules A & B (detailed list of assets)
- Schedule C (bankruptcy exemptions)
- Schedule D – F (creditor information)
- Schedule G (contracts and leases)
- Schedule H (list of codebtors)
- Schedule I (detailed income information)
- Schedule J (detailed list of household expenses)
- Declaration of Schedules (sworn statement verifying the information contained in the schedules)
- Statement of Financial Affairs (roughly two dozen detailed questions about your financial history)
- Means Test (income test and calculation of disposable income)
- Verification of Social Security Number
- Statement of Intentions (Chapter 7 – a statement about how you intend to treat secured debts)
There could be other forms depending on your case. Completing bankruptcy forms accurately and completely is essential. You sign stating that all information is complete and accurate. Your signature is made under oath with penalty of perjury.
Having a bankruptcy attorney complete the forms decreases the chance of making a costly mistake.
Help Protect Your Property
Individuals are entitled to claim certain property exempt from your bankruptcy estate. That means that the equity in the property is not used to repay your unsecured creditors. Bankruptcy exemptions vary by state.
It is crucial you choose the correct bankruptcy exemptions. If not, your property is not protected from the Chapter 7 trustee or your creditors. A bankruptcy attorney advises you whether any of your property could be in jeopardy and how to protect your property.
Deal With Your Creditors
Most bankruptcy attorneys tell clients to have creditors call the attorney’s office after the person hires the attorney to file a bankruptcy case. Therefore, you do not have to deal with creditor harassment or the stress of creditor calls once you hire a bankruptcy lawyer.
Appear In Court
If you choose to file a bankruptcy case without a lawyer, the court holds you to the same requirements as an attorney. In other words, you are responsible for understanding bankruptcy laws and procedures. In addition, you are expected to understand court procedures, monitor deadlines, and file all required documents to complete your bankruptcy case.
Saves Time
Preparing bankruptcy forms can be time-consuming. Bankruptcy lawyers have software that assists in preparing bankruptcy forms. They are familiar with bankruptcy forms, so they can prepare the forms much quicker than you could prepare the forms for filing with the bankruptcy court. You can focus your time on your family and working to recover from a financial crisis.
Hiring a Bankruptcy Lawyer Increases Rate of Success
As discussed above, the most common “con” of hiring a bankruptcy lawyer is paying bankruptcy attorneys’ fees. However, some attorneys accept installment payments. If you file a Chapter 13, you might be able to pay your attorneys’ fees through your bankruptcy plan.
Having an experienced bankruptcy lawyer to guide you through the bankruptcy process and provide legal advice increases your chance of success. The goal is to eliminate debt while protecting income and assets. The best person to help you accomplish that goal is a bankruptcy lawyer.
Filing bankruptcy without a lawyer could result in:
- Losing property
- Paying debts you could have eliminated
- Having your bankruptcy case dismissed
- Not being able to file for bankruptcy again for a specific period
- Facing bankruptcy fraud charges
Cons of Hiring a Bankruptcy Lawyer
One of the main concerns most people have is whether they can afford the cost of hiring a an attorney. For example, the Chapter 7 bankruptcy attorney fee can be over $1000, and some bankruptcy attorneys require the entire payment upfront without offering a payment plan.
That said, many bankruptcy attorneys do offer payment plans where you may pay as little as $100 per month until the attorney fee is paid so that you can get the relief that you need. Some bankruptcy lawyers also offer a $0 down bankruptcy, which may be more expensive in the long run, but may offer more immediate relief.
Finding a Bankruptcy Attorney Near You
Bankruptcy attorneys generally provide free consultations. Therefore, it does not cost you anything to meet with a bankruptcy lawyer to learn about bankruptcy. If you would like a reputable, affordable bankruptcy attorney in your area, fill in your zip code below to compare bankruptcy attorney options near you.
So, Should You File Bankruptcy Without an Attorney?
Ultimately it's your decision whether to file bankruptcy with or without an attorney, and you understand your finances.
Please feel free to take the Attorney fee bankruptcy calculator below to help you estimate whether you qualify for Chapter 7 bankruptcy and compare the costs and pros and cons comparing filing bankruptcy with or without a lawyer.
