Bankruptcy is a judicial process involving individuals or businesses who fail to meet their financial obligations and get help from the federal court to make payments to their creditors. It’s a relatively long and complex procedure that requires professional service. If you may be experiencing financial troubles, contact the Law Office of Robert C. Hahn, III, P.S for professional help from an experienced bankruptcy lawyer.

The federal court system handles all bankruptcy filings and categorizes them into several types, including: 

• Chapter 7 bankruptcy (straight bankruptcy) which allows individuals or businesses to liquidate their assets to pay off debts.
• Chapter 11 bankruptcy, also known as reorganization bankruptcy, where companies restructure their affairs to keep businesses running and pay back their creditors.
• Chapter 13 bankruptcy, referred to as wage-earners bankruptcy. Individuals with a steady income devise a strategy to repay all their loans over a while, usually three to five years.

Like all legal processes, filing for bankruptcy usually costs the individual a significant amount of money in court and lawyer fees. What happens when you don’t have enough money to cater to all these expenses? Below are some of the ways you can file for bankruptcy with no money:

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  File for Bankruptcy On Your Own

Filing for bankruptcy yourself allows you to bypass attorney fees; however, it’s a risky approach. Self-filled applications have a higher propensity of not following through than those filed by a professional.

The reason is, bankruptcy law is a highly technical component of the law. Professional bankruptcy attorneys not only have the experience but the know-how, making the process more likely to be successful than when you’d be doing it on yourself.

Filing bankruptcy on your own will require you to follow complex steps such as gathering all the required paperwork, researching your state’s laws and regulations on the matter, and making court appearances.

The process is time-consuming and may interfere with your time and sometimes even work. Hiring a professional will help streamline the process and reduce any mishaps.

• Assistance From Local Organizations

If you cannot afford the legal fees involved in filing for bankruptcy, check with local legal organizations to see if you qualify for legal aid. Some bankruptcy courts provide free clinics to assist debtors who wish to file for bankruptcy relief independently. 

Contact local bankruptcy court to learn about the services it offers or to obtain a list of free services or programs in your region. Legal aid organizations and pro bono attorneys provide free legal services or support to low-income individuals in most states. 

• Court Waivers

Bankruptcy courts offer waivers to individuals incapable of paying legal fees. Consult with your attorney or legal representative to determine your eligibility for a court waiver. Individuals looking to file a chapter 7 bankruptcy qualify as long as their income falls within 150% of the federal poverty statutes. 

 

Unfortunately, waivers aren’t available in chapter 13 bankruptcies; however, you may be able to include court expenses in your repayment plan where you make monthly installments instead of a lump sum. The only downside to this option is you run the risk of the court dismissing your filing if you delay or fail to make the payments as stated.

• Tax Refunds

Consumer bankruptcy filings are substantially higher in March and April than the rest of the year because many people utilize their tax refund to pay for legal services. As a result, bankruptcy experts experience an influx in the number of people looking for consultation.

• Free Consultations

Take advantage of the free consultations offered by bankruptcy attorneys to get professional advice and possible alternatives to your situation. They will help you determine the type of bankruptcy to file for as well as payment options.

• Cut Back on Expenses

It may be time to have a look at your budget. Sit down and identify any expenses that you can do without; this will help you come up with a substantial amount to pay your legal fees. Your attorney will guide you in coming up with a sufficient budget that won’t be too much to maintain.

• Ask for Help from Family or Friends

Asking for help, and especially money, is often an uncomfortable subject; however, in some cases, it may be the most viable alternative. You will have to inform your lawyer if you choose this route because you will be required to state the source of the funds in the court proceedings.

Wrap-up

Filing for bankruptcy is a complex and costly procedure, but sometimes one may not have the funds required. Luckily, there are several alternatives; consider getting legal aid from pro bono attorneys, loans from friends or family, or cutting back on expenses. Some bankruptcy courts even offer free clinics to help debtors who want to petition for bankruptcy relief independently.