The prospect of filing for bankruptcy can be intimidating, especially if you're not working with a legal professional. While representing yourself may feel overwhelming, it's possible to navigate the process successfully. In no time, you will be able to file and get a fresh start with your finances.

The Process

Once you’ve determined that filing for bankruptcy on your own is the best debt relief option for you, you can start the filing process by following these 8 steps.

Step 1: Choose Your Chapter

The first step is determining which type of bankruptcy chapter you want to file under. The most frequent types are Chapter 7 and Chapter 13, but other bankruptcy options are available.

Chapter 7 is the most common type of bankruptcy, which results in the discharge of most debts and liquidation of your assets to pay back creditors. To qualify for Chapter 7, you must pass a means test that analyzes your monthly income compared to your state median.

Most people file for Chapter 13 if they fail the means test and are not eligible for Chapter 7. This chapter allows you to set up a payment plan with the court to repay some or all of your debt over three to five years, and any remaining debt will be discharged. The main benefit of Chapter 13 is that you do not have to liquidize certain assets.

Step 2: Gather Documents

When you’re ready to file for bankruptcy, there are a few essential documents you’ll need to gather. You’ll need to have your income pay stubs, as well as your credit report. The income pay stubs will help the court determine your average monthly income, and the credit report will show any outstanding debts. Other documents you may need include your tax returns and asset schedules.

Step 3: Credit Counseling

Before you can file for bankruptcy, you will need to complete a credit counseling course. This course will give you the information and tools needed to make informed financial decisions. Credit counseling agencies typically charge $35 to $50 for their courses, but some may waive or reduce the fee if you cannot afford it. Contact the provider directly to request a waiver or lower fee.

Once you’ve completed the course, you’ll receive a certificate that you’ll need to submit along with your bankruptcy forms. A list of accredited credit counselors can be found here.

Step 4: Find Your Court

Bankruptcy is typically filed in federal court which you can easily locate on the US Court Locator. However, if you live in a multiple-district state, such as California or New York, you’ll need to file in the district where you live or have your primary business. You can find out which district that is by checking your local court’s website or calling the clerk’s office. Once you’ve determined which court to file with, you can begin the necessary paperwork.

Step 5: Complete The Forms

The forms you’ll need to complete will vary depending on your circumstances and the state where you live. Your local bankruptcy court will have a list of all necessary forms.

Generally speaking, the documents include a petition, schedules of assets and liabilities, a statement of financial affairs, and a declaration concerning debtors’ schedules. These documents require you to fill out your personal and financial information, such as your property, income, debt, and expenses. With these forms, you inform the bankruptcy court of your situation and guide their decision-making on your case.

Step 6: Waive The Filing Fee

There are several fees associated with filing for bankruptcy, but if you are filing pro se for Chapter 7 bankruptcy, you may be able to waive the filing fee. To do so, you must submit an Official Form 103B and your other bankruptcy paperwork. Form 103B is a request to waive the filing fee and must be accompanied by a financial statement showing that you cannot afford to pay the price. If the court grants your request, you will not be required to pay the fee. However, you will still be responsible for other charges associated with your case, such as the cost of credit counseling and other mandatory courses.

Unfortunately, there are generally no fee waivers for Chapter 13 bankruptcy.

Step 7: File With The Court

Once you’ve completed the forms, you’ll need to file them with the court along with other necessary documents. After this, you will be assigned a trustee. The trustee assigned to your case will be responsible for ensuring that your case is conducted fairly and will oversee its progress.

The bankruptcy court will also send you a mail notice containing information about your case. This notice will include the date, time, and location of your 341 meeting.

Step 8: Attend Your 341 Meeting

Once you have filed your forms, you’ll need to attend what’s known as a 341 meeting. To prepare for your meeting, read the Bankruptcy Information Sheet and have an understanding of your financial situation. At the meeting, your trustee will review your case and ask questions about your assets and liabilities and if any of your creditors have valid claims against you. Creditors are welcome to but are not required to attend. Afterward, your case will proceed with the discharging of debts or creating a payment plan under Chapter 13 bankruptcy.

Is Filing On Your Own Right For You?

Filing on your on can be a lot of work. If you’re stressed about all the steps, or are contemplating if this is the right way to go, these pros and cons may help you make the right choice.

Pros

The most helpful benefit of filing by yourself is the reduction in costs. Although filing for bankruptcy on your own will still cost $313 - $338, depending on your chapter, the cost of an attorney usually ranges from $1,000 - $3,000. Filing bankruptcy by yourself with save you hundreds to thousands of dollars, and you will have complete control of the process.

Cons

Filing for bankruptcy on your own means that you'll need to navigate the complicated process all by yourself, which can be a downside. You'll need to assess your financial situation, decide if bankruptcy is the best option for you, choose between Chapter 7 or Chapter 13, and understand your obligations to file for bankruptcy pro se effectively. Gather as many resources as possible to learn about bankruptcy law and the process. It's crucial not to miss any steps, as this could delay or derail your case. When choosing this route, make sure you feel comfortable with the paperwork and understand what you need to do.

If you are unsure if you should file without the assistance of a lawyer, it is always best to consult an experienced bankruptcy attorney. Consultation services are usually free or low-cost, and it’s better to know all your options before proceeding. With the right preparation and resources, debt relief can be within your reach on your own terms.