How To File Bankruptcy for Free: A Simple 10-Step Guide

Filing for bankruptcy can feel overwhelming. But for many, it’s the first step toward a fresh financial start. If you face constant collection calls, wage garnishment, or mounting bills, Chapter 7 bankruptcy might help you press pause and begin rebuilding.

The process may sound complicated. But thousands of people file successfully without a lawyer each year. If you have a simple case, you can do the same.

Almost 500,000 people used Chapter 7 bankruptcy to get a fresh start last year. It’s a powerful debt relief tool for those drowning in debt who can’t see a way out.

Here’s an overview of the steps you’ll need to take to get your fresh start.

How To File Chapter 7 Bankruptcy in 10 Steps

Step 1: Collect Your Documents To Assess Your Finances and Debts

Gathering your financial documents brings order to what feels chaotic. Your bankruptcy discharge will probably happen sooner than you think.

Start by getting a free copy of your credit report. You’re allowed one free report every week from each major credit bureau. Your credit report details your credit history including credit cards, lines of credit, home loans, car loans, student loans, and some personal loans.

Some debts won’t appear on your credit report. Common examples include medical bills, some personal loans, payday loans, and tax debts. Make a list of all debts not on your credit report.

Next, gather these documents:

• Tax returns for the past two years
• Pay stubs or other proof of income for the last six months
• Recent bank account statements
• Recent retirement account or brokerage account statements
• Valuations or appraisals of any real estate you own
• Copies of vehicle registration
• Any other documents relating to your assets, debts, or income

You’ll need this information to fill out your bankruptcy forms completely and accurately.

Step 2: Take the Required Credit Counseling Course

Before you can file for bankruptcy, you must complete a credit counseling course from an approved provider. Both Chapter 7 and Chapter 13 cases require this course.

The course helps you explore whether bankruptcy or another type of debt relief fits your situation. It usually takes about an hour. You can complete it online, by phone, or sometimes in person.

You’ll need to:

• Take the course in the six months before you file
• Use a provider approved by the Department of Justice
• Submit the certificate of completion with your bankruptcy forms

The course typically costs between $10 and $50. If your household income is below 150% of the federal poverty line, you can apply for a fee waiver.

Step 3: Complete the Required Bankruptcy Forms

Filing bankruptcy comes with a lot of paperwork. There are more than 20 required forms. Some forms are several pages long. Your total bankruptcy petition may reach 70 pages.

The bankruptcy forms ask about everything you make, spend, own, and owe. The trustee and bankruptcy judge will use this information to understand your financial circumstances. They’ll determine whether you’re eligible to file for bankruptcy.

You’ll also include information about your case. Details include the chapter of bankruptcy you’re filing and whether you’re filing pro se or with a lawyer.

Step 4: Get Your Filing Fee

There is a $338 filing fee for Chapter 7 bankruptcy. The fee is usually due when you file your petition with the court.

If you don’t have the funds now, you can apply to pay in installments. You can ask to make up to four monthly payments.

If you can’t afford to pay even in installments, apply for a fee waiver. To qualify, your total household income must be under 150% of the federal poverty line. The court will decide if you qualify after you submit your petition.

If the court denies your fee waiver application, it will typically order you to pay in installments.

Step 5: Print and Double-Check Your Bankruptcy Forms

Once you have prepared your bankruptcy forms, print them out for the court. You must print them single-sided. The court won’t accept double-sided pages. You will also need to sign the forms once printed.

You will need:

• The petition forms including any required local forms
• Your credit counseling certificate
• Your paycheck stubs
• Your application for a fee waiver or installment plan (if applicable)

Most bankruptcy courts require just one signed original of the petition. Some courts require additional copies. Before you head out to submit your forms, call your local bankruptcy court. Confirm how many copies you need to bring and verify you have all required local forms.

Step 6: Go To Your Local Bankruptcy Court To File Your Forms

Once you enter the doors of your local courthouse, security guards will ask you to pass through a metal detector. After passing security, go to the clerk’s office. Tell the clerk you’re there to file for bankruptcy.

The clerk will take your bankruptcy forms and your filing fee or application. They will scan your forms and upload them to the court’s online filing system. The process usually takes no more than 15 minutes.

Once done, the clerk will call you back and give you:

• Your bankruptcy case number
• The name of your bankruptcy trustee
• The date, time, and location of your 341 meeting

Don’t submit your bank statements or tax returns to the court. These documents go to the trustee after your case is filed.

At this point, your case has been filed. Congratulations! The automatic stay now protects you from all debt collectors. You’re not done yet. Continue with the next steps.

Step 7: Mail Documents to Your Trustee

The Chapter 7 trustee is an official appointed by the court to oversee your case. The trustee sells nonexempt property for the benefit of your creditors. Most bankruptcy filers keep all of their property because exemptions cover it.

Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents. Examples include tax returns, pay stubs, and bank statements.

If you don’t send the trustee the requested documents, your debts may not be discharged. Follow the instructions provided in their letter carefully.

Step 8: Take a Financial Management Course

After filing your bankruptcy forms, you’ll need to complete a Financial Management Course. People also call it a Debtor Education Course. You must use an approved credit counseling agency.

The debtor education course:

• Can be completed online or by phone
• Typically takes at least two hours
• Costs $10 to $50, unless you’re eligible for a waiver

The course educates you about how to make smart financial decisions going forward. You’ll learn how to prepare a budget and avoid incurring debt with high interest rates.

You won’t be eligible to receive a bankruptcy discharge if you don’t finish the course. You must file your certificate of completion from the credit counseling agency with the court.

Step 9: Attend Your 341 Meeting

Your 341 meeting, or meeting of creditors, will take place about a month after filing. You’ll find the date, time, and location on the notice you’ll get from the court a few days after filing.

Most 341 meetings are held virtually via videoconference.

The main purpose of the 341 meeting is for the case trustee to verify your identity. The trustee will ask you certain standard questions. Most meetings last only five minutes or so. Your creditors are allowed to attend and ask questions, but they almost never do.

You must bring your government-issued ID and Social Security card to the meeting. If you don’t bring approved forms of both, the trustee can’t verify your identity. The meeting can’t go forward without proper identification.

You should also bring a copy of your bankruptcy forms to the meeting. Include your last 60 days of pay stubs, recent bank statements, and any other documents your trustee has requested.

Step 10: Deal With Your Car Loan

If you still owe money on your car, you’ll need to tell the court and your lender what you want to do with it. You’ll do this on one of your bankruptcy forms.

You have a few options:

Surrender the car: If you don’t want to keep the car, you can return it to the lender. You’ll wipe out the remaining loan. You can stop making payments right away. The bank will either ask the court for permission to take the car or wait until your discharge is granted.

Reaffirm the loan: If you want to keep the car and keep making payments, you can reaffirm the loan. The bank will send you a reaffirmation agreement after your case is filed. You’ll need to complete, sign, and return it within 45 days of your 341 meeting. The bank then files it with the court for approval. You’ll stay responsible for the loan after bankruptcy.

Redeem the car: Redeeming the car means buying the car from the lender for its current value, not the full amount left on the loan. You must file a motion with the court asking for permission. If the court approves, you pay the lender the car’s current market value in one lump sum. You can save money with this option, but it only works if you have access to the full amount up front.

What About Chapter 13 Bankruptcy?

Chapter 7 and Chapter 13 are the two main forms of personal bankruptcy. Chapter 7 remains the most popular. But Chapter 13 bankruptcy can be helpful for some filers.

Chapter 13 includes a three to five year repayment plan. In this plan, you pay down some of your debts through a Chapter 13 trustee. At the end of your plan, the rest of your eligible debts are discharged.

Your monthly payment is based on how much you’re able to pay. The means test analysis, your actual income and expenses, and the terms of your repayment plan determine this amount.

Chapter 13 payment plans can get legally complicated. If you’re considering filing this form of bankruptcy, speak with a bankruptcy attorney for free.

Common Questions About Filing Bankruptcy

Can I File Bankruptcy Without a Lawyer?

Yes. Filing bankruptcy without a lawyer is called filing pro se. Many people with simple Chapter 7 cases file on their own and successfully get a discharge.

A simple case usually means you have mostly unsecured debts. Examples include credit cards, medical bills, or payday loans. You also have little or no valuable property. You have no complicated financial transactions in the last few years.

If you’re considering filing on your own, you may want to:

• Read through the steps in this guide to see what’s involved
• Check your court’s website for its local forms and requirements
• Look into free or low-cost resources like local legal aid clinics

Bankruptcy paperwork can be detailed. Every court has its own local rules. Some people prefer to have a lawyer guide them through the process. An attorney becomes especially helpful if you own a home, have high-value assets, or are facing lawsuits.

What Is the Automatic Stay, and How Does It Help Me?

When you file for bankruptcy, the automatic stay goes into effect right away. The automatic stay is a legal protection that stops most debt collectors from calling you. They can’t send bills, garnish your wages, or take other actions to collect debt. It gives you immediate relief and space to move forward.

Does Bankruptcy Wipe Out All of My Debts?

Not all debts are erased in bankruptcy. Some debts are considered non-dischargeable. They usually can’t be eliminated in Chapter 7. Examples include child support, alimony, and recent tax debts.

If someone co-signed a loan with you, they’ll still be responsible for the debt. Your responsibility gets discharged, but theirs doesn’t.

Chapter 7 does wipe out several common types of debt, including:

• Credit card debt
• Medical bills
• Personal loans
• Payday loans
• Utility bills
• Old lease or rental balances

What About Student Loan Debt—Can That Be Included?

It depends. Student loans can be very hard to discharge, but not impossible. Federal student loans may be discharged if you meet certain hardship requirements.

Will Bankruptcy Ruin My Credit Forever?

Not at all. Your credit score might drop at first, especially if it was high when you filed. But most people rebuild their credit within a year or two.

Many people even end up with better scores than they had before filing. Those who focus on rebuilding their credit see the best results. If you need help, our partner Kikoff can help you build credit after bankruptcy.

How Often Can I File Chapter 7 Bankruptcy?

You can file Chapter 7 bankruptcy once every eight years. The timeframe is based on the date your last case was filed, not when it was discharged.

The time limit helps make sure the system is used fairly. But it’s not unusual for someone to file more than once. Life happens, whether it’s a job loss, medical emergency, or something else outside your control.

What Does Liquidation Bankruptcy Mean?

Chapter 7 is sometimes called a liquidation bankruptcy. But that term can be misleading. It sounds scarier than it really is.

It just means the court has the power to sell certain valuable property to repay your creditors. But the reality is different:

• More than 90% of people who file Chapter 7 keep all of their property
• Most essential belongings are protected by bankruptcy exemptions
• Examples include furniture, clothing, and often your car
• These exemptions are designed to help you keep the things you need to live and work

So while the term liquidation might sound harsh, most people who file don’t lose anything at all.

Is Bankruptcy Right For Me?

Chapter 7 bankruptcy is a powerful debt relief tool. But it’s not for everyone. It depends on your income, assets, and financial goals.

Chapter 7 might be a good fit if:

• You have low income or no income
• Most of your debt is unsecured (like credit cards, personal loans, or medical bills)
• You don’t have valuable property like a home you’re worried about losing
• You want to erase your debt quickly and move on

Chapter 13 might be better if:

• You have a regular income and can afford to make monthly payments over three to five years
• You’re behind on your mortgage or car loan and want to catch up over time
• You have non-dischargeable debts (like certain taxes or support payments) that you need more time to pay off
• You want to protect property like a home or expensive car that Chapter 7 might not fully cover with exemptions

Summary

Filing Chapter 7 bankruptcy on your own is possible. Many people do it successfully every year. It takes some time and organization. But the steps are manageable, especially if you have a simple case.

You’ll start by gathering your financial documents. You’ll take a credit counseling course and complete your bankruptcy forms. After filing your case with the court, you’ll mail documents to your trustee. You’ll attend your 341 meeting and finish a financial management course before receiving your discharge.

If you’re feeling unsure, you’re not alone. Speak with a bankruptcy attorney for free to discuss whether Chapter 7 or Chapter 13 is right for your situation.