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

Collect Your Documents To Assess Your Finances & Debts

If you're scared to take a deep look at your finances, remind yourself that this is the first step on the path to a fresh start. Your bankruptcy discharge will probably happen sooner than you think! Also, gathering your financial documents and getting organized for your bankruptcy filing can bring some order to what feels chaotic and out of control.

Start by getting a free copy of your credit report. You're allowed to get one free report every week from each major credit bureau (Equifax, Experian, and TransUnion). Your credit report is a great place to start understanding your current debts. It details your credit history and accounts including credit cards, lines of credit, home loans, car loans, student loans, and some personal loans.

But be advised: Some debts won't be listed 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 so you don’t have to look for the information when you’re filling out your bankruptcy forms. 

Next, gather these documents:

• Tax returns for the past two years

• Pay stubs or other proof of your income for the last six months

• Recent bank account statements

• Recent retirement account or brokerage account statements

• Valuations or appraisals of any real estate (home, property, land) you own

• Copies of vehicle registration

• Any other documents relating to your assets, debts, or income

You'll need a lot of this information to fill out your bankruptcy forms completely and accurately.

Take the Required Credit Counseling Course From an Approved Provider

Before you can file for bankruptcy, you must complete a credit counseling course from an approved provider. This is required for both Chapter 7 and Chapter 13 cases.

The course helps you explore whether bankruptcy — or another type of debt relief — is the right choice for your situation. It usually takes about an hour and can be done online, by phone, or (sometimes) in person.

You’ll need to:

• Take the course in the six months before you file your bankruptcy case

• Use a provider approved by the Department of Justice

• Submit the certificate of completion with your bankruptcy forms when you file your case... so keep it somewhere safe

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.

Complete the Required Bankruptcy Forms

Filing bankruptcy comes with a lot of paperwork. There are more than 20 required forms, and since some forms are several pages long, your total bankruptcy petition may be up to 70 pages.

The bankruptcy forms ask you about everything you make, spend, own, and owe. That is your income, expenses, assets, and debts. This will help the trustee and bankruptcy judge for your case understand your financial circumstances and whether you're eligible to file for bankruptcy. You'll also include information about your case, such as the chapter of bankruptcy you're filing and whether you're filing pro se (on your own) or with the help of a lawyer.

If you hire a lawyer, they will complete the forms for you based on the information you submit to their office. If you can't afford to hire a lawyer but don't feel comfortable completing the forms on your own, see if you're eligible to use Upsolve's free filing app or schedule an appointment with a legal aid provider in your area.

Get Your Filing Fee

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

If you don’t have the funds to pay the filing fee now, you apply to pay your fee in installments, after your case has been filed. You can ask to make up to four monthly payments. 

If you can't afford to pay even in installments, you can 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 for the fee waiver after you submit your bankruptcy petition.

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

Print and Double-Check Your Bankruptcy Forms

Once you have prepared your bankruptcy forms, you will need to 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 they are 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, but some courts require additional copies. So, before you head out to submit your forms, call your local bankruptcy court to find out how many copies you will need to bring and to confirm you have all the required local forms.

Go To Your Local Bankruptcy Court To File Your Forms

Once you enter the doors of your local courthouse, you will be greeted by security guards, who will ask you to pass through a metal detector. Once you pass security, you will go to the clerk’s office and tell the clerk that you’re there to file for bankruptcy. They will take your bankruptcy forms and your filing fee (or application for a waiver or to pay the fee in installments). 

While you wait, the clerk will process your case by scanning your forms and uploading them to the court’s online filing system. This usually takes no more than 15 minutes. 

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

• Your bankruptcy case number

• The name of your bankruptcy trustee

• The date, time, and location of your meeting with your trustee (this is called the meeting of creditors or 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. Check out Step 7 below for more info.

At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. This should bring tremendous relief, but you're not done yet. Continue on with the next steps.

Mail Documents to Your Trustee

The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. (Note that most bankruptcy filers keep all of their property because it's covered by exemptions.) Both Chapter 7 and Chapter 13 cases have a trustee.  

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, like tax returns, pay stubs, and bank statements. If you don’t send the trustee the requested documents following the instructions provided in their letter, your debts may not be discharged.

Take a Financial Management Course

After filing your bankruptcy forms, you will need to complete a Financial Management Course (also called a Debtor Education Course) from an approved credit counseling agency.

The debtor education course:

• Can be completed online or by phone

• Typically takes at least two hour

• Costs $10–$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 and get a fresh start if you don’t finish the course and file your certificate of completion from the credit counseling agency with the court. 

Attend Your 341 Meeting

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

💻 Most 341 meetings are held virtually via videoconference.

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

❗You must bring your government-issued ID and Social Security card to the meeting. If you don’t bring an approved form of both, the trustee can’t verify your identity and the meeting can't go forward. You should also bring a copy of your bankruptcy forms to the meeting, along with your last 60 days of pay stubs, your recent bank statements, and any other documents that your trustee has asked for. ❗ 

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 and 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 to pick it up.

  • You don’t need to take any additional action to surrender the car.

• 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.

  • This option can save money, but it only works if you have access to the full amount up front.