Filing Bankruptcy

If you are in a financial situation where you cannot afford to pay off your debt, and you are struggling financially, you might find yourself asking the question, "Can I file for bankruptcy for free?"

Filing for bankruptcy is an expensive process as there are three main fees you need to pay. The first fee is for credit management classes. The new bankruptcy law states that if a person wants to file for bankruptcy they must first go to financial management classes to try and sort their finances out without having to declare bankruptcy. The second cost involved is paying for an attorney. This can be very expensive and is probably the most expensive cost involved regarding bankruptcy. The last cost is the filing costs that you need to pay to the court. These fees are usually around $300.

Corporations have to have an attorney when filing for bankruptcy but individuals do not. The problem with representing yourself is that if you make a mistake like forgetting to submit a document then you could affect your rights as a debtor. It is always recommended to have legal assistance. If you cannot afford legal advice you should contact your state and local bar office as they might be able to offer pro bono services to you so you will not have to pay.

The classes for financial management cost around $50 and this is very difficult to get around, however it can be done.

The main fee of filing for bankruptcy can be avoided, but it is only waived for a very small percentage of people. Your financial status will be interrogated before they will make a decision. There is a section in the bankruptcy code that allows these costs to be waived. If you want to request a free filing you can do so by filling out the applicable forms that can sometimes even be downloaded off the internet from your state and local agencies.

Keep in mind that filing for bankruptcy can have a negative effect on your credit rating, but this may be your only option. You will need to rebuild a new credit rating from the ground up. Steer clear of services that offer to remove your bankruptcy filing from your credit rating, this may be illegal and could have severe consequences.

So yes it is possible to file for free. The process is difficult and you should really try and get free legal assistance if you cannot afford it.