Can I File for Bankruptcy on My Own?

It is legally possible for individuals to file for bankruptcy without an attorney, a process known as filing “pro se.” While this approach can save on legal fees, it involves a complex legal undertaking requiring meticulous attention to detail. The bankruptcy process involves navigating specific rules, strict deadlines, and comprehensive financial disclosures. Understanding these requirements is essential for anyone considering managing their bankruptcy case independently.

Types of Individual Bankruptcy and Eligibility

Individuals primarily consider two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy, often termed “liquidation bankruptcy,” aims to provide a financial fresh start by discharging most unsecured debts, such as credit card balances and medical bills. A court-appointed trustee gathers and potentially sells the debtor’s non-exempt assets, using the proceeds to pay creditors. Many filers retain most of their property due to available exemptions.

Eligibility for Chapter 7 depends on passing the “means test,” which evaluates a debtor’s ability to repay debts. This test compares the debtor’s current monthly income to the median income for a household of comparable size in their state. If income exceeds the median, the test proceeds to assess disposable income by deducting allowed expenses. If the remaining disposable income is too high, the debtor may not qualify for Chapter 7.

Chapter 13 bankruptcy, known as a “wage earner’s plan,” allows individuals with a regular income to reorganize their debts and repay them over a three to five-year period. This option is suitable for those who wish to keep secured assets like a home or car and catch up on past-due payments. Under a court-approved repayment plan, debtors make regular installments to a trustee, who then distributes funds to creditors. Chapter 13 has specific debt limits for both unsecured and secured debts. Debtors must demonstrate sufficient disposable income to meet the proposed plan payments.

Gathering Information and Completing Forms

Preparing to file for bankruptcy requires gathering a significant amount of detailed financial information and completing numerous official forms. This preparatory phase is important, as accuracy and completeness are essential to avoid delays or dismissal of the case. Errors in paperwork can lead to serious consequences, including accusations of bankruptcy fraud if intentional misrepresentations are suspected.

Required information includes a comprehensive list of all assets, detailing each item’s description and estimated current market value. This encompasses real estate, vehicles, bank accounts, investment accounts, retirement funds, personal property, and household goods. Proof of value and ownership documents are often required for major assets. A thorough inventory ensures all possessions are properly disclosed on the forms.

Equally important is a detailed list of all debts, including secured debts like mortgages and car loans, and unsecured debts. For each debt, the creditor’s name, account number, and the exact amount owed must be provided. Obtaining a current credit report can help identify many outstanding debts, though some, like certain medical bills or personal loans, may not appear on credit reports and require separate tracking.

Income documentation for a specified period, often the last six months, is necessary. This includes pay stubs, tax returns, and proof of other income sources like unemployment benefits, Social Security, or rental income. A comprehensive breakdown of monthly living expenses, covering categories such as housing, utilities, food, transportation, and healthcare, must also be prepared. This detailed financial picture is used to complete various schedules within the bankruptcy petition.

Bankruptcy cases require the completion of specific official forms issued by the U.S. Courts. These forms are publicly available for download from the U.S. Courts website. Key forms include the Voluntary Petition (Form B 101), which initiates the case, and various schedules that detail financial information. These schedules require specific information on assets, secured creditors, unsecured creditors, current income, and current expenditures. The Statement of Financial Affairs asks about recent financial transactions, such as property transfers or payments to creditors.

Before filing, individuals must complete a mandatory credit counseling course from an agency approved by the U.S. Trustee Program. This course, typically lasting 60-90 minutes, must be completed within 180 days before the bankruptcy petition is filed. The counseling session aims to assess the debtor’s financial situation and explore alternatives to bankruptcy, such as debt management plans. Upon completion, an official Certificate of Credit Counseling is issued, which must be filed with the bankruptcy petition. Without this certificate, the bankruptcy case may be dismissed.

The Bankruptcy Filing Process

Once all necessary information has been gathered and the official bankruptcy forms completed, the next step involves formally initiating the case with the court. The completed bankruptcy petition and all associated forms must be submitted to the correct bankruptcy court jurisdiction, typically where the debtor resides or has their primary assets. This submission can often be done in person at the clerk’s office or by mail. Some courts may offer electronic filing options for individuals, though this usually requires specific account setups.

A filing fee is required when submitting the petition, which varies by chapter. If an individual cannot afford the fee, they may apply for a fee waiver or request to pay in installments. The court reviews the application for a waiver based on the debtor’s income, which must generally be below 150% of the poverty line. If the waiver is denied, installment payments are usually an option, typically requiring four payments over a few months.

A mandatory meeting, known as the “341 Meeting of Creditors,” is scheduled approximately 20 to 40 days after the petition is filed. This is not a court hearing with a judge but rather an informal meeting overseen by the bankruptcy trustee assigned to the case. The primary purpose is for the trustee to verify the debtor’s identity and to ask questions under oath about the information provided in the bankruptcy paperwork. Debtors should bring a government-issued photo identification and proof of their Social Security number. The trustee may also request recent pay stubs, bank statements, and tax returns for review. Creditors are permitted to attend and ask questions, though this rarely occurs in most consumer cases. The meeting typically lasts only about 5 to 10 minutes if the paperwork is in order.

After the 341 meeting, debtors in both Chapter 7 and Chapter 13 cases must complete a second educational requirement: a debtor education course, also known as a financial management course. This course focuses on personal financial management and is distinct from the pre-filing credit counseling. It must be completed with an agency approved by the U.S. Trustee Program after the bankruptcy case is filed. A certificate of completion for this course is necessary before a discharge of debts can be granted.

The outcome of a successful bankruptcy case is the “discharge” of debts. A discharge legally releases the debtor from personal liability for most debts, meaning creditors are prohibited from attempting to collect those debts. In Chapter 7, discharge typically occurs about 60 to 90 days after the 341 meeting, assuming all requirements, including the debtor education course, are met. For Chapter 13, discharge occurs after the successful completion of the three-to-five-year repayment plan. Certain debts, like most student loans, recent taxes, child support, and alimony, are generally not dischargeable in bankruptcy.