Claiming bankruptcy can be one of the most liberating debt relief options available, though actually going through the process can also be quite stressful and time-consuming, not to mention expensive. In fact, the average bankruptcy claim costs between $1,000 and $1,500 once filing fees and attorney-related fees are assessed. Although hiring an attorney will always account for the bulk of the fees, there is a mandatory filing fee of about $300 that is assessed by the US Bankruptcy Court. Because most debtors are unable to shell out the money required to file a claim, many wonder how to go bankrupt for free.
Free Bankruptcy – Is It Possible?
Despite what you might have heard, going through the personal bankruptcy process without paying any fees is almost unheard of. Although certain fees are often waived for low-income filers, almost every debtor is required to pay the filing fee of $300. Although it’s not practical for most debtors to assume that they can file for free, there are some steps that can be taken to save a considerable amount of money, some of which are listed below –
• Low Cost Legal Representation – one of the best ways to save money on bankruptcy is to hire a cheap bankruptcy attorney. A cheap attorney can often save you up to 50% over hiring a “traditional” lawyer. Plus, there are lots of reputable discount attorneys out there if you know where to look. The key when choosing a bankruptcy attorney is to set up an initial consultation where you can get to know a particular individual before deciding to work with them. It’s also a good idea to stick to firms and individuals who have built a solid track record of success.
• Petition Preparers – a bankruptcy petition preparer is someone who can assist with the unpleasant task of document preparation. Although a petition preparer cannot legally offer advice or representation, hiring one can be a great way to eliminate the hassle that comes with gathering information and filling out mountains of forms.
• File On Your Own – it is possible to file bankruptcy by yourself, though you will have to learn a bit about the requirements and individual steps in the filing process before making the decision to do so. Fortunately, we have all the information you will need in our guide on how to claim bankruptcy.
Ultimately, the question shouldn’t be how to go bankrupt for free, but instead how to go bankrupt responsibly. The bankruptcy process is all about setting yourself up for the future, and while it might be painful to shell out money just to get out of debt, the decision will likely pay off over the long run.
For more information on filing bankruptcy, please feel free to browse through our comprehensive site. We even offer a free bankruptcy evaluation for those who want to know whether or not bankruptcy can help them escape their debt spiral.