If you are wondering how to File Chapter 7 with no Money then we got your back covered with our guide. One of the most difficult things in life is to find yourself in a financial position that is hard to deal with. For people who have a difficult time managing their finances, it can not only be difficult to pay their creditors back but also to manage their finances for their day-today expenses. For those who are struggling with such a predicament one of the best options that is possible is to file for bankruptcy. filing for bankruptcy is an administrative and a legal process. While it is not difficult to file for bankruptcy, one does need to have basic information and knowledge about the law to be able to handle the process easily and without any hitches. Bankruptcy is basically a process where a debtor declares that he is no longer has the ability to repay his debts to his creditors with liquid cash. Among the various types of bankruptcy processes that are there in the United States, the most common type of bankruptcy filing is a Chapter 7 filing.
People prefer to go in for a Chapter 7 bankruptcy filing because it gives them a way out to manage their financial situation. One thing that must be remembered is that if you want to know how to file chapter 7 with no money it is important to know how exactly the administrative process works and what you will have to do to file for bankruptcy under Chapter 7. This guide attempts to provide you information with how one can go about the process easy, and what exactly it will entail.
Do You Qualify To File For Bankruptcy Under Chapter 7?
The first thing to determine on your filing for bankruptcy under Chapter 7 is to check whether you are qualified and eligible to file for bankruptcy under this chapter in the first place. one of the things that must be remembered is that Chapter 7 bankruptcy filings are actually much more popular than bankruptcy filings under any other chapter of the law. Almost 60 to 70% of all filing for bankruptcy are under Chapter 7. Chapter 7 bankruptcy filings can also be turned as liquidation filings because your assets are liquidated in order to pay off your debts. These debts are usually unsecured debts, and can include debt such as credit card debt, medical debt, personal loans, etcetera.
The first step to take if you are planning to file for bankruptcy under Chapter 7 is to check whether or not you are eligible to file under chapter 7:00 in the first place. You will be required to pass a means test to file for bankruptcy under Chapter 7. A means test basically refers to an examination of the financial status of the person who wishes to file for bankruptcy. Depending on which state you belong to and what jurisdiction it falls under, there may be different limits to file for bankruptcy based on the level of your income. Some rules related to debt may also be present.
Under a Chapter 7 bankruptcy filings there are both exempt properties as well as non-exempt properties. To offset the dead that you have taken upon yourself usually the non-exempt properties will be sold and liquidated in order to repay your debts. Usually, personal property such as the dwelling house your car and equipment, or sentimental pieces of jewellery are exempt properties. It must be kept in mind that a Chapter 7 bankruptcy process can be quite a time consuming and the person who wishes to file for bankruptcy under Chapter 7 must remember this.
Benefits of filing for bankruptcy under Chapter 7
If you are planning to file for bankruptcy under Chapter 7 it helps to know what the benefits of filing for bankruptcy under this chapter are. There are a number of advantages of filing for bankruptcy under the Chapter 7 process. Here are some of the major advantages of filing for bankruptcy under Chapter 7.
Prevent forceful and illegal collection by lenders
While it is the duty of the debtor to repay all his debts in a timely manner, certain circumstances may result in a debtor not being able to repay the loans he has taken. In such a scenario, The debtor may be forced to repay the amount even if he does not have enough money to do so by force by the creditors. This is one of the reasons as to why it helps to file for a Chapter 7 bankruptcy because once the bankruptcy court orders a stay creditors will no longer be able to force the debtor to repay the amounts, and the debtor will have the freedom to repay the debt either by selling his assets or on the basis of an installment based payment scheme. This provides both protection to the debt of from being forced to repay the money and also to the creditor by ensuring that he can get the money that he deserves back.
It is a simple process to proceed to file for bankruptcy under Chapter 7
Legal terms when it comes to bankruptcy may be a complicated process to understand. however, somebody who wants to file for bankruptcy should do their research to understand how the law works and take steps in order to ensure that their bankruptcy filing process goes smoothly. in comparison to filing for bankruptcy under any other chapter, a Chapter 7 bankruptcy filing is fairly easy to do because it is mostly an administrative process. aspects such as payment of the debt, the system of default, repayment schedules, and necessary lawsuits are brought together under the single head of a Chapter 7 bankruptcy filing. One aspect that must be kept in mind when somebody is filing for bankruptcy under Chapter 7 is that even though the process may be simple to conduct it can still affect the credit history of the debtor in a negative way. however, as long as one does their research and acquaints themselves with how the bankruptcy process works and how the filing must be done, they will find that filing for bankruptcy under chapter 7 is not at all complicated or difficult.
Helps to organize yourself financially
One of the biggest advantages of a Chapter 7 bankruptcy filing is the fact that you have to undergo credit counseling for the bankruptcy process to formally end. given that one of the biggest reasons and causes for someone finding themselves in debt hey is poor financial management and filing credit counseling can be of tremendous help to such people and help them reorganize and take charge of their finances. By undergoing the credit counseling process one cannot only understand better financial planning and management but can also understand as to how to improve their credit score and the credit reports.
Credit counseling deals with not just the management of debt but also deals with how you will manage your finances in the future. Therefore credit counseling will touch upon subjects such as how much of an interest rate is viable to pay and whether or not you should take loans in the first place. By undertaking credit counseling you will be much more responsible with your finances.
Saving your personal property and assets
Even if you file for bankruptcy under Chapter 7 there may be certain assets that you own which you wish to protect. Not retaining ownership or possession of these assets may affect your quality of life and your day today activities. Usually, the assets that people want to keep exempt from their bankruptcy process are assets such as their dwelling house and their car. Furthermore given that your salary can also be garnished to repay your debts in a normal situation, by filing for bankruptcy you can also ensure that your salary remains protected from being recovered to repair your debts.
While there may be certain negatives to filing for bankruptcy under the Chapter 7 process, If you exercise financial prudence and if you organize throughout the entire process properly, then you can ensure that the entire process goes on smoothly. One thing that must be kept in mind that a credit report usually retains the credit history of an individual for up to 10 years, and it might be preferable to get rid of your credit cards or make smaller and timely payments instead and to improve your credit score swiftly and easily.
Options To File Chapter 7 With No Money
The reason as to why somebody will be filing for bankruptcy in the first place is because they are short on finances. in such a situation it may seem counter-intuitive, but the fact of the matter is that you will have to pay a certain amount of filing fees to even file for bankruptcy. For someone who does not have any savings in order to do so, the process may seem daunting and impossible. However, there are certain options that somebody without money can exercise as well.
Judgment proof
there are certain sums of money which are judgment proof. this means that there are certain sources of income and there are certain assets that cannot be garnished in order to repay your loans. This protected income and these assets are termed as judgment proof. If your personal belongings are also less than $2000 in totality, you can protect these personal belongings as well. If you manage to get judgment proof you do not have to file for bankruptcy under Chapter 7. hey the credit of the usually duly notified as to the fact that you’ve got judgment proof and that you are discharged from repaying the amounts that you are obligated to repay. However, if there are any chances that your financial situation will improve within the next 10 years it is very unlikely that you will get judgment proof.
Discounted or Pro-bono legal help
For those who want to approach the bankruptcy process with legal representation but do not have the money to hire legal representation or the services of a lawyer, hey one option that they can take is to approach the local legal aid cell or a legal aid group which will be able to provide representation to them either for free of cost or at a discounted rate. You can search up local legal aid groups in your vicinity and find one which will be able to guide you through the process of bankruptcy or provide representation to you to ensure that the process goes smoothly. However, to qualify for free legal representation, you will have to ensure that your level of income does not cross the demarcated and determined line of poverty.
Waiving fees for filing for bankruptcy under Chapter 7
If the court finds that you cannot even afford to pay the filing charges that are required to file for bankruptcy under Chapter 7 as long as you meet the eligibility criteria the court may decide to waive the fees for filing for bankruptcy under Chapter 7. what you will have to do if you want the fees to file for bankruptcy under Chapter 7 to be waived is to, first of all, provide financial documents that indicate that your income levels are too low for you to be able to afford the filing fees. You will also be required to prove that you are under the poverty line that has been demarcated. The court me required for you to submit various documentation that demonstrates aspects such as the level of your income, your expenses, the assets that you own, as well as your estate. However, by providing such documentation you can easily get a fee waiver as long as you meet the eligibility criterion.
If you are planning to file for a Chapter 7 bankruptcy N sure that you cut down on unnecessary spending which I lead to a drain on your savings. also and sure that you can try and figure out another method to pay for your expenses and that you end up saving your next pay check completely to pay for legal representation to guide you through your bankruptcy process. It is important that when you are filing for bankruptcy you have the necessary documents to show that you are in dire straits financially. if you currently do not have enough and sufficient funds to pay for the services of an attorney and you believe that you cannot take on the bankruptcy process yourself, ensure that you save enough money to be able to afford a lawyer.
Filing for a Chapter 7 bankruptcy without the assistance of an attorney
When you’re already undertaking a bankruptcy process it is very unlikely that you will have enough funds and sufficient savings to pay for the services of an attorney. Furthermore given the fact that there are costs for filing as well usually amounting to about $400 it is very unlikely that a person who is already short on finances is able to hire a lawyer to represent them. If you find yourself in such a predicament it may be ideal for you to undertake the bankruptcy filing process by yourself. While it is not difficult to file for bankruptcy it is important to remember that it is an organised administrative process and therefore it is important to approach it in an organised manner.
Bankruptcy Waiver Plans
If your income levels are really low and you are unable to repair your dad’s you can look into a bankruptcy waiver plan. This 120 installment scheme is an ideal boon for those who want to escape their debts hey and repay their creditors eventually. you can also get a fee waiver under this scheme if you apply to the court for it. It is important to remember that you will be required to submit documentation that attests to your low levels of income. One figure that is helpful to remember is that the wealth of the income of the family should be at least 150% below the line of poverty.
File for bankruptcy under Chapter 7 by yourself
If you do not have enough funds to pay for an attorney or want to go through the process yourself you can always file for bankruptcy under Chapter 7 on your own too. Here are some of the important steps that you will need to keep in mind if you plan to file for chapter 7 bankruptcy by yourself without the assistance of an attorney.
Make sure you know which chapter you are filing under
One of the first things to remember that there are many chapters under the Bankruptcy Code for instance you can file for bankruptcy under Chapter 11, under chapter 12, under chapter 13, and under chapter 7. Looking towards each of these chapters entail and decide which chapter is more suitable for you to file for bankruptcy under. If you are going to face a means test, it will be easy for you to determine as to which is the most suitable chapter for you to file for bankruptcy under.
Get information on exemptions depending on the jurisdiction of your state
If you wish to say certain property and your personal income such as a salary from being garnished in order to repair your debts, ensure that you get necessary information about exemptions that you can seek to protect the property that you wish to secure. Creditors will not be able to sell exempt properties to recover debt amounts.
Collect required documentation for filing for a chapter 7 bankruptcy
Another thing that you will have to do if you wish to file for a Chapter 7 bankruptcy is to collect and organise all the documents required for the process. This includes documents such as your bills, your salary slips, and details of your assets, income, and expenses. Depending on which state you belong to and the order of the court the documentation that is necessary may vary. You will have to submit accurate documentation and provide information that is truthful and honest. if you submit incorrect information or information that you know to be untrue your application for the bankruptcy filing may be rejected.
Participate in the creditors meeting
A creditors meeting is a meeting wherein you the creditors and the trustees of the bankruptcy process usually meet to discuss the bankruptcy plan. If the creditors have any questions or doubts with regard to the process that you have suggested it is at this meeting that they make these doubts known. Ensure that you are yourself with all the information that is required to answer potential questions from the creditors as well as the bankruptcy trustees. Also, ensure that the information that you are providing at this meeting is factually correct.
Attend Court summons and appointments
Given that bankruptcy is a legal process you may be required to attend court sessions occasionally. this may even be the case if you hire an attorney. If you do not hire the services of an attorney and wish to deal with the process yourself, you could do that too. However, it is good to remember that you will probably take on less of a burden upon yourself if you hire the services of an attorney.
Rebuild your finances after the bankruptcy process
One of the most important things after a bankruptcy process gets over is to ensure that you rebuild your finances. This is to make sure that you do not find yourself in the same financial predicament again. There are many steps you can take in order to ensure that you rebuild your finances in an effective manner. Ensure that you plan your finances and organise it in a manner that will not lead to disaster in the future. If you are going to undergo credit counseling from a reputed agency, keep the advice that the credit counseling sessions provide and try to implement them in your day to day life with regards to your finances.
Be focussed on your savings account
What your earning does not matter as much as how much you spend what you are earning. Your expenditure should always be lower than the amount that you earn. Ensure that you also save a little bit of whatever your earning for a rainy day. It can help avert financial disaster and prevent a situation where you will have to file for bankruptcy from recurring.
Rebuild your credit
Another important and extremely helpful thing for you to do once you have completed your bankruptcy process is to rebuild your credit score. There are many advantages of a high credit score such as lower interest rates and a higher probability of getting your loan sanctioned. It must be kept in mind that if you are undergoing a Chapter 7 bankruptcy process, your previous credit score will be maintained for a period of 10 years. However, this does not mean that within those 10 years you cannot improve your credit score. Ensure that you come up with an organised plan as to how to improve your credit score and stick to it. Even taking simple steps such as repaying your credit card debt in a timely manner can play a significant role in improving your credit score. While this might time to achieve, certainly if you keep at it with perseverance in no time your credit score will significantly improve.
Invest as much as possible
One of the best ways to improve your savings and to ensure that you have enough security for a future situation where you might find yourself in an unstable financial position is to invest your savings in a secure manner. Ensure that you invest your savings for higher returns, and you will find that it will help you improve your financial position significantly.
Use your debit card wisely
Another thing that you must do and keep in mind is that if you have a debit card, try and use the debit card as little as possible. hey while most debit card companies do offer a variety of perks to their users, try and limit your credit card use for payment of only items that are essential such as for food and groceries. Try and use cash wherever possible and limit the use of credit until your financial situation improves. Irrespective of whether you are using a debit card, cash, or a credit card, it is important to ensure that you plan your finances out in a manner that suits your level of earning. Budgeting significantly helps ensure that you are saving money and not spending more than your earnings.
Conclusion
While bankruptcy is an unfortunate situation to find yourself under the whole idea of bankruptcy is to allow you to start off on a clean slate financially. hey there 4 by filing for bankruptcy not only can you solve your old financial troubles, but you can also ensure that you do not find yourself in the same situation again. You can either file for bankruptcy yourself or with the help of a lawyer. While it is certainly cheaper to go about the process yourself, filing for bankruptcy with the help of an attorney can help ease the burden that you will have to take upon yourself.
