How to File for Chapter 7 Bankruptcy with No Money?

File for Bankruptcy How to File for Chapter 7 Bankruptcy with No Money?

How to File for Chapter 7 Bankruptcy with No Money?

Chapter 7 bankruptcy can help individuals with large sums of unsecured debt get back on their feet. But it can be an intimidating process, especially for those with little to no money for legal assistance. You may be wondering if it is possible to file for chapter 7 bankruptcy with no money.

Luckily, you don't need money to file for chapter 7 bankruptcy. It's possible to file on your own, but that doesn't mean it is easy.

Bankruptcy is a highly complicated process, with many steps. All steps need to be completed in order, or your bankruptcy declaration may not be approved by the court. DoNotPay has an easy way to help.

What is Chapter  7 Bankruptcy?

Chapter 7 bankruptcy is for discharging an unsecured debt. It does not include debt that is secured with collateral.

The table below explores secured debts and unsecured debt.

Type of debtExamples
Unsecured Debts
  • Credit card debt
  • Medical bills
  • Utility bills
Secured Debts (Always have collateral)
  • Mortgage
  • Auto loans
  • Some liens

Chapter 7 bankruptcy will allow you to liquidate non-exempt assets to pay off debts. Any debt left over after the liquidation will be discharged, leaving you free from the debt.

There are some negatives to chapter 7 bankruptcy, including:

  • Losing assets, including jewelry or valuable collectible items
  • Chapter 7 stays on your credit report for 10 years

What are the Income Requirements for Chapter 7 Bankruptcy?

Not everyone can file for chapter 7 bankruptcy. To file for chapter 7, you must meet one of the following income requirements:

  1. Your average monthly income must be less than the state average of the state where you live OR
  2. You must pass a "means test" designed to examine your disposable income level

If you don't meet the requirements for chapter 7 bankruptcy, it is still possible to file for another kind of bankruptcy, like chapter 13. DoNotPay can help determine what kind of bankruptcy you should file for.

How to File for Chapter 7 Bankruptcy with No Money 

Even though you may feel like you have no money, you may have valuable assets. Filing for chapter 7 bankruptcy means that you must agree to liquidate these assets to pay for the debt.

Exempt vs. Non-Exempt assets

Usually, things like primary residences and cars are considered exempt assets. However, exempt assets vary by state, and some states limit the value of the assets you can exempt. That means you won't be able to add everything to your exempt list.

"No Asset" bankruptcy 

You don't need assets to file for chapter 7 bankruptcy. If you have no money and nothing to liquidate, you can still file for chapter 7. In fact, chapter 7 is designed for just that. If there are no assets to liquidate, your debts will be discharged.

Assets or not, you'll still need to painstakingly follow every step of the bankruptcy filing process perfectly. Any mistake may mean starting over. DoNotPay can help make sure you do everything right.

Filing for Chapter 7 Bankruptcy with DoNotPay 

If you want to file for chapter 7 bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:

  1. Search for File for Bankruptcy on DoNotPay.


  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.


  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.


  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.


  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.


And that's it! Once done, the court will give you:

  • Your bankruptcy case number
  • The name of your bankruptcy trustee
  • The date, time, and location of your meeting with your trustee

At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course.

Why Use DoNotPay to File For Bankruptcy?

There are a lot of reasons to use DoNotPay to file for bankruptcy. The service is:

  • Fast. Filing for bankruptcy on your own takes research, which takes time. DoNotPay's bankruptcy solution takes research out of the equation, so you can get started fast.
  • Easy. Bankruptcy paperwork alone is more than 70 pages long. DoNotPay can give you a head start on the process in just five steps.
  • Successful. DoNotPay's bankruptcy product really works.

Bankruptcy is an important step in your financial recovery. Don't guess at the process. Do it right with DoNotPay.

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