How can you file bankruptcy without an income?

Personal bankruptcy can help individuals dealing with overwhelming debts such as mortgage, delinquent bills or garnishments. However, whether or not people are eligible to file personal bankruptcy depends on their financial needs and income.

Individuals can file bankruptcy by meeting certain bankruptcy criteria. For instance, people with no income must complete the means test. The test is actually a formula that determines if they have enough income to qualify for the chapter bankruptcy they want to file for. Typically, if individuals have enough disposable income, then they can file for chapter 13 and repay creditors the money owed. However, if they have little to no income, then filing chapter 7 is their best option.

Once people know which bankruptcy chapter they qualify for, the must complete pre-bankruptcy credit counseling. This means meeting with a credit counselor to over debt management options and make sure they are eligible for bankruptcy. The counseling is a one-time session and has a fee of approximately $50 depending on where people live. However, credit counseling agencies can waive the fee as long as participants tell them they need to complete a waiver fee form before the session starts.

Filing fees are also required when filing bankruptcy. The U.S. Bankruptcy Court allows individuals to waive fees and file their bankruptcy cases. However, the individuals must complete eligibility requirements.

Filing bankruptcy with no income doesn’t have to impossible. Speaking with a bankruptcy lawyer can help.