How to File for Bankruptcy without an Income

Those in financial trouble have several conflicting concerns making it difficult to decide if and when it is time to file for bankruptcy. For many today, their income is a big stumbling block. So many have been laid off and are without an income that filing for bankruptcy is more difficult than ever. There are fees and expenses, including the need for a knowledgeable bankruptcy lawyer. However, such a lawyer can help them make the crucial decisions about bankruptcy, including when to file.

When to File

Those who have already determined that their only relief from debt problems is bankruptcy have a second decision. Is there a right time to file, or does it matter? The truth is, it may matter a great deal, especially if the debtor has recently lost their job or if they are expecting additional bills in the near future.

Eligibility for chapter 7 bankruptcy is based on the filer’s median income for the last six months. If that income was high until a recent layoff, the average will be high. If they wait a few months, that average will be lower, making it more likely that they will be eligible for chapter 7.

If a debtor knows that additional debts will soon become due, it is important to wait until they can be included in the bankruptcy filing. Otherwise that debt cannot be dismissed and the debtor will continue to be accountable for it, with or without an income. Once a person files for bankruptcy, they are barred from doing so again for eight years.

How to File

For those with little or no income, there are alternatives to paying high filing fees all at once and paying an upfront retainer to a high-priced lawyer.

In some cases, bankruptcy courts will waive filing fees for those with an income below a specified amount. If it is still low, but above that limit, they may allow the filer to pay in installments

Bankruptcy attorneys will generally offer free consultations to help a debtor determine if and when to file for bankruptcy. They may also allow them to pay their lawyer’s fees in installments. In addition, they can help them obtain help from the court with their filing fees.

Getting Legal Help with Low Income Bankruptcy Filing

Those who are laid off and without a substantial income are often the most in need of bankruptcy help. Bankruptcy courts are often the ones to provide some measure of assistance to debtors in this situation. Once they work through the bankruptcy process, they may be in a position to start again and make those installment payments to the bankruptcy attorney who helped them experience bankruptcy relief and a new lease on their financial life.

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