Chapter 7 Filing with No Money: A Comprehensive Guide

Chapter 7 is a form of bankruptcy that has different kinds of associations with debtors to pay off their debts. Like it takes the liquidation of the debtor’s assets to pay the debts. It is such a type of bankruptcy that is not only used by individuals but corporations, business entities, and partnerships as well. Chapter 7 Filing with No Money Here is the Guide.

In the way of the process when someone files Chapter 7, a trustee takes a deep observation of it and takes a look at all the documents and necessities needed for it. He examines the assets. And try too much as possible debts from it. When all the assets of a person get liquified, all debts are still not paid. Then that debt gets discharged and the debtor is no longer responsible to pay that debt further. 

If we want to file for Chapter 7 then there is some fee that is need to be paid. Here in this article, we are going to know how can we make it file without money. To know all about it, take all the guidelines and important information described below. 

Cost of Chapter 7 

The cost for the filling of Chapter 7 is variable, which is actually a combination of a lot of other fees.  And dependant on many factors as well. Here are the factors on which the cost of Chapter 7 is dependent. 

• When you file your petition the standard fee that you pay to bankruptcy is $335. 
• Before filling out the application, it is good to complete your course of credit counseling. And most of it varies. That could range from 20 to $50. 
• It is also needed to hire an attorney for the filling of the application. And the fee of each attorney is variable. That depends upon his experience, reputation, and location. But on the average range of attorney for this purpose is from 2000 to $3500. 
• Some additional costs could also be on it that depends upon the situation. Like some fees for copies and appraisal. 

Chapter 7 Filing with No Money Bankruptcy

If you are thinking to fill Chapter 7 bankruptcy without money, it is also possible. That could be done if you don’t hire an attorney and manage the steps on your own. Following is the process:

• Assemble all the necessary documents and forms. Like schedules, financial affairs, and all others as well that are required. 
• For an approved provider take a credit counseling course. To have a smooth running of the process. 
• Complete the filling of all the forms and submit them to the bankruptcy office of your area. 
• Once all the documents have been submitted, the next step is to attend the meeting. Which trustee will ask a few questions from you. That will be about your financial conditions. 
• As all other steps are done, complete the debtor education. And find out about the discharging of your debts. 

Alternatives of Chapter 7 

For the application of Chapter 7 Filing with No Money, there are some eligibility conditions . that a man should fill to make it apply. If some guys are not eligible for it these are some alternatives of it.

• Chapter 13 bankruptcy
• Debt consolidation 
• Debt settlement 
• Credit counseling 

All of these are good to use. But each of it has its own features. And obsessed with certain advantages and disadvantages. But could charge a high value of interest rate and payments could be longer. Have a keep understanding of the conditions of all of these to know which one suits you the best. 

Who are not eligible for a free filling waiver 

As chapter 7 is available for individuals, corporations, and partnerships. But there are some conditions that are good to fill in before the application of Chapter 7. To know the eligibility criteria know the following conditions. 

• It is a must pass the means test for the application of Chapter 7 Filing with No Money. This test is actually for the comparison of your income to the median income. And if your income is higher than the median income then you can apply for this only. 
• If you already have filed Chapter 7 for the discharging of your debt in the previous 6 or 8 years, then you are not eligible to apply for it. 
• If you have a sufficient amount of disposable income through any medium or plan, then you are not eligible for the application of Chapter 7. 
• If you are engaged in any kind of misconduct it is not possible to apply for bankruptcy of Chapter 7. 

After getting all of these guidelines, you can find out whether you are eligible or not for the application of Chapter 7. If something here is against you then it is good to find the best alternative to it. 

FAQs