When you decide to file for bankruptcy, it means that you no longer have the ability to pay off your outstanding debts. Depending on your circumstances, you can file either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, where each offers settlement of your debts.
Sure, you can really file a bankruptcy on your own without an attorney, but it’ll involve a lot of things that can drain your time and energy. If you do not have the skills to follow the process, your application may not likely be approved, or it could even result in the seizure of your assets.
Hiring an attorney is actually pricey, but that’s not the end. In almost all states, there are free legal services or assistance that can help low-income individuals file a bankruptcy, but they cannot afford an attorney.
So, if you need them, this post will show you the details of how you can take advantage of free legal aid that can help you file a bankruptcy. Let’s start learning it below!
Can You Get Free Legal Assistance to File a Bankruptcy?
Sure, you can.
There’s no doubt that individuals who file bankruptcy, either Chapter 7 or Chapter 12, are unable to pay their debts. Of course, they also cannot afford a bankruptcy attorney, although they can help them through the process.
That’s why free legal aid is available. Bankruptcy courts in some jurisdictions offer free legal aid. They have pro bono attorneys who can help low-income debtors file for bankruptcy.
It’s important to note that the free legal services can vary depending on the state or jurisdiction in which you live.
How Can You Get Free Legal Assistance When Filing for Bankruptcy?
In most cities across the United States, there are dozens of non-profit legal aid offices that accommodate experienced “pro bono” attorneys. They’ll usually provide free legal assistance to individuals who are eligible to file for bankruptcy.
To get free legal service, you can contact legal aid agencies near your location, a bankruptcy lawyer, or a state bar association. They usually provide information about free legal assistance for individuals who want to file bankruptcy but cannot afford an attorney.
Also, you can contact your local bankruptcy court to learn about the services that they offer or to find out the list of free services or programs that are available in your area. This free legal aid is usually funded by donations from governments, bar associations, philanthropic foundations, and wealthy individuals.
Last, you can try to find a local free legal service near your location through the American Bar Association. In addition, the National Center for State Courts also provides links to your state supreme court, so you can find nearby legal resources, including self-help centers.
Do You Qualify for Free Legal Aid Help?
Getting free legal help to file for bankruptcy is quite complicated. Depending on the type of bankruptcy you want to file, either Chapter 7 or Chapter 13, you should truly prove that you meet every requirement set out.
It’s very important for you to know if you qualify for free legal services. You can find out by contacting the local legal aid service we have mentioned above.
Your income is one indicator of whether you qualify for this. In fact, the Bankruptcy Abuse Prevention Consumer Protection Act (BAPCPA) added income limits for Chapter 7 when they revised the bankruptcy laws in 2005.
If your income is below the state median income, you pass the “means test,” a test to find out whether your income is below or above the state median income (SMI), so you qualify for filing Chapter 7 bankruptcy.
According to federal poverty guidelines, people whose income is below 125% are eligible for free legal assistance when filing for bankruptcy.
In 2024, the federal poverty level for an individual will be about $15,060. If a family of four is making $31,200, So, if you make less than $15,060 as an individual or less than $31,200 if you have a family of four, you will likely qualify for free legal aid that can help you file for bankruptcy.
To convince them that you qualify for free legal help, you can provide supporting documents, including your pay stubs and tax return receipts that are part of the bankruptcy process.
Be sure to follow the process that applies to the legal aid agency because each organization has its own rules and guidelines.
Can You File a Bankruptcy Without an Attorney?
As long as your case is not complicated—in the case of filing for Chapter 7 bankruptcy—and you can handle it on your own, you can file for bankruptcy without an attorney.
However, the case of chapter 7 bankruptcy is simpler. For example, if your income is below the state median and you pass the means test, you may qualify for a discharge of your debts. And your creditors will not be able to collect any more debts from you after your Chapter 7 bankruptcy is approved.
But in some cases, filing for bankruptcy can be very complicated, and the help of an attorney is needed. If you don’t want to drag out the bankruptcy filing process, which will drain your energy and time, it’s best for you to try to get free legal aid.
Two Types of Bankruptcy that You Can File
When you file for bankruptcy, it will relieve you of the obligation to pay your debts. Depending on your goals, income, and property, you can choose the type of bankruptcy in accordance with your circumstances.
There are two types of bankruptcy that people usually file. Both work differently since each has benefits and settlements for debt cases. Here they are:
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- Chapter 7 Bankruptcy. This chapter is considered simple because the process is quite fast and does not require complicated requirements. The settlement usually takes about three to four months. Chapter 7 bankruptcy is intended for those with low incomes. In the process, it does not offer a payment plan, so you can keep your assets if you are behind on payments.
- Chapter 13 Bankruptcy. This chapter involves the process of a repayment plan. It allows you with a fixed income to develop a plan to repay all or part of your debts with the income you earn. That’s why this chapter is also called a wage earner’s plan. With Chapter 13 bankruptcy, you can pay back some of your debts, but you can also use it for car loans, mortgages, and other payments and still keep your assets.
Okay, those are two types of bankruptcy that you can file when you’re unable to pay off your debts. To make it easier for you to pass through the process, you can hire an attorney. But if you cannot afford it, you can try to get free legal aid assistance in your area.