Too Broke To File? Here's Your 2025 Guide To Bankruptcy Options

Bankruptcy might sound like a last resort — and in many ways, it is. But for those facing crushing debt, mounting bills, and the stress that comes with financial hardship, it can also be a lifeline to relief, stability, and a second chance.

The challenge? Filing bankruptcy can be expensive. In fact, some people find themselves too poor to afford the process designed to help them out of poverty.

Here’s how to navigate your options in 2025 — including low-cost and free solutions — and what to expect if you’re considering Chapter 7 or Chapter 13 bankruptcy.

What Is Bankruptcy? A Quick Breakdown

Bankruptcy is a legal process where individuals or businesses can eliminate or restructure debt under the protection of a federal court. The two most common types for individuals are:

Chapter 7 – “Liquidation” bankruptcy that wipes out most unsecured debts (like credit cards, personal loans, medical bills).

Chapter 13 – A court-approved repayment plan that lasts 3–5 years, allowing you to catch up on certain debts over time.

Both stop creditors from harassing you, prevent wage garnishment, and can delay — or even stop — foreclosures and repossessions.

How Much Does It Cost to File Bankruptcy?

Unfortunately, even though bankruptcy is meant to help people who are broke, it’s not free by default. Here’s a typical breakdown of costs:

Chapter 7 filing fee: $338

Chapter 13 filing fee: $313

Credit counseling courses: ~$50–$100 total

Attorney fees:

Chapter 7: $1,000–$1,800

Chapter 13: $2,500–$4,000 (but often paid over time)

Good news: There are ways to reduce or waive these fees — or even file without a lawyer if necessary.

Free or Low-Cost Options for Filing

✅ 1. Fee Waivers for Filing Costs

If your income is below 150% of the federal poverty level, you may qualify to have your court filing fee waived completely. File Form B3A with your petition.

✅ 2. Pro Bono Bankruptcy Lawyers

Many legal aid organizations offer free representation or reduced-cost help. Start by contacting:

Legal Aid Society

Local Bar Association

Upsolve.org (a nonprofit helping you file Chapter 7 without a lawyer)

✅ 3. DIY Bankruptcy Filing

While hiring an attorney is ideal, many people successfully file pro se (on their own). It’s more complex, but services like:

Upsolve

Nolo’s Bankruptcy Toolkit

LawHelp.org

…offer step-by-step guides and forms.

Make sure to follow all court instructions carefully — mistakes can delay or even dismiss your case.

Who Qualifies for Chapter 7?

To file Chapter 7, you must pass the means test — a calculation comparing your income to your state’s median. If your income is too high, you may have to file Chapter 13 instead.

But many low-income individuals, seniors on fixed incomes, or those recently unemployed automatically qualify.

Chapter 7 can eliminate:

Credit card debt

Medical bills

Payday loans

Utility arrears

Old rent debts

It won’t erase student loans (in most cases), back taxes, or child support obligations.

Can You Keep Your Car or Home?

Often, yes. If your equity in the asset is below your state’s exemption limit, you can keep it. For example:

Many states allow you to exempt $5,000–$25,000 in home equity

Cars with low or no equity are usually safe

Still, every situation is different. A free consultation with a lawyer can help clarify what you’ll keep or lose.

What Happens After You File?

Here’s what you can expect:

Automatic stay – Creditors must stop all collections

Meeting of creditors (341 hearing) – You answer basic questions under oath

Discharge (Chapter 7 only) – Usually granted in 3–4 months

Credit impact – Bankruptcy stays on your report for up to 10 years, but many people see their credit start to rebound within 12–18 months

What If You Can’t Afford a Lawyer?

You're not alone. Thousands file every year with:

Help from nonprofits

Court-approved filing guides

Local law school clinics offering free legal services

Don’t let fear or money stop you. If you're struggling, there’s help out there — and bankruptcy might be your best path forward.