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Can't Afford Bankruptcy

What to Do If You Can’t Afford to File Bankruptcy

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Need to File Bankruptcy But Can’t Afford It?

Are you facing financial hardship and considering bankruptcy as a solution? If you’ve ever thought, “I need to file bankruptcy but can’t afford it,” you’re not alone. Fortunately, there are practical ways to file for Chapter 7 or Chapter 13 bankruptcy even with limited funds. This guide explores options like fee waivers, payment plans, and resources to make bankruptcy accessible when money is tight.

Apply for a Chapter 7 Filing Fee Installment Payment Plan

Filing for Chapter 7 bankruptcy requires a court filing fee, currently set at $338 by the U.S. Courts (subject to periodic adjustments). If you have a steady income but can’t pay this amount upfront, you can apply to pay the fee in installments. The Application to Pay Filing Fee in Installments allows you to propose a plan to spread the cost over time.

You’ll need to provide details such as your income, expenses, family size, and, if filing jointly, your spouse’s information. The court permits up to four payments within 120 days from the filing date. Here’s an example payment schedule for a case filed on April 1:

  • $88 paid on April 1 (filing date)
  • $85 paid on May 1
  • $85 paid on June 1
  • $80 paid on July 1

After submitting your application, the court will review it. A hearing may be scheduled, and if approved, you must adhere to the plan—missing a payment could result in your case being dismissed. This option works well if you’re employed but short on immediate cash.

Apply for a Chapter 7 Filing Fee Waiver

If paying in installments isn’t feasible, you might qualify for a full fee waiver. Using the Form 103B Application for Waiver of the Chapter 7 Filing Fee, you can request the $338 fee be waived entirely. You’re eligible if:

  • You’re an individual filer (businesses don’t qualify).
  • You’re filing under Chapter 7.
  • You can’t afford the fee, even in installments over 120 days.
  • Your household income is less than 150% of the federal poverty guidelines for your state (check current guidelines for your area).

To apply, you’ll submit information about your family size, income, expenses, cash on hand, bank balances, and property values—matching your bankruptcy Schedules I, J, and A/B. You’ll also disclose prior bankruptcy filings and attorney fees paid, then explain why you can’t cover the fee. The court may:

  • Grant the waiver outright.
  • Schedule a hearing for you to attend.
  • Deny the waiver and impose a payment schedule instead.

Economic pressures like inflation and rising living costs make this option increasingly relevant for those below the poverty threshold.

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How to Pay Chapter 7 Attorney Fees

Attorney fees for Chapter 7 typically range from $1,200 to $2,500, depending on your location and case complexity. Many bankruptcy attorneys offer payment plans to spread this cost, but the full fee must be paid before filing. Why? Unpaid fees at filing could be discharged as unsecured debt, leaving your attorney unpaid—something they’ll avoid.

Apply for a Pro Bono Chapter 7 Attorney

If attorney fees are out of reach, pro bono (free) legal help is available through legal aid organizations in every state. Eligibility depends on income, often set at 125% to 200% of the federal poverty line. Contact your local Legal Services Corporation (LSC)-funded provider to check qualifications. If approved, your pro bono attorney can also help file for a fee waiver or installment plan, further reducing your costs.

Represent Yourself Pro Se

Filing Chapter 7 “pro se” (on your own) eliminates attorney fees, but it’s not for everyone. Simple cases—such as those with credit card debt, medical bills, no real estate, and no priority debts like taxes or child support—might be doable solo. Complex cases involving businesses, significant assets, or fraud allegations require professional assistance.

Going pro se means you’ll manage everything: completing forms, researching bankruptcy law, meeting the Chapter 7 Trustee, and facing creditors at the 341(a) meeting. Errors can lead to dismissal. Data from the American Bankruptcy Institute shows pro se filers succeed less often—about 65% get a discharge, compared to 95% with attorneys. If you’re unsure, the risk might not be worth the savings.

How to Pay Chapter 13 Attorney Fees

Chapter 13 bankruptcy revolves around a 3- to 5-year repayment plan, making it ideal if you earn too much for Chapter 7 or need to catch up on debts like:

  • Mortgage or auto loan arrears.
  • Alimony or child support back payments.
  • Tax debts, government fines, or student loans.

The filing fee for Chapter 13 is currently $313, and attorney fees typically range from $3,000 to $5,000. The good news? Most attorneys allow part or all of their fees to be paid through the repayment plan, so you pay them over time alongside creditors. This flexibility makes Chapter 13 accessible, though crafting a plan—accounting for arrears, interest, and Trustee fees—requires expert help for court approval.

Rising interest rates and housing costs have made Chapter 13 a popular choice for homeowners aiming to save their properties while managing debt. An attorney ensures your plan meets court standards and maximizes relief.

Modern Options and Resources

Bankruptcy filing has evolved with technology. Many districts now offer online filing, reducing logistical hassles. Nonprofit credit counseling agencies (required before filing) provide free or low-cost sessions, often virtually, to explore your options. Websites like uscourts.gov offer updated guides and forms, while tools like Upsolve provide free assistance for pro se Chapter 7 filers with straightforward cases. Explore these resources to lower costs and simplify the process.

Need your pre- or post-filing bankruptcy certificate? Money Fit offers convenient online bankruptcy counseling to get your required certificates—visit Money Fit Bankruptcy Counseling to learn more.

Frequently Asked Questions About Affording Bankruptcy

Can I file bankruptcy if I have no money?

Yes, you can file with little or no money by applying for a Chapter 7 fee waiver or installment plan, or by including Chapter 13 attorney fees in your repayment plan. Options like pro bono legal aid or filing pro se can also help.

What happens if I can’t pay the Chapter 7 filing fee?

If you can’t pay the $338 fee upfront, you can request an installment plan (up to 120 days) or a full waiver if your income is below 150% of the poverty guidelines. Missing installment payments risks case dismissal.

Are attorney fees required to file bankruptcy?

No, you can file pro se without an attorney, but it’s riskier and less likely to succeed. If hiring an attorney, payment plans or pro bono services can make fees manageable.

How do I find free help for bankruptcy?

Contact your local legal aid organization through the Legal Services Corporation for pro bono help. Tools like Upsolve also offer free assistance for simple Chapter 7 cases.

Which is cheaper: Chapter 7 or Chapter 13?

Chapter 7 has a lower filing fee ($338 vs. $313 for Chapter 13) and often lower upfront attorney costs, but Chapter 13 spreads fees over time. Your income and debt type determine which is more affordable.

This article is for informational purposes only and is not legal advice. Consult a qualified attorney for guidance tailored to your specific situation.


About the Author

Picture of Rick Munster

Rick Munster

Rick Munster is a personal finance expert and author with over 23 years of experience in the credit counseling industry. He currently serves on the board of directors for the Financial Counseling Association of America and has published more than 250 articles on personal finance. Over the course of his long-standing career at Money Fit, a nonprofit credit counseling organization, Rick’s insights have been featured by several news outlets on topics such as credit counseling, debt management, and financial education.
Visit Rick Munster's Page
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6213 N. Cloverdale Rd, Suite 130, Boise, ID 83713
Money Fit is a nationwide nonprofit 501(c)(3) organization. We do not lend money.

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You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
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  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)