Learn how to navigate the online bankruptcy filing process with this comprehensive guide. Understand the differences between Chapter 7 and Chapter 13, the necessary legal steps, and whether legal assistance is needed. Step-by-step instructions on forms, eligibility tests, credit counseling, and courtroom procedures are included to help you efficiently manage your bankruptcy case online.

Essential Guide for Filing Bankruptcy Online

Before starting your online bankruptcy process, it's important to understand the primary options: Chapter 7 and Chapter 13. Chapter 13 involves creating a repayment plan lasting 3 to 5 years, while Chapter 7 typically discharges eligible debts by liquidating certain assets. It's highly advisable to seek advice from a legal expert to choose the most suitable option, considering specific legal provisions and alternatives. Although most cases tend to file for Chapter 7, professional guidance ensures you make the right decision.

To file online, start by downloading the official free bankruptcy forms from the U.S. courts website. Follow these essential steps:

Complete the Means Test

This test determines eligibility for Chapter 7 by comparing your income to the median income in your state. If your income is below the median, you qualify; other factors are considered if it exceeds this amount.

Given the legal intricacies, consulting with a lawyer is recommended before proceeding.

Complete Credit Counseling

You are required to complete a government-approved credit counseling course within six months of filing. A certificate of completion will be needed during court proceedings.

Fill Out Bankruptcy Forms

Begin with form B101, the voluntary petition, then provide details about your creditors, expenses, and other relevant information through additional forms.

File Your Petition

Once filed, your case will be scheduled for court proceedings. For Chapter 7, a trustee will be appointed to liquidate non-essential assets to settle debts.

Complete a Financial Education Course

You must finish a debt management course within 45 days of meeting with your trustee and creditors, which may include in-person meetings.

Is legal representation required for online bankruptcy?

Not always. Some states support complete online filing, while others may require legal assistance. If you choose not to hire an attorney, you can opt for a bankruptcy petition preparer—a professional who is not an attorney—to assist with your documentation for a fee.