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"How Can I File Bankruptcy With No Money" Discussion

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Upsolve Community Member
2021-12-10

I do not want to feel like I am using bankruptcy as a copout. I have tried to pay down my creditors and have succeeded in paying off several trade lines; however a few of my credit cards are just too high for me to afford to pay my current bills, to survive and feed myself and pay off my credit cards it would take me over 20 years in order to do so. Unfortunately, my credit cards were closed before the pandemic offered some leeway to consumers to keep their cards open and all of my cards were closed but I paid those off. I am worried that I wasted my time paying off closed accounts. I have a few open cards that have no missed payments but every time I make a payment and my overall that goes down for some reason my credit score goes down with it. I have student loans that I am paying off after a consolidation and even though there is a government hold on having to pay them I’m still paying them down in order to avoid paying higher interest. I have noticed that since I started paying these down my credit score dropped about five points with each payment. I just want to start over and I don’t want to have to wait almost 8 years in order to do so. But I’m also worried because I do not have the money to pay down to a lawyer for a bankruptcy case. I have no assets so I’m not worried about having to fight for those. Does having no assets and no money to pay a lawyer prevent me from being able to file bankruptcy?

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Community Replies:

Upsolve Community Member
Welcome, Patricia - I'm so glad you found us. To answer your query on whether not having assets or money to pay a lawyer prevents you from filing - **absolutely not**. In fact, most people who file Chapter 7 bankruptcy find themselves in some version of that situation. 

Upsolve Community Member
https://upsolve.org/learn/how-to-file-chapter-7-with-no-money/ might be an interesting read for you. 

Upsolve Community Member
Hi Patricia, thank you for your detailed post! Let's separate your student loan debt issue from your consumer credit challenge. I cannot advise you on this subject but I can point you to a great article in the Learning Center: https://upsolve.org/learn/which-debt-should-you-pay-off-first/  As far as your student loans are concerned, I suggest checking out the new https://my.upsolve.org/rooms/18 section in this Community! :-)

Upsolve Community Member
2021-12-08

For job I don’t see where to add Ssd social security

5 Reactions

Community Replies:

Upsolve Community Member
I believe there's a question later about government benefits/other sources of income. 

Upsolve Community Member
You'll be adding this information in the "Monthly Income" and "Past Income" sections under "Government." Once you get there, let us know if we can clarify! 

Upsolve Community Member
Thanks for asking! 

Upsolve Community Member
You may also be wondering if https://upsolve.org/learn/file-bankruptcy-i-receive-money-from-social-security/.

Upsolve Community Member
2021-11-19

Is it okay to file for bankruptcy if you're unemployed? What does the court think about that.

3 Reactions

Community Replies:

Upsolve Community Member
You can file for bankruptcy, whether you're employed or not. Hope this helps! https://upsolve.org/learn/filing-bankruptcy-unemployed/

Upsolve Community Member
It's absolutely OK! The bankruptcy laws exist to protect you (even if it may not always seem that way to everyone)! You do want to be mindful of timing if you don't have any income at the moment. https://upsolve.org/learn/will-bankruptcy-help/ has more!

Upsolve Community Member
It's okay if you're unemployed, you can list the income and expenses you think you'll have after filing. 

Upsolve Community Member
2021-12-10

If I decide to file bankruptcy do I need to continue allowing my debt consolidation company ( for profit) to continue withdrawal ing monthly payments to an escrow account for payments they have set up to cc companies?? Do they have rights to keep this escrow $$$?? Or do i?

5 Reactions

Community Replies:

Upsolve Community Member
Hi Christy! In case you didn't see my comment in another post of yours in this regard check out this article in the Learning Center:  https://upsolve.org/learn/about-credit-counseling/ :-)

Upsolve Community Member
Check what kind of options you have to cancel and let them know in no uncertain terms that you're withdrawing the authorization to take money from your bank account. 

Upsolve Community Member
2022-01-05

In what cases can they take your car away? This is so scary! I don't have any debt on my car, I fully own it. The trade-in value of the car is $2,833.

5 Reactions

Community Replies:

Upsolve Community Member
Hi Lena, Most people can keep their car and get debt relief by filing bankruptcy. Here is an Upsolve Article that covers this topic: https://upsolve.org/learn/can-keep-car-file-bankruptcy/

Upsolve Community Member
Fortunately, there are also exemptions that might help if you don't owe money on your car and don't have any liens on your car. I think you'll enjoy reading https://upsolve.org/learn/chapter-7-bankruptcy-exemptions/. 

Upsolve Community Member
Really hope those articles help! Of course, everything depends on your individual circumstances, but many people find relief knowing that it's common to keep a car and file bankruptcy 

Upsolve Community Member
Please let us know if you have any other questions! 


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    Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Spun out of Harvard Law School, our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations. It's one of the greatest civil rights injustices of our time that low-income families can’t access their basic rights when they can’t afford to pay for help. Combining direct services and advocacy, we’re fighting this injustice.

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