How To Get a Fee Waiver for Free Bankruptcy Credit Counseling

Before you can file bankruptcy, you must take a mandatory credit counseling course. You'll need to complete the course in the six month (180 days) before filing your case. If you don't take the course or fail to take it in the required time frame, you risk having your bankruptcy case thrown out.

There's a course fee of $10–$50, depending on which provider you use. But you can apply for a fee waiver if you aren't able to afford the course fee.

How Can I Get Free Bankruptcy Credit Counseling?

If you qualify for a fee waiver, you'll be able to take the required credit counseling course for fee.

Eligibility for the waiver is based on your income. If your income is below 150% of the federal poverty guidelines, you should be eligible for a fee waiver. 

How Do I Get a Fee Waiver for the Credit Counseling Course?

Generally, the credit counseling agency you're using to take the course will ask if you want to apply for a fee waiver.

The agency may then ask for some documents, including proof of income, a budget worksheet, and an application form. This information will help the agency decide whether or not to approve you.

Once you're approved, you can proceed with the course without paying a fee. Completing the course is a crucial first step in filing bankruptcy.

Here's a look at the process in a bit more detail.

Step 1: Find an Approved Credit Counseling Agency

You can take the required credit counseling course through any approved agency. Upsolve recommends DebtorCC because of its user-friendliness.

After you decide which agency you want to use, you'll have to create an account on its website. You'll probably see course fees advertised. Don't worry about these fees just yet. You wont' have to pay anything to create the account.

Step 2: Fill Out the Credit Counseling Fee Waiver Application

Using DebtorCC as an example, after you create an account and provide some basic information, you'll come to a page called “First Course-Fee Waiver Eligibility.” It will ask if you'd like to apply for a fee waiver. Select the option for a fee waiver request and download the application.

The application will ask about your income and your household size. To answer these questions, it helps to have your last two paycheck stubs and your W2s from last year.

If you're on a fixed income, find your Social Security award letter, unemployment earnings letter, or other document showing how much you get each week or month. 

The application will also ask about any assets you may have, such as checking and savings accounts, cars you own free and clear, jewelry, furniture, and cash. You'll have to list the value of each item as part of your fee waiver application.

You'll have to do this again when preparing your bankruptcy forms, so keep this information handy.

Step 3: Wait 72 Hours To See if It’s Approved (You’ll Get an Email)

After you complete the application, sign it and send it (along with all supporting documents) to the credit counseling agency. The supporting documents are your paycheck stubs, W2s, or other information regarding any other sources of income you may have. If you're using DebtorCC, you'll email it to feewaiver@debtorcc.org.

Once the application and all documents are submitted, you’ll receive a response within 72 hours to let you know if your fee waiver application has been approved. You will be notified by email, so make sure to keep an eye on that. If you have any questions regarding the response, you can contact the agency you're working with.

What if My Bankruptcy Credit Counseling Waiver Is Denied?

If your fee waiver application is denied you can still take the course but you'll need to pay the required fee.

The credit counseling course is required by the Bankruptcy Code and you can’t file bankruptcy without it. That’s why completing the course and getting a certificate verifying that you’ve done it is so important. Also, remember to keep in mind the big picture. It may hurt to pay the fee now, but remember how much debt you'll be able to eliminate once you file your Chapter 7 bankruptcy case.

Need Help Filing Chapter 7?

Ironically, bankruptcy comes with a lot of costs! But there are ways to work around these fees. One of the biggest costs of filing bankruptcy is hiring a lawyer. But many people file Chapter 7 successfully without hiring an attorney. If you have a simple case, take Upsolve's quick screener to see if you're eligible to use our free filing tool. Upsolve is a nonprofit dedicated to helping people get out of debt. We've helped over 13,000 people get rid of $700 million of debt by filing Chapter 7. Our services are 100% free and our users love us.