How To File Bankruptcy for Free in Vermont

Collect Your Vermont Bankruptcy Documents

To file Chapter 7 bankruptcy, you’ll need to pull together some key documents. Some are required by the court to show your income and financial situation. Others will just make filling out your forms a lot easier.

📂 Here’s what you’ll need to show the court or trustee:

• Paycheck stubs from the past six months

• Tax returns from the last two years

• A bank statement that includes your filing date

🗂️ It’s also helpful to gather:

• Bank statements from the last 6–12 months

• Recent credit card and loan statements

• Letters or notices from debt collectors

• A recent credit report

📄 You can get a free copy of your credit report every week from all three credit bureaus at AnnualCreditReport.com. 

If you use Upsolve’s free filing tool, we’ll pull your credit report for you so you don’t have to track down every account on your own.

Take a Credit Counseling Course

Before you file your bankruptcy case, you’ll need to take a credit counseling course. This short class explains your options for dealing with debt and helps you understand whether Chapter 7 is the right choice for you.

📌 Keep in mind:

• You must take the course within 180 days before you file your case.

• The course must be from a court-approved provider in Vermont.

• Most people take the course online or over the phone, but some providers offer in-person options.

• It usually takes about an hour to complete.

• The course costs $10–$50, but you may qualify for a fee waiver if you can’t afford it.

✅ After you finish, you’ll get a certificate of completion. Include this with your bankruptcy forms when you file or your case could be dismissed.

Complete the Bankruptcy Forms

Next, you’ll fill out your bankruptcy forms. These give the court a full picture of your finances, including your income, debts, property, and expenses. 

Most of the forms are federal, which means they’re the same no matter what state you file in. You can download them for free as fillable PDFs fromUSCourts.gov.

💻 If you use Upsolve’s filing tool, we’ll walk you through an online questionnaire and then prepare the forms for you based on your answers. 

👉 Some courts also require local forms. You’ll find those listed in the Vermont Districts & Filing Requirements section later.

Get Your Filing Fee

There’s a $338 court filing fee to file a Chapter 7 case, but many people qualify for a fee waiver based on their income. Upsolve’s filing tool can help you fill out the request, but you’ll still need to submit the form yourself.

📆 If you don’t qualify for a waiver, you can either pay the full $338 when you file or ask the court to let you pay in smaller monthly payments. This is called an installment plan. You’ll usually need to make a down payment when you file, then continue paying the rest over the next few months.

🛑 As soon as you file your case, the automatic stay takes effect. This stops most creditors from collecting while your case is active. 

If you’re paying in installments, be sure to keep up with your payments. If you miss one, your case could be dismissed, and you’d lose the automatic stay protection.

Print Your Bankruptcy Forms

After your bankruptcy forms are complete, you’ll need to print them out to file by mail or in person at the courthouse. Using a checklist can be a helpful way to keep track of what needs to be printed and signed.

🖨️ Here are some printing tips to get your documents court-ready:

• Use standard white 8.5” x 11” letter-size paper.

• Print in black ink.

• Print pages single-sided.

• Don’t staple or hole-punch your forms.

🖊️ Be sure to sign every page that requires a signature.

✨ If you’re using Upsolve’s filing tool, you’ll get a ready-to-print packet with everything you need. There are clear dividers that flag each signature page.

File Your Forms With the Vermont Bankruptcy Court

Once you print and sign your forms, you’re ready to file your case with the court. In Vermont, you can file your bankruptcy forms in person or by mail. Electronic filing isn’t available for people filing without a lawyer.

🏛️ Many people choose to file in person at the courthouse. It’s the fastest way to get your case started, and it can give you peace of mind. The clerk can look through your packet and let you know if anything’s missing, and you don’t have to worry about mail delays or lost forms.

📬 If you decide to mail your forms instead, double-check that you've signed everything and included all required pages. It's a good idea to use a mailing option with tracking, like certified mail, so you know when your packet arrives.

Mail Documents to Your Trustee

After your case is filed, the court will assign a bankruptcy trustee to oversee it.

They’ll go over your paperwork, collect a few documents from you, and lead your 341 meeting. This is a short video call where you’ll answer basic questions about your case.

📌 After you file, you’ll get an official notice from the court with your trustee’s name, contact info, and the date and time of your 341 meeting.

Before the meeting, you’ll need to send your trustee some documents. Unless your trustee gives you a different deadline, plan to send these at least 14 days before your meeting:

• A copy of your most recent federal tax return

• A bank statement that includes the date you filed

• A copy of your photo ID

• Proof of your Social Security number (like a copy of your Social Security card, a W-2, or a paystub with your full number)

• Your most recent paystub or other proof of income

Every case is different, but you may get a letter from your trustee asking for more documents. It’s common to be asked for things like car titles, mortgage records, or extra bank statements. Sending what they ask for as soon as you can helps keep everything on track.

Take a Debtor Education Course

After your 341 meeting, there’s one more required step before your bankruptcy can be completed: a debtor education course. This course is different from the first one you took before filing. It covers financial topics like budgeting, managing credit, and saving for the future.

🧠 Here’s what to keep in mind:

• The course must be taken within 60 days of your 341 meeting.

• It costs $10–$50, but some people qualify for a fee waiver.

• It usually takes about an hour to complete.

• Pick a provider that’s on the court’s approved list.

• When you finish, submit your certificate to the court. The court needs this from you before it can grant you a discharge, the official court order that erases your qualifying debts.

Attend Your 341 Meeting

About a month after you file, you’ll meet with your bankruptcy trustee in what’s called a 341 meeting (or meeting of creditors). This is a standard part of every Chapter 7 case. The trustee will confirm your identity and ask a few simple questions to make sure your paperwork is accurate. Creditors are allowed to attend, but they rarely do.

📌 Most 341 meetings happen over Zoom video. Your court notice will include the meeting date, time, and login information.

The meeting usually takes less than 10 minutes. You’ll be placed under oath, then asked a few questions about your bankruptcy forms. You may be asked about your income, property, or recent changes in your finances. It’s not a test. They’re just making sure they have all the details right.

📄 It helps to have these handy during your meeting:

• A government-issued photo ID and proof of your Social Security number

• A copy of your bankruptcy forms

• Any documents you already sent to the trustee (like pay stubs or tax returns)

• Your official case notice from the court

🏁 Most people feel a little nervous going in, but they often walk away surprised by how fast and simple it was.

Deal With Your Car

Many people worry they’ll lose their car if they file for bankruptcy. But most people are able to keep their car.

Let’s take a look at your options.

🚙 If you own your car outright, you may be able to keep it if its value falls within a bankruptcy exemption. Exemptions are legal protections that help you keep certain property during bankruptcy. 

Vermont allows you to choose between state and federal exemptions. Under Vermont’s exemption, you can protect up to $2,500 in equity for one car. The federal exemption protects up to $5,025. 

📚 You’ll learn more about exemptions later in the Vermont Exemptions section of this guide.

💵 If you have a car loan, your options depend on how much equity you have. Equity is the difference between what your car is worth and how much you still owe on it. If your equity is protected by an exemption, you may be able to keep your car. Then, you’ll need to decide what to do with the loan. You have a few choices:

• Surrender: This means you agree to give the car back to the lender, and the remaining loan is wiped out. Many filers choose to do this when they owe more than the car is worth or when they simply don’t want to keep the car.

• Redemption: Redeeming the car means you pay the car’s current value (rather than what you owe on the loan) in a lump sum and keep the vehicle. This can be a good option for filers who owe more than their car is worth, but it’s often difficult to come up with the lump-sum payment. Also, the lender must agree to the redemption.

• Reaffirm: Reaffirmation means you agree to keep making payments on the loan as usual. To reaffirm, you usually need to be up to date on payments. Both the lender and the bankruptcy judge must agree to the reaffirmation.

📝 If you’re leasing your car, you have options, too. You can keep the lease and continue making payments or choose to walk away. Learn more in our car lease bankruptcy guide.