Filing for Bankruptcy costs money and even if you do the filing all by yourself you will still need to spend money on documents, papers and other information requirements.  If you want to know how to file personal bankruptcy for free then you will just find yourself with no answers.  What you can do is to learn the ways to cut cost when you file bankruptcy.  To get into that, you must have a basic understanding of bankruptcy.  You do not need to become an expert of it but just become familiar with the bankruptcy laws.

Bankruptcy is considered as a privilege by many because it has the capacity to eliminate the debt of a person.  The two types of bankruptcy you should be learning should be chapter 7 and chapter 13.  These two types of bankruptcy are the most commonly filed by people.  There are advantages and disadvantages with each type and learning them can help you make preparations in which type you will be able to file.

Chapter 7 is the straight or liquidation type bankruptcy.  This bankruptcy works by liquidating the properties of a debtor.  The amount of money that will be produced from the liquidation will be distributed to the creditors.  Debts that are unpaid by the completion of the liquidation are categorized as forgiven or eliminated and therefore, cannot be claimed by the creditors anymore.  The debtor can keep properties that are called exempt properties.  These types of properties are exempted from the liquidation; other properties that are not categorized as exempt are put through liquidation.

Chapter 13 is referred to as a reorganization or repayment plan.  This type of bankruptcy works to resolve debts by letting the debtor propose a plan to pay the debts he owes from his creditors.  The only way he can be eligible for this is to prove that he has an income that exceeds his expense.  Currently, most people are encouraged to file this type of bankruptcy because of the new requirement of the new bankruptcy law which is that a person must attend a credit counseling session conducted by credit counseling agencies.  These agencies provide the repayment plan for you so indirectly influencing you to file a chapter 13.

If you want to know how to file personal bankruptcy for free or at least at very minimum cost then I can suggest a few ways in which you can achieve this.  The first thing you can do to cut cost in filing your bankruptcy is doing it all by yourself.  This is hard work and most likely will take you time to get things done.  Also, adding to the problem is the risk that you might make a mistake preparing your papers.

The best thing I can suggest you can do is to hire a petition preparer or a bankruptcy lawyer to prepare your papers.  This way, mistakes can be avoided.  You just pay their flat fee and then you do the rest of the work.  You do not have to spend a lot of money when you file bankruptcy.  For more support on how to file bankruptcy, visit the link below.