To file for bankruptcy, follow these key steps:
1. Gather Your Financial Documents
Collect all relevant financial information, including:
- List of all debts (credit cards, loans, medical bills, tax debts)
- Income proof (pay stubs, tax returns for the last two years)
- Bank statements and asset valuations (real estate, vehicles, retirement accounts)
This helps you and the court understand your financial situation
2. Complete Credit Counseling
Before filing, you must complete a credit counseling course from an approved provider within six months prior to filing. This course explores if bankruptcy is the right option and issues a certificate you must submit with your forms
3. Choose the Type of Bankruptcy
- Chapter 7: Liquidation of assets for individuals or businesses.
- Chapter 13: Repayment plan for individuals with regular income.
- Other chapters exist for municipalities, farmers, businesses, or international cases
4. Fill Out Bankruptcy Forms
Complete the required bankruptcy forms (over 20 forms, up to 70 pages) detailing your income, expenses, assets, debts, and the chapter under which you are filing. You can file on your own (pro se) or with a lawyer
5. Pay the Filing Fee or Apply for Waiver
There is a filing fee (e.g., $338 for Chapter 7). You can pay in installments or apply for a fee waiver if your income is low
6. File Your Petition at the Bankruptcy Court
Take your completed forms, credit counseling certificate, and filing fee to your local bankruptcy court. The clerk will process your case, give you a case number, trustee’s name, and the date for your creditors’ meeting (341 meeting)
7. Submit Additional Documents to Trustee
After filing, mail your bank statements, tax returns, and other requested documents to the bankruptcy trustee assigned to your case
8. Attend the 341 Meeting of Creditors
Attend the meeting where the trustee and creditors can ask questions about your financial situation. Creditors may or may not attend
9. Complete a Financial Management Course
Before discharge, complete a debtor education course to help manage finances post-bankruptcy
10. Receive Discharge
If all goes well, the court will discharge your eligible debts, giving you a fresh financial start
. Additional Notes:
- Filing without a lawyer is possible but risky; legal advice is strongly recommended due to complex rules
- Bankruptcy cases are handled in federal courts under the U.S. Bankruptcy Code
- The automatic stay protects you from debt collectors once your case is filed
This process provides a structured way to get relief from overwhelming debt while protecting certain assets and rights
