Deciding to file for bankruptcy is a major financial decision, but it can provide a fresh start when you are overwhelmed by debt. Understanding the step-by-step process can help you feel more prepared and confident.
Step 1: Complete Credit Counseling
Before you can file for bankruptcy, you must complete a credit counseling course from a government-approved agency within 180 days before filing. This course typically takes 60–90 minutes and costs $10–$50.
Step 2: Gather Your Financial Documents
You will need detailed information about your finances, including:
- Income (pay stubs, tax returns, bank statements)
- Expenses (rent, utilities, food, transportation)
- Assets (real estate, vehicles, investments, personal property)
- Debts (credit cards, medical bills, loans, mortgages)
Step 3: Choose Chapter 7 or Chapter 13
Your attorney can help you determine which chapter is right for you. Generally, Chapter 7 is for those with limited income who want a quick discharge of debt. Chapter 13 is for those with regular income who want to keep their assets and repay debts over time.
Step 4: File the Bankruptcy Petition
Your attorney files a petition with the bankruptcy court in your district. The filing fee is $338 for Chapter 7 and $313 for Chapter 13 (as of 2026). Fee waivers or installment payments may be available.
Once filed, an automatic stay goes into effect immediately — stopping creditor collection calls, wage garnishments, and foreclosure proceedings.
Step 5: Attend the Meeting of Creditors
About 30–45 days after filing, you must attend a brief hearing called the “341 meeting” or “meeting of creditors.” The bankruptcy trustee and any creditors who choose to attend may ask questions about your finances under oath.
Step 6: Complete Debtor Education
Before your debts can be discharged, you must complete a second financial management course from an approved provider (another 60–90 minute course).
Step 7: Receive Your Discharge
If everything is in order, the court will issue a discharge order — wiping out most of your eligible debts. For Chapter 7, this typically happens 3–6 months after filing. For Chapter 13, you receive your discharge after completing your 3–5 year repayment plan.
Bankruptcy laws are complex and have long-term consequences. Consult a bankruptcy attorney before making any decisions.