Step 1: Determine If Bankruptcy Is Right
Bankruptcy eliminates most unsecured debts, but it is not the only option. Consider debt negotiation, credit counseling, or consolidation first. Bankruptcy is the right choice when debts are unmanageable, creditors are suing or garnishing wages, or you are facing foreclosure or repossession. Learn about the fresh start.
Step 2: Choose Your Chapter
Chapter 7 -- liquidation. Most unsecured debts discharged in 4-6 months. Must pass means test. whatischapter7.com.
Chapter 13 -- repayment plan over 3-5 years. Keep your property, cure mortgage arrears, cram down car loans. chapter13plan.org.
Chapter 11 Subchapter V -- small business reorganization. section1191.org.
Step 3: Complete Credit Counseling
Required within 180 days before filing. Approved agencies listed at justice.gov. Costs $25-50. Takes about 1 hour. You receive a certificate that must be filed with your petition. Learn more about filing requirements.
Step 4: Gather Your Documents
Last 6 months of pay stubs. Last 2 years of tax returns. Bank statements for all accounts. List of all debts with account numbers and balances. List of all assets with estimated values. Property deeds, vehicle titles. Mortgage and car loan statements. Insurance policies.
Step 5: Complete the Forms
Official Form 101 (individual petition) or 201 (non-individual). Schedules A/B through J (assets, liabilities, income, expenses). Statement of Financial Affairs. Means test form (122A for Chapter 7, 122C for Chapter 13). All forms available free at uscourts.gov.
Step 6: File Your Petition
Filing fees: Chapter 7 is $338, Chapter 13 is $313. File at the bankruptcy court for your district. The automatic stay takes effect immediately upon filing -- creditors must stop all collection activity. Learn about the automatic stay.
Step 7: Attend the 341 Meeting
Scheduled 20-40 days after filing. Bring government-issued ID and proof of Social Security number. The trustee asks questions under oath about your finances. Creditors may attend but rarely do. Takes 5-15 minutes for most cases. Full 341 meeting guide.
Step 8: Complete Debtor Education
Second required course, taken after filing. Different provider than credit counseling. Must complete before discharge. Certificate filed with the court.
Step 9: Receive Your Discharge
Chapter 7: approximately 60 days after the 341 meeting. Chapter 13: after completing all plan payments (3-5 years). The discharge permanently eliminates your obligation to pay discharged debts. Learn about discharge timing.
Check your discharge eligibility
Free Discharge Screener