Bankruptcy is a federal court process that either eliminates qualifying debts or restructures them into a repayment plan. The process works the same way across the country because federal law governs it, though state exemption rules affect what property you keep.

There are two main types for individuals. Chapter 7 wipes out most unsecured debts in about 4 to 6 months. Chapter 13 sets up a court-approved repayment plan over 3 to 5 years. Which chapter works for you depends on your income, assets, and what you are trying to protect.

The filing process has defined steps that apply to both chapters. This article walks through each one.

Step 1: Take the Required Credit Counseling Course

Federal law requires you to complete a credit counseling course from a government-approved agency before you can file. Per 11 U.S.C. § 109(h), the course must be finished within 180 days of your filing date.

The session runs about 60 to 90 minutes and can be done online, by phone, or in person. It reviews your financial situation and looks at whether alternatives to bankruptcy exist. You will receive a certificate when you finish. You must include this certificate with your bankruptcy petition. Without it, the court will not accept your filing.

The course costs between $15 and $50. If you cannot afford the fee, you can ask for a waiver. Find approved providers on the U.S. Department of Justice's credit counseling agency list.

“The biggest roadblock right out of the gate is almost always the mandatory credit counseling certificate. People come in panicked, needing to stop a wage garnishment or a foreclosure that very day, but federal law dictates that we literally cannot file their case until they take that course. If they knock out that quick online class the second they decide to file, it hands us the keys to submit their petition immediately and stop their creditors cold.”

Step 2: Gather Your Financial Documents

Bankruptcy requires a detailed accounting of everything you own, owe, earn, and spend. Getting organized early saves time and prevents mistakes during filing.

Official bankruptcy forms: Your attorney will handle most form preparation, but you should know what is involved. The petition package includes your bankruptcy petition, a statement of your Social Security number, your creditor mailing list, schedules of assets and liabilities, a statement of financial affairs, your statement of current monthly income, and your credit counseling certificate. Official forms are available at uscourts.gov/forms.

Get your free credit reports at AnnualCreditReport.com. You are entitled to one free report per week from each bureau—Equifax, Experian, and TransUnion.

Do not forget debts that may not appear on credit reports, such as medical bills, personal loans from friends or family, and payday loans. Every debt and every creditor must be listed in your filing. Any debt you leave out will not be discharged.

“I always tell them to stop staring at the mountain and just find two things: your last two years of tax returns and your last six months of pay stubs. People get totally paralyzed trying to track down every single $50 medical bill from three years ago, but we can pull a comprehensive credit report to find all that. Just focus on getting the income documents together first, and let my office handle the heavy lifting.”

Step 3: Decide Between Chapter 7 and Chapter 13

According to the U.S. Courts Chapter 7 Bankruptcy Basics, most individual Chapter 7 consumer filings are no-asset cases where all property is protected by exemptions. However, if your income is above your state's median and you do not pass the means test, you may be required to file Chapter 13 instead.

An attorney can help you determine which chapter fits your situation. Choosing the wrong one can mean losing property you could have protected, or having your case dismissed entirely.

Step 4: Hire a Bankruptcy Attorney or File Pro Se

You are legally allowed to file bankruptcy without an attorney. This is called filing "pro se." The process has many steps, and a single mistake can delay your case or cost you property.

Filing without an attorney creates several risks:

• You may choose the wrong exemptions and lose property you could have kept
• You may fill out forms incorrectly, causing delays or case dismissal
• You may miss deadlines that cannot be extended
• You may not qualify for the chapter you file and have your case thrown out

If you cannot afford an attorney, these options exist:

• Legal Services Corporation provides free legal help to qualifying low-income individuals — find local programs at lsc.gov/about-lsc/what-legal-aid/get-legal-help
• Law school clinics at many universities offer supervised bankruptcy assistance
• Pro bono programs run by many bankruptcy courts connect volunteer attorneys with filers — search through your district's bankruptcy court website
• Chapter 13 fee inclusion allows many attorneys to roll their fees into your repayment plan

Typical attorney fees range from $1,000 to $2,000 for Chapter 7 and $2,500 to $5,000 for Chapter 13, depending on location and case complexity.

“The absolute worst disaster I ever saw was someone who filed on their own to save a thousand dollars in legal fees, and the trustee ended up seizing their $40,000 paid-off truck because they didn't properly apply the state wildcard exemption. If they had just worked with an attorney, we would have fully protected the vehicle or steered them into a Chapter 13 to keep it. Trying to interpret exemption laws on your own puts your most valuable property at serious risk.”

Step 5: Complete and File Your Bankruptcy Petition

The bankruptcy petition is a set of official forms totaling about 50 to 70 pages. The forms cover your debts, income, assets, and any property you transferred in the past two years. Official forms are available free at uscourts.gov/forms/bankruptcy-forms.

Your attorney files the petition electronically with the federal bankruptcy court in your district. If you are filing pro se, most courts require you to submit your petition in person, by mail, or by drop box. Only attorneys can use the electronic filing system (CM/ECF) in most jurisdictions.

Filing fees (2026) per 28 U.S.C. § 1930:

Fee waiver (Chapter 7 only): If your household income is below 150% of the federal poverty guidelines, apply using Form 103B to have the entire fee waived.

Installment payments (Chapter 7 and Chapter 13): File Form 103A to split the fee into up to 4 payments over 120 days. Missing an installment can result in your case being dismissed.

What happens immediately after filing: The automatic stay takes effect the moment your petition is filed. Under 11 U.S.C. § 362, this federal court order stops most creditor actions against you — including collection calls, lawsuits, wage garnishments, and foreclosure proceedings.

Step 6: Attend the 341 Meeting of Creditors

About 30 to 45 days after filing, you must attend the 341 meeting, named after Section 341 of the Bankruptcy Code. Despite the name, creditors rarely show up.

The meeting is conducted by the bankruptcy trustee assigned to your case. The judge does not attend. The trustee's job is to verify your identity, confirm the accuracy of your petition, and determine whether any assets can be used to pay creditors.

What to bring: Government-issued photo ID and proof of your Social Security number (SSN card, W-2, or other official document).

What to expect: The meeting usually lasts 5 to 10 minutes for straightforward cases. The trustee asks questions about your finances under oath. You must answer honestly. Dishonesty in bankruptcy is a federal crime.

Virtual/video 341 meetings: Many bankruptcy courts now allow 341 meetings by phone or video. Check with your attorney or use the U.S. Courts court locator to confirm the format used by your district.

What the trustee looks for: In a Chapter 7 case, the trustee reviews your petition for assets not protected by exemptions. If all your property is covered, the trustee files a "no-asset" report and creditors receive nothing. According to U.S. Courts, most Chapter 7 consumer cases are no-asset cases.

Do not skip this meeting. If you fail to appear without a valid reason, the court can dismiss your case.

Step 7: Complete the Debtor Education Course

After filing but before receiving your discharge, you must complete a debtor education course (also called a financial management course). This is separate from the pre-filing credit counseling in Step 1.

The course covers budgeting, money management, and how to use credit responsibly after bankruptcy. It takes about 2 hours and can be completed online or by phone. Fees typically run $10 to $50, with fee waivers available for those who qualify. Find approved providers on the U.S. Department of Justice's debtor education provider list.

You must file your completion certificate with the court. If you do not complete this course, you will not receive a discharge, and your debts will remain. This requirement is mandated under 11 U.S.C. § 727(a)(11) for Chapter 7 filers.

Step 8: Receive Your Discharge

The discharge is the court order that officially eliminates your qualifying debts. Under 11 U.S.C. § 524, once discharged, creditors can no longer attempt to collect those debts from you.

Some debts stay with you after bankruptcy. Under 11 U.S.C. § 523, these include child support, alimony, student loans in most cases, recent tax debts, fraud-related debts, and fines from criminal cases.

After your discharge, check your credit reports from all three bureaus at AnnualCreditReport.com to confirm discharged debts show a zero balance.

Step 9: Handle Reaffirmation Agreements for Property You Want to Keep

If you want to keep a secured asset — most commonly a car or a home — after your Chapter 7 discharge, you may need to sign a reaffirmation agreement with the lender. This step does not apply to Chapter 13 filers, who keep all property through the repayment plan.

What a reaffirmation agreement is: A reaffirmation agreement is a contract signed during your bankruptcy case that removes a specific debt from your discharge. You keep the property and continue making payments as before. You remain personally responsible for the debt going forward. This process is governed by 11 U.S.C. § 524(c).

Why it matters: Without a reaffirmation agreement, some lenders — particularly auto lenders — may repossess the vehicle even if you are current on payments, because the debt was discharged. Other lenders allow you to keep the car under a "ride-through" arrangement as long as you stay current. Mortgage lenders generally do not require reaffirmation to keep your home as long as you are not in default.

Key rules for reaffirmation:

• The agreement must be signed and filed before your discharge date — typically within 60 days after your 341 meeting
• The court may hold a hearing if you are not represented by an attorney or if the payment appears unaffordable
• You have the right to cancel the agreement within 60 days of signing or before your discharge, whichever is later
• If the judge denies the agreement, the lender decides whether you keep the property based on their own policy

Your three options for secured property:

Speak with your attorney before signing any reaffirmation agreement. Signing one you cannot afford means you lose bankruptcy protection on that debt if you fall behind later. Learn more from the U.S. Courts overview of reaffirmation.

What Not to Do Before and During Bankruptcy

Before you file, stop using credit cards and avoid taking new loans. Do not move property or money to family members. Courts treat these as suspicious transfers and the trustee can reverse them.

Before filing, do not:

• Run up new credit card charges or take out new loans
• Transfer or sell property to family or friends
• Pay back family or friends ahead of other creditors — trustees can reverse preferential payments made within 90 days of filing under 11 U.S.C. § 547
• Withdraw money from retirement accounts
• Gamble

During your case, do not:

• Hide assets or income from the trustee
• Miss payments on secured debts you want to keep
• Ignore mail from the court, the trustee, or your attorney
• Skip the 341 meeting or the debtor education course

How Much Does Bankruptcy Cost in Total?

Filing fees are set by 28 U.S.C. § 1930 and confirmed on the U.S. Courts bankruptcy fees page.

Can You File Bankruptcy Online?

Only attorneys can file bankruptcy petitions electronically through the court's CM/ECF system. If you are filing without an attorney, you will need to submit your paperwork in person, by mail, or through a court drop box. Use the U.S. Courts court locator to find your district's filing location and hours.

Online bankruptcy preparation services can help you fill out forms, but they cannot provide legal advice. Only a licensed attorney can advise you on exemptions, strategy, and how to protect your assets.

Frequently Asked Questions

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Bankruptcy law varies by state and individual circumstances. Consult a licensed bankruptcy attorney before making any filing decisions.