Filing for bankruptcy is a big step, and you’ve already made the hardest decision—choosing to move forward. Now it’s all about getting the process right.
This guide covers every step you need to take, from completing the required courses to submitting paperwork and understanding what happens after you file. Whether you’re considering Chapter 7 or Chapter 13, this walkthrough is designed to keep things clear and stress-free.
If you’re an individual filing personal bankruptcy, this is exactly what you need to know to take the next step with confidence.
Step-by-Step Guide to Filing Bankruptcy the Right Way
You’ve made the decision to file bankruptcy—now it’s time to follow the process. Whether you’re going through Chapter 7 or Chapter 13, the steps are mostly the same. Getting each one right is the key to avoiding delays, protecting your rights, and getting your debts discharged as quickly as possible.
Here’s a clear breakdown of what to do, when to do it, and what to expect along the way.
Step 1: Take the Required Credit Counseling Course
Before you can file bankruptcy, you must complete a credit counseling course from a provider approved by the U.S. Trustee Program. This is not optional—it’s a legal requirement.
The course typically lasts 60 to 90 minutes and can be completed online, by phone, or in person. Most people finish it in one sitting. You’ll get a certificate when you’re done, and you’ll need to include that certificate when you file your bankruptcy petition.
To find an approved provider, visit the U.S. Department of Justice website. Costs range from $10 to $50, but many agencies will reduce or waive the fee based on your income.
Step 2: Decide Which Chapter to File (Chapter 7 vs. Chapter 13)
Most individuals file under either Chapter 7 or Chapter 13. The right choice depends on your income, assets, and goals.
- Chapter 7 is liquidation bankruptcy. It’s faster and wipes out unsecured debt like credit cards and medical bills, but you may need to give up some assets.
- Chapter 13 is a repayment plan. You keep your property and repay part of your debt over three to five years, often with lower monthly payments.
If your income is below your state’s median, you may qualify for Chapter 7. If it’s above, you’ll have to pass the means test—a calculation that looks at your income, expenses, and ability to repay.
Not sure which chapter to file? Many bankruptcy attorneys offer free consultations to help you decide.
Step 3: Gather All Necessary Documents
Before you start filling out forms, get all your paperwork in order. Missing or inaccurate information can slow things down or cause your case to be dismissed.
Here’s what you’ll typically need:
- Income verification – Pay stubs or proof of income for the past six months
- Tax returns – Usually for the past two years
- Bank account statements – From all open accounts
- Debt information – Credit card balances, loan statements, collection notices
- Asset list – Cars, real estate, retirement accounts, personal property
- Monthly expenses – Rent, utilities, food, insurance, transportation
Tip: Use a spreadsheet or checklist to keep everything organized. This will make completing the bankruptcy forms much easier.
Step 4: Complete the Bankruptcy Forms
Bankruptcy requires a lot of paperwork, and most of it needs to be filed all at once. You’ll need to complete a petition, a series of schedules listing your income, assets, debts, and expenses, and other financial disclosures.
These forms are available for free from the U.S. Courts website. However, many people choose to use bankruptcy software or hire an attorney to help ensure everything is filled out correctly.
Filing fees are currently around $338 for Chapter 7 and $313 for Chapter 13. If you can’t afford the fee, you can apply for a waiver or ask to pay it in installments.
Step 5: File Your Petition with the Bankruptcy Court
Once your forms are ready and your credit counseling is complete, it’s time to file your case with the bankruptcy court in your district.
Most courts allow online filing through their electronic system, but you can also file in person. As soon as you file, the automatic stay takes effect—this legally stops most collection actions immediately.
You’ll get a case number and be assigned a bankruptcy trustee. The trustee’s job is to review your case and oversee the process, including the meeting of creditors.
Step 6: The Automatic Stay Begins
As soon as you file your bankruptcy petition, the automatic stay kicks in. This court order stops most collection activity right away.
That includes:
- Lawsuits
- Wage garnishments
- Foreclosure proceedings
- Collection calls and letters
The automatic stay typically remains in place until your case is closed or dismissed. In Chapter 13 cases, it can last several years—through the duration of your repayment plan.
There are exceptions. The automatic stay does not stop actions related to:
- Child support
- Alimony
- Criminal proceedings
- Certain tax obligations
If a creditor violates the stay, you can report it to the court—and in some cases, the creditor may face penalties.
Step 7: Attend the 341 Meeting (Meeting of Creditors)
About a month after you file, you’ll attend a short hearing called the 341 meeting. It’s a mandatory step for both Chapter 7 and Chapter 13 cases.
This meeting is not held in a courtroom, and no judge is present. You’ll meet with your bankruptcy trustee, who will ask questions about your finances, assets, and debts. Creditors can attend and ask questions, but in most cases, they don’t show up.
Bring the following to the meeting:
- Government-issued photo ID
- Social Security card
- Recent bank statements
- Pay stubs or proof of income
If you miss the 341 meeting without a valid reason, your case may be dismissed. If you can’t attend, contact the trustee’s office ahead of time to reschedule.
Step 8: Complete the Second Education Course (Debtor Education)
Before your bankruptcy can be finalized, you must complete a second course—often called debtor education or the post-filing education course.
This course covers budgeting, credit use, and financial planning. It usually takes 1–2 hours and costs $10 to $50. Like the first course, it must be completed through a court-approved provider.
Once finished, you’ll receive a certificate. You must file that certificate with the court. If you don’t, your case could be closed without a discharge—even if you completed every other step.
Step 9: Wait for Your Discharge (and Finalize Any Payments if Chapter 13)
The final step is receiving your bankruptcy discharge. This is the court order that officially eliminates your eligible debts.
Chapter 7 timeline: Most filers receive their discharge about 60 to 90 days after the 341 meeting.
Chapter 13 timeline: You must complete your 3- to 5-year repayment plan before the court will issue your discharge.
The discharge typically wipes out:
- Credit card debt
- Medical bills
- Personal loans
- Old utility bills
Some debts are not discharged in bankruptcy. These include:
- Student loans (in most cases)
- Recent tax debts
- Child support and alimony
- Court fines and criminal restitution
Once you receive your discharge, your case will close shortly afterward.
What Happens After You File?
Filing bankruptcy is a fresh start—but it’s not the end of your financial life.
Here’s what to keep in mind after your case is closed:
- Rebuild your credit – Apply for a secured credit card, make on-time payments, and monitor your credit reports.
- Keep your discharge paperwork – You may need it later if a creditor tries to collect on a discharged debt.
- Stay on top of your budget – Build habits that help you avoid falling back into debt.
Final Thoughts
Bankruptcy is never easy—but if you’re here, you’re already taking control of your financial future.
Follow the steps, stay organized, and don’t be afraid to ask for help when you need it. If your case is complicated or you’re unsure about any part of the process, talking to a bankruptcy attorney can give you peace of mind and help you avoid mistakes.
You’ve got a clear path. Now take it one step at a time.
