Immediate Deadlines
- Complete pre-filing credit counseling:Within 180 days before filing
- Attend Section 341 meeting of creditors:21-40 days after petition filing
- Complete financial-management course:Within 60 days of 341 meeting (Ch 7) or before final plan payment (Ch 13)
- File schedules and statement of financial affairs:With petition or within 14 days
Documents You'll Need
- Six months of paystubs and bank statements
- Two years of federal tax returns
- List of all creditors with addresses and account balances
- List of all assets with fair market values
- Recent appraisals for real estate and vehicles
- Lease agreements and mortgage documents
- Domestic support obligation records (child/spousal support)
- Credit counseling certificate (must be from approved agency)
Step-by-Step
Take pre-filing credit counseling
Federal law (added by BAPCPA in 2005) requires every individual filer to complete an approved credit-counseling briefing within 180 days before filing. The session lasts 60-90 minutes online or by phone and costs $10-$50 (fee waivers available for low-income). The agency must be on the U.S. Trustee's approved list. You receive a certificate that must be filed with your petition.
Apply the means test (Chapter 7 eligibility)
The BAPCPA means test compares your household income to your state's median income for the same family size. If you're below the median, you qualify for Chapter 7 automatically. If above, the second prong calculates disposable income after IRS-allowed expenses; if disposable income is too high, you're presumed ineligible for Chapter 7 and must file Chapter 13. The current median figures are published quarterly by the U.S. Trustee.
Choose Chapter 7 or Chapter 13
Chapter 7 (liquidation) discharges most unsecured debt in 3-6 months. A trustee can sell non-exempt assets to pay creditors, but state and federal exemptions usually protect basic property. Chapter 13 (reorganization) lets you keep assets while paying creditors over 3-5 years from disposable income. Chapter 13 is required if you fail the means test, want to save a home from foreclosure, or have non-dischargeable priority debts.
File the petition, schedules, and statements
File the bankruptcy petition with the federal bankruptcy court for your district. Filing fees: $338 (Ch 7) or $313 (Ch 13). Fee waivers available for households below 150% of poverty line. You must file detailed schedules listing every asset, debt, income source, expense, and recent property transfer. Omitting assets is bankruptcy fraud (a federal felony). Filing triggers the automatic stay (11 USC § 362) halting most collection.
Attend the 341 meeting of creditors
Within 21-40 days of filing, you appear under oath before the trustee at the Section 341 meeting. Creditors may attend but rarely do in consumer cases. The trustee verifies your identity and asks routine questions about your petition, assets, and recent transfers. Most meetings last 5-15 minutes. Failure to appear can result in case dismissal. Bring photo ID and proof of Social Security number.
Complete the financial-management course
After filing, you must complete a second course — debtor education on personal financial management — before discharge. The course runs 2-3 hours online and costs $10-$50. File the completion certificate (Form 423) with the court within 60 days of the 341 meeting in Chapter 7 or before the final plan payment in Chapter 13. No certificate, no discharge.
Receive the discharge order
In Chapter 7, the court typically enters the discharge 60-90 days after the 341 meeting (3-6 months total from filing). In Chapter 13, the discharge follows successful completion of all plan payments (3-5 years). The discharge permanently bars creditors from collecting discharged debts. Non-dischargeable debts (most student loans, recent tax debts, child support, criminal restitution, fraud judgments) survive. Bankruptcy stays on your credit report 7 (Ch 13) to 10 (Ch 7) years.
How This Varies by State
Exemption systems vary dramatically. Some states (CA, NJ, PA, TX) require state exemptions; others (AK, AR, CT, HI, MA, MI, MN, NH, NJ, NM, NY, OR, PA, RI, TX, VT, WA, WI, DC) let you choose between state and federal exemptions. Texas and Florida offer unlimited homestead protections — entire home equity is protected regardless of value (subject to a 1,215-day BAPCPA cap of $189,050 if you moved in recently). California's System 2 (CCP § 703.140) closely mirrors federal exemptions. Wildcard exemptions (used on any property) range from $0 (DE, OK) to over $30,000 (NV).
Federal Law Considerations
Bankruptcy is entirely federal — filed in U.S. Bankruptcy Court under Title 11 of the U.S. Code. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) added the means test, credit counseling requirement, and limits on serial filings (8 years between Ch 7 discharges, 4 years between Ch 7 and Ch 13 discharge, 2 years between successive Ch 13s). The automatic stay under 11 USC § 362 immediately halts most collection, foreclosure, repossession, and wage garnishment on filing. Federal student loans are dischargeable only on a showing of 'undue hardship' (Brunner test in most circuits).
Common Mistakes to Avoid
- Transferring assets to family members within 1-10 years before filing (fraudulent transfer)
- Running up credit card debt or taking cash advances in the 90 days before filing (presumptive fraud)
- Omitting assets, accounts, or recent property transfers from schedules (federal felony)
- Failing to take pre-filing credit counseling within the 180-day window
- Repaying friends/family loans in the 90 days before filing (preference; trustee can claw back)
- Filing Chapter 7 without checking the means test first
Official Resources
Related Resources on This Site
Forms
- voluntary petition individual
- schedule a b property
- schedule c exemptions
- chapter 13 plan
When to Get a Lawyer
- Any Chapter 13 case — the plan requires legal precision
- Business assets, partnerships, or self-employment income
- Recent property transfers, gifts, or large purchases (preference/fraud risk)
- Lawsuits or judgments pending against you
- Non-dischargeability complaints filed by creditors
Frequently Asked Questions
Will I lose everything I own?
Which debts are NOT wiped out by bankruptcy?
How long does bankruptcy stay on my credit report?
Can I file without a lawyer?
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.