# How to File for Bankruptcy: A Step-by-Step Guide
Filing for bankruptcy ranks among the most complex financial decisions you'll make. The process differs depending on whether you're pursuing Chapter 7 liquidation or Chapter 13 reorganization, and missteps can cost you money or delay relief.
Start by gathering your financial documents. You need a complete list of debts, assets, income, and expenses for the past six months. The bankruptcy court requires this documentation to assess your financial situation and determine which chapter applies to you.
Next, complete credit counseling through an approved agency. This mandatory requirement must happen before you file. The counselor reviews your budget and explores alternatives to bankruptcy. This step costs between $50 and $300.
File your bankruptcy petition with the federal bankruptcy court in your district. This paperwork includes schedules detailing your property, liabilities, income, and expenses. Filing fees run $335 for Chapter 7 and $310 for Chapter 13. You'll also pay attorney fees, which typically range from $1,500 to $3,500 for Chapter 7 cases.
After filing, an automatic stay immediately stops creditor calls, wage garnishments, and collection lawsuits. A bankruptcy trustee gets assigned to your case and schedules a meeting of creditors, usually within 21 to 40 days.
In Chapter 7 cases, the trustee liquidates non-exempt assets and distributes proceeds to creditors. The process takes three to six months. Chapter 13 creates a repayment plan lasting three to five years, allowing you to keep your property while paying back a portion of your debts.
Complete the second required credit counseling course before receiving your discharge. This course covers budgeting and financial management.
Consider consulting a bankruptcy attorney. Many offer free consultations and can navigate the filing process, answer