What are the steps to file bankruptcy?
The main steps are: (1) complete credit counseling, (2) take the means test, (3) gather financial documents, (4) fill out the petition and schedules, (5) file the petition with the bankruptcy court, (6) attend the 341 meeting of creditors, (7) complete financial management course, and (8) receive your discharge.
How much does it cost to file bankruptcy?
Chapter 7 filing fees are $338 and Chapter 13 fees are $313. Attorney fees range from $1,000-$2,000 for Chapter 7 and $2,500-$5,000 for Chapter 13. Credit counseling and debtor education courses cost approximately $25-$50 each. Fee waivers are available for qualifying low-income filers.
What documents do I need to file bankruptcy?
You need: 6 months of pay stubs, 2 years of tax returns, bank statements for all accounts, a list of all debts and creditors, vehicle titles and registrations, mortgage statements, recent bills, insurance policies, and any lawsuit or garnishment papers. Our checklist at howtofilebankruptcy.org/documents-checklist.html has the complete list.
Do I need to take a class before filing bankruptcy?
Yes. You must complete a credit counseling course from an approved provider within 180 days before filing. After filing, you must complete a debtor education (financial management) course before receiving your discharge. Both courses are available online and cost approximately $25-$50 each.
Can I file bankruptcy online?
You can prepare your bankruptcy petition electronically using court-approved software. However, the actual filing must be done through the court's electronic filing system (CM/ECF) or in person at the courthouse. Some courts allow pro se filers to submit petitions by mail.
How long does the bankruptcy process take?
Chapter 7 typically takes 3-6 months from filing to discharge. Chapter 13 takes 3-5 years for the plan, plus 1-2 months for the discharge after plan completion. The 341 meeting is usually scheduled 30-45 days after filing.
What is the 341 meeting of creditors?
The 341 meeting is a brief hearing where the bankruptcy trustee asks you questions under oath about your financial situation and petition. It typically lasts 5-10 minutes. Creditors may attend and ask questions, but they rarely do. You must attend -- failure to appear can result in case dismissal.
Can I file bankruptcy without going to court?
The 341 meeting is technically held outside the courtroom (in a meeting room or the trustee's office), but you must attend. If no creditor objects and no other issues arise, you will not need to appear before a judge. Many 341 meetings are now conducted by phone or video.
What is an emergency bankruptcy filing?
An emergency filing (also called a 'bare bones' filing) allows you to file just the petition, creditor matrix, and credit counseling certificate to immediately trigger the automatic stay. You then have 14 days to file the remaining schedules and documents.
What happens after I file the bankruptcy petition?
The automatic stay immediately takes effect, stopping creditor actions. A case number and trustee are assigned. The court schedules the 341 meeting for about 30-45 days out. Creditors receive notice and have deadlines to file claims or objections.
Do I list all my debts when filing?
Yes. You must list ALL debts, assets, income, and expenses on your bankruptcy schedules. Intentionally omitting debts can result in those debts being declared nondischargeable. Even debts you want to keep paying (like your mortgage or car loan) must be listed.
Can I file bankruptcy if I have a job?
Yes. Having a job does not prevent you from filing bankruptcy. Your income determines which chapter you qualify for through the means test. Many employed people file Chapter 7 if their income is below the state median, or Chapter 13 if their income is higher.
What forms do I need to file bankruptcy?
The main forms include: Petition (Form 101), Schedules A/B through J (assets, debts, income, expenses), Statement of Financial Affairs (Form 107), and Means Test forms (122A or 122C). All official forms are free at uscourts.gov. Local forms may also be required by your court.
Can I keep my bank account during bankruptcy?
Yes. You can keep your bank accounts open during bankruptcy. However, the trustee will review your account balances and transactions. Keep only exempt funds in your accounts on the day you file to avoid complications.
What happens to my credit cards when I file bankruptcy?
All credit card accounts included in your bankruptcy will be closed by the issuers. You must stop using credit cards once you decide to file. Using credit cards with intent to discharge the debt can be considered fraud and make those debts nondischargeable.