Debtors Must Follow These 8 Steps to Bankruptcy


Bankruptcy is a legal process to relieve debtors from their accrued debts. Depending on Bankruptcy Chapter of filing, the court may discharge all the debts or force creditors to accept a repayment plan. In all bankruptcy cases, debtors' assets are measured against creditors’ claims. A court assigned trustee supervises the repayment process in favor of creditors.


In order to file a Bankruptcy case, debtors need to do the following 8 steps:

  1. Collect and organize their financial statements


  2. Contact their local federal court to find the location of the Federal bankruptcy Court House. Or they can search using the zip code of their primary residence using the U.S. Courts Government site.

  3. Enter and complete "Credit Counseling for Bankruptcy". Depending on each state, certain agencies may perform the whole counseling or certain parts only. For a full list of approved credit counseling agencies, visit the U.S. Department of Justice List of Approved Providers.

  4. Visit the local Bankruptcy Court website and review "Local Court Rules and Filing Procedures"

  5. Prepare a list of all creditors and creditors' addresses


  6. Complete and sign "Voluntary Petition to enter Bankruptcy", form B-1. The form can be purchased from court clerk’s office or download the form for free from the United States Bankruptcy Court site.

  7. Pay filing fees


  8. Check mail daily, as the U.S. Mail is the Bankruptcy Court's standard method of communication.

Debtors must be aware of the following:


  • Bankruptcy will be on credit report for 10 years
  • Court assigned trustee acts in favor of creditors
  • Debtors are held responsible to submit the right requested documents on time
  • Court will not provide free legal counseling for debtors
  • Limited free legal counseling maybe available through local non-profit agencies
  • Debtors are responsible for all court fees at all times
  • In most Chapter 7 Bankruptcy cases, debtors will never see the judge unless an "objection" is raised
  • In Chapter 13 Bankruptcy cases, debtors will come before a judge to confirm repayment plan
  • Secured debts can’t be discharged
  • Court fines, judgments and fees can’t be included in Bankruptcy procedures.


    • Finally, Bankruptcy is a long and complex legal procedure that involves multifaceted vocabulary and steps. In addition, wrong filing can cause a Bankruptcy case to be dismissed, not discharged, meaning that debtors become liable for all debts, and associated legal fees, instantly. Therefore, debtors are advised to seek professional legal counsel through a licensed attorney.
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