Bankruptcy Law & Filing Steps

Know the law in your state and the steps you need to take to file.

The basic steps to file for bankruptcy are similar in both Chapter 7 and Chapter 13 Bankruptcy Law. The first step involves a conference with an attorney regarding rights, and procedures (although this wouldn't occur if you file bankruptcy without an attorney).

Next is preparing the documents to file the bankruptcy petition. These documents are quite extensive, and can easily involve hundreds of pages. Once the documents are complete, then they must be filed with the U. S. District Court, Bankruptcy Division, in your area. At this time, you would pay a filing fee, usually around $200. This fee can be waived if the proper waiver is filed and approved by the Court.

Once the Court accepts the filing, your creditors will receive a notice from the Court advising of your filing, and when the first meeting will be held. This is called a “Meeting of Creditors." Any of your creditors, who wish to question you about your debt, assets, etc., can appear at this meeting. If a creditor wishes to make an objection to your filing bankruptcy, they will do it at this time, as well. In most instances, this is the only meeting that will occur for the majority of debtors.


We recommend you find a reputable attorney in your area, to file bankruptcy because the Court is very strict, and one error on your forms could cause them to be rejected. You would then have to revise the documents, and resubmit, hoping they would be accepted. Hiring a bankruptcy attorney gives you representation during the actual court proceedings, and they will work in your best interests and help protect your assets.

Bankruptcy Law Liquidation Exemptions

U. S. Bankruptcy Law allows for some generous liquidation exemptions of property including the ability to keep your home, a car, personal clothing, household furniture, etc. There are specific Schedules within the Bankruptcy documents where you list these items, and their estimated value.

One of the options you have, as a debtor, is to reaffirm a debt on which you have filed. This means that you sign a legal document agreeing to pay the debt, after the bankruptcy. Some instances where you may want to reaffirm a debt include the mortgage on your home if you are claiming exemption for the home. Keep in mind, if you claim an exemption on property that has a secured loan against it, such as a car or house, in most cases, you will need to reaffirm the debt on that property for the exemption to be allowed.

State Amendments To Bankruptcy Law

Many individual states have included amendments to the Federal Bankruptcy Law which change the way a bankruptcy would work in that state. It is extremely important that you check with your state as to what amendments are in effect prior to filing bankruptcy.


It's so important to understand the laws relating to your state before you decide to file bankruptcy. A qualified bankruptcy attorney can easily tell you which exemptions apply in your state, or you can wade through the exemptions, in legaleze, via the Map of Districts that offers access to State Revisions to Bankruptcy Laws for the United States District Court.

Not sure if bankruptcy is right for you? Avoid finance companies offering debt-consolidation plans. These companies may charge high interest rates and tie up much of your property as collateral. Compare your options to consolidate debts, or get a free debt evaluation now .

Find out if you can reduce your monthly debt payments by up to 57%! Get real help that will assist you in finding a way to pay your debts and negotiate with your creditors.


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