How Bankruptcy Works: A Step-by-Step Guide

Filing personal bankruptcy follows a clear sequence. Here’s a plain-English overview of each step, from pulling your credit report to receiving your discharge. If you’d like help at any point, email martha@bankruptcysage.com for a free 30-minute consultation.

  1. Pull your credit report at annualcreditreport.com and compile a list of creditors — names, addresses, account numbers (last 4 digits), and balances.
  2. Check the means test to see whether you qualify for Chapter 7 or Chapter 13. Start by comparing your gross annual income to the California median for your household size. If you’re above the median, you might still pass the full means test — but it gets technical fast.
  3. Complete the forms. You can do this yourself, use a petition preparer, or hire an attorney. The forms are the same for all Bankruptcy Courts so you can use the Central District forms wherever you live.
  4. Take a credit counseling course and get your completion certificate. Find an approved provider here — make sure to filter by California. Or you can use the provider that I recommend: evergreenclass.com. If they ask you for an attorney code, mine is EFC455. If you take both the Credit Counseling and post-petition Financial Management courses from them, they’ll give you a free course on how to re-build your credit after bankruptcy.
  5. File your petition at the correct bankruptcy court (use the zip code lookup on the court website). Filing fees: $338 for Chapter 7, $313 for Chapter 13. Payment must be by cashier’s check or postal money order payable to U.S. Bankruptcy Court — no cash or credit cards.
  6. Attend your 341(a) meeting of creditors. The trustee will ask questions about your assets and liabilities. Most hearings are now held on Zoom — you’ll receive login details after filing.
  7. Complete a post-filing financial management course within 60 days of your 341(a) date and file the certificate. You can typically use the same provider as your Credit Counseling course.
  8. Receive your discharge — about 60 days after your 341(a) hearing (the first date; not any continued date). You’ll usually receive your discharge a few days later, and most cases close shortly after.

Want help with any of these steps?

I’m Martha Warriner, a California bankruptcy attorney with more than 40 years of experience. I guide individuals through every step of Chapter 7 and Chapter 13 — the paperwork, the process, and the stress.