Find a Bankruptcy Lawyer

• All bankruptcies are filed in U.S. District Court, so it will be necessary to find an attorney who is qualified to work within that court system, which is different from state court systems. Some attorneys focus on bankruptcy cases and will be familiar with the federal court system. Most attorneys, understand that your debts could be wiped out if they are successful and will therefore demand an up-front payment.
  
  

Consider Bankruptcy Types

• Two main types of bankruptcy exist for consumers---Chapter 7 and Chapter 13. Chapter 7 wipes out your debts and requires selling assets that are of value in order to repay creditors. For many consumers, this may be little or nothing after protected assets are accounted for. Chapter 13 allows for a reorganization of debt and reduces the amount of money you must pay to creditors.
  
  

Gather Supporting Documentation

• In order to have a successful bankruptcy, you will need to prove the severity of your financial situation. You should collect all proofs of income, including paycheck stubs, tax returns and W-2s, as well as bills that you have. You will likely need to put together a list of your assets, minus exempted property, which includes homes and a vehicle, up to a certain amount. Other exemptions vary by state.
  
  

Make a Decision

• Once you have decided to file for bankruptcy, the next step is to inform your attorney of your intentions. He will draft the paperwork and have you sign the necessary forms. Those will be filed in court, along with the supporting documentation of financial hardship.
  
  

Go To Court

• Typically, the only time you will have to go to court is for a meeting of the creditors. A court-appointed trustee will ask you questions, largely based on information you presented, just to ensure that the information is true and complete. The trustee may ask other questions if a creditor so desires. This is likely to be the most stressful time of the process and is when an attorney should be with you.
  
  

Wait for the Ruling

• The final step in the bankruptcy process is the discharge. The court has reviewed the documentation and made a decision on the filing. A discharge means the court has completed the bankruptcy proceeding and issued an order according to law. Depending on the type of bankruptcy you choose, you may have a court-ordered repayment plan or your debts could be wiped clean.