What is the Bankruptcy Process?

The bankruptcy process involves filing a petition in federal bankruptcy court to have your debts either discharged (cancelled) or reorganized under a payment plan. The type of bankruptcy you file (Chapter 7 or Chapter 13) will determine the specifics of the process, including the requirements you must meet, the assets you may be able to keep, and the length of time the process will take. Before filing for bankruptcy, you may be required to attend credit counseling and meet with a bankruptcy attorney to discuss your options. After filing, you will be required to attend a meeting with creditors and a trustee appointed by the court, and comply with any court-ordered payment plans or reporting requirements. The ultimate goal of the bankruptcy process is to provide the filer with a fresh financial start.