Choosing a Chapter

• The first step in completing a bankruptcy petition is determining which bankruptcy chapter is most appropriate for you. Chapter 7 bankruptcy typically lasts three to six months and may require you to forfeit certain valuable assets to the bankruptcy trustee. The trustee will liquidate these assets and distribute them to your creditors. A Chapter 13 bankruptcy can last as long as five years and requires you to repay at least some of your debt. In return, you do not have to surrender any assets to the court or to creditors.
  
  

Filing a Petition

• In order for the court to review your case, you must provide information on every aspect of your financial life on your bankruptcy petition. A bankruptcy petition consists of numerous schedules, where you list your personal property and debts along with any sources of income. If the court determines that your income is too high to file Chapter 7, your may have to file a Chapter 13 bankruptcy.
  
  

Meeting of Creditors

• In most Chapter 7 cases, you only have to make one appearance before a bankruptcy official. Known as the Section 341 meeting or the "meeting of creditors," this meeting is generally short and involves the bankruptcy trustee asking you a few questions about your petition. Creditors are invited to attend but rarely do. If you file a Chapter 13 bankruptcy, in addition to the meeting of creditors you will also have to attend a meeting to confirm your payment plan.
  
  

Discharge

• If you file Chapter 7 bankruptcy, the court must grant you a discharge 60 days after your meeting of creditors as long as there are no objections from your creditors or the trustee. For Chapter 13 cases, discharge is held off until the completion of the payment plan. Most debts are eligible for discharge, although some notable exceptions include back taxes and payments for alimony and child support.
  
  

Residual Effects

• A Chapter 13 bankruptcy will remain on your credit report for 7 years, while a Chapter 7 will appear for 10 years. During that time, any potential creditor, such as a home or car lender, will see your bankruptcy and may charge you a higher interest rate for a loan, or even deny you credit altogether. You will also have to answer yes to many job applications that ask if you have ever declared bankruptcy, a fact that might hinder your search for a job.