
Are You Filing Bankruptcy Correctly? A Compliance Checklist
Filing for bankruptcy can be a stressful and complicated process, but it can also provide a fresh financial start. However, it’s crucial to follow all the necessary legal steps to ensure you meet federal and state requirements. Making mistakes during the filing process can lead to delays, additional costs, or even dismissal of your case. This guide provides a comprehensive checklist to help you navigate the process and avoid common pitfalls.
Understanding Bankruptcy: What It Involves
Bankruptcy allows individuals or businesses struggling with debt to seek relief by eliminating or restructuring their obligations. The process is overseen by federal bankruptcy courts to ensure compliance with legal procedures. Filing correctly is essential to receive the intended benefits and avoid legal complications.
There are several types of bankruptcy, with Chapter 7 and Chapter 13 being the most common for individuals:
- Chapter 7 Bankruptcy: Liquidates non-exempt assets to pay creditors and discharges most debts.
- Chapter 13 Bankruptcy: Involves creating a repayment plan to pay back debts over three to five years, allowing you to keep your property.

Step-by-Step Compliance Checklist for Filing Bankruptcy
Below is a detailed checklist to ensure you’re on the right track throughout the bankruptcy process.
1. Determine Your Eligibility
Different chapters of bankruptcy have specific eligibility criteria. Filing without meeting these requirements can result in your case being dismissed.
- Chapter 7:
- You must pass the means test to qualify. This test compares your income to the median income in your state.
- If your income is above the threshold, you may still qualify by showing that your disposable income (after expenses) is too low to repay debts.
- Chapter 13:
- You need a steady income to propose a repayment plan.
- There are also limits on the amount of secured and unsecured debt you can have to qualify for Chapter 13.
2. Complete Credit Counseling
Before filing bankruptcy, you must complete a credit counseling course from an approved agency. This is a mandatory step, and failure to provide proof of completion can result in your case being dismissed.
- The course must be completed within 180 days before filing.
- After completing the session, you will receive a certificate of completion that must be submitted with your bankruptcy paperwork.
3. Gather All Necessary Financial Documents
To correctly file bankruptcy, you need to provide complete and accurate financial information. Missing or incorrect documentation could delay your case or lead to its dismissal.
Documents you’ll need include:
- Recent pay stubs or proof of income
- Tax returns from the past two years
- Bank statements for the last 3-6 months
- Credit card and loan statements
- Asset documentation (e.g., mortgage statements, car titles)
Keeping organized records helps ensure that your case proceeds smoothly.

4. Fill Out Bankruptcy Forms Correctly
Bankruptcy requires filling out detailed paperwork, including official bankruptcy forms provided by the U.S. courts.
- Voluntary Petition: The document that initiates your case.
- Schedules of Assets and Liabilities: A detailed list of what you own and owe.
- Statement of Financial Affairs: Information about your income, expenses, and financial history.
- Exemption Forms: Allows you to protect specific assets from liquidation in Chapter 7 or Chapter 13.
Make sure every form is filled out accurately. Errors or omissions can raise red flags with the bankruptcy trustee.
5. File Your Case with the Bankruptcy Court
Once your paperwork is complete, you’ll need to file it with the appropriate federal bankruptcy court in your jurisdiction. There are filing fees that vary depending on whether you’re filing for Chapter 7 or Chapter 13:
- Chapter 7 Filing Fee: $338
- Chapter 13 Filing Fee: $313
If you can’t afford the filing fee, you may apply to pay it in installments or request a fee waiver if your income is below certain thresholds.
6. Provide the Required Disclosures to the Bankruptcy Trustee
A bankruptcy trustee is assigned to oversee your case and ensure everything is in order. As part of this process, you must submit the following:
- Tax returns from the previous year
- Pay stubs or proof of income from the last 60 days
- Bank statements for the relevant time period
Failing to provide these documents promptly can lead to delays or dismissal of your case.

7. Attend the 341 Meeting of Creditors
After your case is filed, you’ll receive a notice to attend the 341 Meeting of Creditors. This meeting allows the trustee and your creditors to ask questions about your financial situation and bankruptcy filing.
- Be prepared: Review your paperwork and bring any requested documents.
- Answer honestly: Lying or withholding information could result in your case being dismissed and could even lead to criminal charges.
Typically, creditors do not attend these meetings unless they have specific concerns.
8. Complete the Post-Filing Debtor Education Course
To receive your bankruptcy discharge, you must complete a debtor education course from an approved provider. This course focuses on financial management to help prevent future financial problems.
- You must complete the course within 60 days after the 341 meeting.
- Once completed, submit your certificate of completion to the court.
9. Stay Current on Chapter 13 Payments (If Applicable)
If you filed for Chapter 13 bankruptcy, it’s essential to stay on top of your repayment plan. Missing payments can lead to dismissal or conversion of your case to Chapter 7.
- Make sure you understand the terms of your repayment plan.
- Set up automatic payments or reminders to avoid missing due dates.
10. Watch for Any Objections from Creditors
Creditors have the right to object to your bankruptcy filing if they believe it’s improper or fraudulent. If objections arise, your attorney will need to respond promptly.
In some cases, creditors may object to the discharge of specific debts, such as:
- Debts incurred through fraud
- Student loans (in most cases)
- Child support or alimony payments
11. Receive Your Bankruptcy Discharge
The goal of filing bankruptcy is to receive a discharge of your debts. Once your case is completed, the court will issue a discharge order, officially eliminating qualifying debts.
- Chapter 7: Discharge typically occurs within 3-6 months after filing.
- Chapter 13: Discharge happens after completing the repayment plan (3-5 years).
Some debts, like student loans, taxes, and child support, may not be discharged in bankruptcy.

Common Mistakes to Avoid When Filing Bankruptcy
Even a small mistake can derail your bankruptcy case. Here are some common errors to watch out for:
- Failing to List All Debts and Assets: All debts and assets must be disclosed, even if you don’t want to include certain debts in the bankruptcy.
- Transferring Assets Before Filing: Transferring property to family or friends before filing can be seen as an attempt to hide assets.
- Missing Deadlines: Bankruptcy involves strict deadlines for submitting paperwork and completing courses.
- Filing the Wrong Chapter: Choosing the wrong type of bankruptcy can complicate your case.
Do You Need an Attorney to File Bankruptcy?
While you can file bankruptcy without a lawyer, hiring an experienced bankruptcy attorney is often recommended. A lawyer can help you:
- Choose the right chapter of bankruptcy
- Complete all forms accurately
- Meet filing deadlines
- Respond to any objections from creditors
An attorney ensures your case proceeds smoothly and reduces the risk of dismissal or legal complications.
Filing for bankruptcy can provide much-needed relief from overwhelming debt, but it’s essential to follow all legal steps correctly. By using this compliance checklist, you can stay on top of the necessary paperwork, deadlines, and requirements to ensure your case is successful. Completing credit counseling, gathering the right financial documents, and cooperating with the bankruptcy trustee are key components of a smooth process. Whether you choose to file on your own or hire an attorney, paying attention to details will help you avoid delays, dismissal, or legal trouble. If done correctly, bankruptcy can offer a clean slate and set you on the path toward financial stability.