The bankruptcy process can feel overwhelming, but it follows a clear, predictable path. Here is exactly what happens from start to finish.
Complete a credit counseling course from an approved agency ($15-25). Gather documents: last 2 years of tax returns, 6 months of pay stubs, bank statements, vehicle titles, mortgage statements, and a list of all debts and assets.
Your petition, schedules, and statements are filed with the District of Arizona. The automatic stay takes effect immediately. All collection calls, lawsuits, garnishments, foreclosures, and repossessions must stop.
You attend a brief meeting of creditors. The trustee verifies your identity, asks questions about your finances, and reviews your petition. Bring photo ID and Social Security proof. Most meetings last 5-10 minutes.
Complete a second financial education course ($10-25). This must be done before the court will grant your discharge.
If no objections are filed, the court enters your discharge order approximately 60 days after the 341 meeting. Eligible debts are eliminated.
The trustee files a final report and the case is closed. Total time from filing: typically 3-4 months.
Complete credit counseling. Work with your attorney to develop a feasible repayment plan.
Petition and proposed plan filed. Automatic stay takes effect. Foreclosures and repossessions stop immediately.
Your first monthly payment to the Chapter 13 trustee is due 30 days after filing, even if your plan has not been confirmed yet.
Similar to Chapter 7, but the trustee also reviews your proposed repayment plan and may request modifications.
The court decides whether to approve your plan. If approved, you continue monthly payments as scheduled.
Make monthly payments to the trustee for 3-5 years. Report income changes. File tax returns on time.
Complete the debtor education course. The court enters a section 1328 discharge, eliminating remaining eligible unsecured debts.
The automatic stay is one of the most powerful protections in bankruptcy law. The moment your petition is filed, creditors must immediately stop:
Creditors who violate the automatic stay can be held in contempt of court and ordered to pay damages.
Exception: If you have had a prior bankruptcy case dismissed within the past year, the automatic stay may be limited to 30 days or may not apply at all. Check your eligibility before filing.
The 341 meeting is a brief hearing where the trustee asks questions under oath about your finances. Bring photo ID and Social Security proof. Most meetings last 5-10 minutes.
The automatic stay takes effect the moment your petition is filed. It stops collection calls, lawsuits, garnishments, foreclosures, and repossessions.
In Chapter 7, about 3-4 months after filing. In Chapter 13, after completing your 3-5 year plan.
Chapter 7 stays on your credit report for 10 years; Chapter 13 for 7 years. Many filers see scores start recovering within 1-2 years. Learn about rebuilding credit.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new discharge.
Free Discharge Screener