The first step is to collect all your personal financial data. This includes your tax returns and all existing debts, both secured and unsecured, for the past two years. You also have to gather your deed documents such as car or land titles, real estate owned, and other loan documents. A credit report would also be helpful.

Next, you file the bankruptcy. You can hire a bankruptcy attorney to do all the necessary steps for you or you could do so on your own. If you choose to do it yourself, fill in the necessary forms with the necessary information. These forms are downloadable online. You decide as well which type of bankruptcy you would file under. Two common types are Chapter 7 and 13. Chapter 7 is the recommended one but not all are qualified to file under it. Chapter 13 would require you to enclose with the petition your proposed repayment strategy. Once completed, file your petition to your local U.S. Bankruptcy Court.

Once submitted, you would be protected instantaneously under the Bankruptcy Code. Your creditors would be forbidden to make claims on any property or to make any direct contact with you. After a month, you would have to attend a meeting with all your creditors and their lawyers where negotiations usually happen. During the meeting, if no objection is raised, you should be notified after 4 – 6 months that your bankruptcy has been settled. Otherwise, a judge shall intercede.