- 1). Take a credit-counseling course from a federally approved counselor in your state. Federal law requires that you attend credit counseling in the six months before you file for bankruptcy, the U.S. Courts website states; the Justice Department has a link to a list of counselors on its website.
- 2). Calculate your means to determine the type of bankruptcy for which you qualify. To file Chapter 7, your average income for the six months before you file must be less than your state's median, unless you pass a "means test" adjusting your income; the Nolo legal website has a calculator available for that test. You can only file Chapter 13 if you make enough money that a payment plan is worthwhile, and if your debts fall below the federal maximum. In 2010, the U.S. Courts stated a debt limit of $1,081,400.
- 3). Look up what property your state exempts from sale in Chapter 7. Florida, for example, offers an unlimited home exemption -- no matter how much it's worth, you don't have to sell it -- while other states offer no exemption at all; some exempt thousands of dollars in personal property, while others won't exempt tools or equipment you need for work. Even if you qualify for Chapter 7, if the trustee can sell off property you want to keep, Chapter 13 might be a better choice.
- 4). Download forms from the U.S. Courts website and file them with the bankruptcy court for your district; you can find the right court on the website's court locator. You'll also have to file complete details of your financial situation and pay the bankruptcy fee. If you're filing Chapter 7 and your income falls below 150 percent of the federal poverty guideline, the court may agree to waive the fee.
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