Bankruptcy begins with the filing of a petition and other forms with the bankruptcy court. The debtor must gather all his or her financial information including debts owed to creditors. The following information must be filed concurrent with or after the petition:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of certain contractual obligations and leases
- A statement of finances
- Evidence of payment advances from an employer to the debtor within 60 days before the filing of the petition
- Other assets specified under § 521(c) of the Code
After filing the court will enact an automatic stay preventing creditors from contacting the debtor or staking a claim to any property from date of filing. Most bankruptcies require a 314 meeting in which the debtor negotiates with the creditor.
Upon resolution of bankruptcy, the court requires the debtor to attend credit counseling and a financial management course.
