When preparing to file bankruptcy, the first you're going to do is complete a form called the Voluntary Petition. These forms are "only" two pages long. It's as easy as that. However, the Voluntary Petition requires the addition and inclusion of 10-20 completed schedules and forms.

Which schedules you need

You'll usually need one that lists all of your personal property — cars, boats, TV sets, computers, clothing … everything. You'll also need to list all of your debts — each credit card, all your mortgages, every medical bill … even items you thought you forgot about. You will also need to list all of your assets, income, and monthly expenses. Doing all of this can — and will — take hours. Just pulling together all of the information scattered about will be time consuming. If you run your own business, it will take even more time to gather and list all the schedules. You will also need business bank statements, and income and expense statements for the past 6-12 months. Having a credit report probably wouldn't hurt.

There are many judgment calls to make when completing the Voluntary Petition for bankruptcy. Make the wrong call and your case will be discharged, or worse! You could lose your car, or other valuable possessions, to pay the creditors you wanted to get away from. The knowledgeable experience of a bankruptcy attorney is extremely valuable when helping with the Voluntary Petition.

After you fill those out, you're going to need to find out all the forms that are used by your local bankruptcy court. Although bankruptcy is federal law, there are many state and local exemptions. These local forms vary from jurisdiction to jurisdiction. Forms included with software packages you pick up at the local computer store are not complete or up to date, as these local forms change regularly for all the various jurisdictions across the country.

Once all forms are complete — and you feel good that you've done everything correctly — you are now ready for your one opportunity to discharge all debt. Next, go to the local bankruptcy courthouse and file your paperwork. Just to file, the fees usually cost around $200. After you file the papers, your creditors will be notified, and then you wait for your Meeting of Creditors (341a). If any of the creditors object to any of the your statements on your petition, you may have a separate hearing to attend on those issues. The court-appointed trustee will closely scrutinize your papers, and you will be put under oath.