Filing for bankruptcy is a difficult financial decision that many individuals and businesses face when debts become unmanageable. In 2025, bankruptcy laws, attorney services, and filing processes have become more streamlined, but the complexity of legal paperwork still makes it important to work with an experienced bankruptcy attorney. Knowing the steps to file for bankruptcy with an attorney can make the process easier, reduce stress, and ensure you make the right financial decisions for your future.
This guide explains the complete process of filing bankruptcy with a lawyer, important things to consider, and frequently asked questions.
Why Hire a Bankruptcy Attorney in 2025?
Filing for bankruptcy without legal guidance can be risky. Bankruptcy involves court filings, creditor negotiations, and strict deadlines. A bankruptcy attorney ensures that your paperwork is correct, represents you in court, and advises you on the best bankruptcy chapter to file under.
Key benefits of hiring a bankruptcy attorney include:
- Legal knowledge about updated 2025 bankruptcy laws.
- Proper evaluation of your financial situation.
- Guidance on whether to file under Chapter 7, Chapter 11, or Chapter 13.
- Assistance in protecting assets that may be exempt.
- Strong representation in bankruptcy court.
Step 1: Evaluate Your Financial Situation
Before filing for bankruptcy, you and your attorney will carefully review your financial situation. This includes looking at your:
- Income sources
- Total debts (credit cards, loans, mortgages, medical bills)
- Assets (home, car, savings, investments)
- Monthly expenses
Your attorney will help you understand whether bankruptcy is the best solution. In some cases, debt consolidation or settlement may be an alternative. If bankruptcy is the right choice, the attorney will guide you toward the correct chapter.
Step 2: Choose the Right Type of Bankruptcy
In 2025, individuals and businesses generally file under these bankruptcy types:
- Chapter 7 Bankruptcy – Also called “liquidation bankruptcy,” where assets may be sold to repay creditors. Best for those with limited income and high unsecured debts.
- Chapter 13 Bankruptcy – Known as “reorganization bankruptcy,” where you create a repayment plan for debts over three to five years. Best for individuals with steady income.
- Chapter 11 Bankruptcy – Often used by businesses to restructure debts and continue operations.
Your bankruptcy attorney will analyze your finances and advise you on the most suitable chapter.
Step 3: Credit Counseling Requirement
U.S. bankruptcy laws require all individuals filing for bankruptcy to complete a credit counseling course from an approved provider. In 2025, many of these courses are available online. Your attorney will provide you with a list of approved agencies.
This step is mandatory before you can file your bankruptcy petition. The counseling session helps you understand alternatives to bankruptcy and prepares you for financial recovery.
Step 4: Gather and Prepare Documentation
Your bankruptcy lawyer will help you prepare all necessary documents. This paperwork usually includes:
- Tax returns (past 2 years)
- Pay stubs and proof of income
- Bank statements
- Debt records (credit card bills, loan statements)
- Asset details (home, vehicles, retirement accounts)
- Monthly expenses
Having these documents ready ensures your bankruptcy petition is accurate and complete.
Step 5: Filing the Bankruptcy Petition
Once the paperwork is ready, your attorney will file your bankruptcy petition with the bankruptcy court. The petition includes detailed forms that list your income, debts, assets, and expenses.
When your attorney files the petition:
- An automatic stay goes into effect – This prevents creditors from contacting you, garnishing your wages, or continuing collection lawsuits.
- Your case officially begins in bankruptcy court.
Step 6: Meeting of Creditors (341 Hearing)
After filing, you must attend a meeting of creditors, also called the 341 hearing. Your bankruptcy attorney will attend this meeting with you.
At this meeting:
- A bankruptcy trustee reviews your financial information.
- Creditors may ask questions about your debts and assets.
- Your attorney ensures that the meeting goes smoothly and protects your rights.
This is often the only court-related appearance required for most bankruptcy cases.
Step 7: Completing a Financial Management Course
Another legal requirement in 2025 is to complete a financial management or debtor education course after filing. This course teaches budgeting, managing finances, and avoiding future debt problems.
Your attorney will guide you to approved providers and ensure you complete the course on time, as failure to do so can prevent your debts from being discharged.
Step 8: Court Review and Discharge of Debts
Once all requirements are met, the bankruptcy court reviews your case. If approved, your eligible debts are discharged.
- In Chapter 7, debts are usually discharged within a few months.
- In Chapter 13, debts are discharged after the repayment plan is completed.
Your attorney will notify you when your discharge is finalized and explain which debts are eliminated and which may remain (like student loans or child support).
Step 9: Rebuilding Credit After Bankruptcy
Filing for bankruptcy impacts your credit score, but it is not the end of financial stability. With your attorney’s advice, you can begin rebuilding your credit. Steps include:
- Paying all bills on time.
- Keeping credit utilization low.
- Using secured credit cards responsibly.
- Monitoring your credit report for errors.
Many people regain financial health within a few years after bankruptcy.
Cost of Filing Bankruptcy with an Attorney in 2025
The cost of bankruptcy varies depending on the type and complexity of your case. Typical expenses include:
- Attorney fees (can range from $1,000 to $5,000 or more depending on chapter and complexity).
- Court filing fees (around $300–$400).
- Credit counseling and debtor education course fees (usually under $100 each).
Your attorney may offer payment plans to make legal representation affordable.
Common Mistakes to Avoid When Filing for Bankruptcy
- Hiding assets from your attorney or the court.
- Taking on new debt before filing.
- Missing credit counseling or debtor education courses.
- Filing without legal help, leading to paperwork errors.
- Choosing the wrong bankruptcy chapter.
A bankruptcy lawyer ensures you avoid these mistakes.
Conclusion
Filing for bankruptcy is a challenging process, but with the right attorney, it becomes manageable and less stressful. The steps to file for bankruptcy with an attorney in 2025 include evaluating finances, choosing the right bankruptcy type, completing counseling, preparing documents, attending court hearings, and receiving a discharge. A bankruptcy lawyer ensures that you understand every step, protects your rights, and helps you move toward financial recovery.
Working with an experienced attorney gives you peace of mind and increases your chances of successfully getting debt relief.
FAQs
Q1: Do I need a bankruptcy attorney to file in 2025?
While you can file without a lawyer, working with a bankruptcy attorney ensures accuracy, avoids mistakes, and protects your rights in court.
Q2: How long does the bankruptcy process take?
A Chapter 7 bankruptcy usually takes 4–6 months, while a Chapter 13 repayment plan lasts 3–5 years.
Q3: Will bankruptcy clear all my debts?
Most unsecured debts like credit cards and medical bills are discharged. However, student loans, child support, and certain taxes may not be eliminated.
Q4: How much does it cost to hire a bankruptcy lawyer in 2025?
Attorney fees vary but usually range from $1,000 to $5,000 depending on the complexity of your case.
Q5: How will bankruptcy affect my credit score?
Bankruptcy lowers your credit score, but with responsible financial habits, you can start rebuilding credit within 1–2 years.
Q6: Can bankruptcy stop foreclosure or wage garnishment?
Yes, once your attorney files the bankruptcy petition, an automatic stay is issued, which temporarily stops foreclosure, wage garnishments, and debt collection.
