Generally speaking, the most common types of bankruptcies are Chapters 7 and 13. Both are available to a wide range of individuals, though you must meet certain requirements to file for Chapter 7. My practice focuses on Chapter 11 bankruptcy , including small business filings under SubChapter V..

Debtors filing for protection under bankruptcy laws ultimately want their debts discharged. A discharge is a court order stating the debtor doesn’t have to pay the debt. Only some debts qualify for discharge—for instance, liens on collateral such as homes or autos don’t get discharged by bankruptcy. You also can’t discharge debts you’ve run up after filing for bankruptcy.

To file for bankruptcy protection, debtors first submit a petition to their local federal bankruptcy court (all bankruptcy cases are handled in federal court). The filing requires the debtor to submit a number of forms and lots of information about their financial situation, including tax returns, income documents, mortgage statements and bank account statements. Filers also have to take a pre-bankruptcy credit counseling course and a pre-discharge debtor education course from approved providers.

After filing, the debtor meets with creditors and a court-appointed trustee to answer questions under oath about the debtor’s ability to repay the debts. This is called a 341 meeting since it’s mandated by Section 341 of the Bankruptcy Code. Finally, after a period ranging from a few months to several years (depending on the type of bankruptcy and agreement you choose), the discharge is issued.

Some benefits come sooner. Filing for bankruptcy immediately blocks creditors from further phone calls, letters and other attempts to collect on most debts. But bankruptcy’s impact can linger much longer. Bankruptcy can stay on a credit report for up to a decade, making it more difficult and costly to obtain credit.