To begin the process the debtor has to go to court and file a petition, which is a formal written request. This request includes, the details of your finances (assets, income and debts) along with the list of assets being claimed as exempt from liquidation (assets such as automotive equity, disability payments and basic furniture and/or furnishings).

A court appointed trustee (a legal person who commits to the administering of the property within the filing) is assigned to the filing.  The trustee’s job is to review your filing, orchestrate the meeting with your creditors, review your eligibility for discharge, sell the assets proven to be non-exempt and finally to get the proceeds of the sale to the creditors.

The court procedures can take between 3 to 4 months and means that only certain assets can be claimed as exempt excluding real estate.