Filing for Chapter 7 bankruptcy can be a new beginning for your finances, but there is more to the process than filling out some forms. Before you file your petition, you need to have all financial information ready, showing your income, debts, assets, and expenses. This will help your lawyer assess your financial situation and streamline the entire process.
Income records
Your lawyer will start by reviewing your current income. The qualification process for a Chapter 7 bankruptcy involves an “income means test” where your income status is compared to the mean income of people with a similar household size.
The documents that you need include:
- Recent paycheck stubs
- Income statement from being self-employed
- Statement on Social Security or disability payments
- Pension or other retirement income statement
- Unemployment or other governmental income benefit statement
It is possible that you get your income from different sources.
Tax returns
The majority of bankruptcy cases involve providing a copy of your past two years’ tax returns. The tax returns will provide proof of income and may also show assets or transactions you need to disclose.
If you do not have your tax returns available, your lawyer will be able to tell you what you should do.
Bank statements
Get all the details of your checking, savings, and money market accounts, normally for several months. This will help establish your financial status at the moment. It is important to get information about any joint accounts that you have.
A list of your debts
Listing all your creditors in full is an essential aspect of the bankruptcy procedure, and should include:
- Credit card debts
- Health care related debts
- Personal debts
- Car debts
- Mortgage debts
- Collection agency debts
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- Payday loans
Debts you plan to continue paying also need to be listed in your bankruptcy proceedings.
Asset information
Also required is your proof of ownership, which includes:
- Vehicle title and loan information
- Real estate information
- Retirement accounts information
- Investment accounts information
- Life insurance information
- Information on personal property with substantial value
It is essential to provide all the information to facilitate the evaluation of bankruptcy exemptions.
Monthly expenses
Your lawyer will also review your monthly expenditures for necessities like rent, utility bills, commuting charges, insurance, groceries, and so forth. Having access to all your latest bills would make the whole process smoother and simpler.
Be honest and thorough
Among the largest mistakes made by individuals before filing for bankruptcy is the omission of certain information, believing such information doesn’t really matter. However, the bankruptcy process entails complete disclosure of all one’s financial information. Omission of assets, debts, or income, even if done mistakenly, can result in unnecessary complications.
To find out what kind of documentation is required for your personal case, a skilled Indiana bankruptcy lawyer will assist in identifying additional documentation.
Talk to a Danville, IN, Bankruptcy Lawyer Today
Chris Arrington represents the interests of those who need to file for bankruptcy in Indiana. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.