This requires preparation and organization before you apply. Most importantly, you must gather the required papers for the financial documents that will be obtained and prepared. They will be the records relied upon by the courts and bankruptcy trustees who evaluate your case, so they must be accurate and complete.
Work Your Way Back from Income Statements
Income will have to be verified for the past six months or so. This would usually comprise pay stubs, tax returns, profit-and-loss statements (if self-employed), or documentation of unemployment or disability benefits. Those records assist in either qualifying you for bankruptcy or in determining the repayment plans under the Chapter 13 case.
Expense Information Goes Here
These expenses should show what the trustee appears to see going out of your pocket every month. Utility bills, rent or mortgage fees, insurance premiums, childcare, and any other fixed monthly charges should all be collected in one place. A detailed account of these expenses sheds light on your economic condition and backs up your bankruptcy filing.
Debts and Liabilities
Any debt, at all, should be in the notables: credit cards, personal loans, medical bills, mortgages, auto loans collection accounts. Be sure to state the account numbers, balances, and the name of the creditor. Skipping one can hold you up or, worse, destroy your case.
Property and Assets
All assets must be reported, regardless of magnitude: real estate, vehicles, bank accounts, retirement funds, valuable personal property, and, for a real-time twist, digital assets. You will be required to submit supporting documentation: deeds, titles, and account statements.
If You Own a Business, Check Business Records
If, in fact, you operate a company, then you will have supplemental documentation, including business tax returns, financial statements, and asset inventory. More information may be requested by trustees based on the size and type of business you own.
Organizing And Double-Checking
Being so precise is very much emphasized. Do organize your records in a way that is agreeable for the attorney and trustee to review. While working, pay double attention to make sure all required material is presented, and nothing is outdated before the actual submission of the bankruptcy petition.
Meticulously preparing financial documentation will not only ensure compliance but also smoothen and facilitate the bankruptcy process. Good documentation is the key to any successful filing.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of Bruner Law Firm, specializing in bankruptcy law, estate planning, and business litigation.
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