GETTING STARTED:
General Information:
Once you begin considering bankruptcy as an option, you will probably want to know what documents and information you need to gather before you file.
The first question that you will need to have answered is whether you qualify to file for a Chapter 7 Bankruptcy or whether you will need to file for Chapter 13 protection. This determination is not as easy as it once was. In order to receive a Chapter 7 discharge, you first need to pass the Means Test.
Your income from all sources for the last 6 months and your actual monthly expenses will be needed to accurately complete the Means Test. Do not forget to include expenses that are paid bimonthly, every six months or annually. For example, homeowner association fees, car and home insurance or taxes that are not paid as part of your mortgage payment. For these expenses, determine what you need to save monthly to pay the expense when it is due and use that amount.
The calculations for the Means Test are based upon the last six months of your financial life and the data used is then annualized. For this reason, I recommend creating a list for each month before adding together the totals. This will also save time later as the information must be accurate as of the date you file. Since it is possible that you will not file for bankruptcy within the same calendar month of your initial consultation with my office, it will be easier to update the totals if we can just drop off the older information to add the most recent month. This must be accurate - so no estimating!
If you are not sure you have everything listed, our Income and Expense Worksheet may be useful.
Also, you will need your government issued identification (for example a drivers license or state issued photo I.D.) and you social security card. If you have these items, bring them to your initial meeting.
PREPARING TO FILE
If you decide to file bankruptcy, you will need to gather a number of additional documents. The information you gather and provide will assist in the preparation of your petition and supporting schedules. It certainly does not hurt to begin gathering documents and information now. As a general rule, before filing for bankruptcy you will need to know and have documentation of your:
1.
Income and expenses;
Income and expenses;2.Property (including cash and money in the bank); and,
Property (including cash and money in the bank); and, 3.Debts, including who and what you owe, the type of debt and the current address of the creditor.
Debts, including who and what you owe, the type of debt and the current address of the creditor.You will also need all of the documents associated with these items. The bankruptcy trustee will require that you produce at least 6 months of your records and several years of tax returns.
The easiest way to work through this process is to start thinking about each item on the above list and the documents that support them. For example, documents that support your income include your pay stubs, 1099 forms, tax returns and any record of receipts or sales, if you are self employed or have a small business. Your expenses may include phone, gas, electric and cable bills in addition to insurance premiums, and the cost of food and clothing. Canceled checks and records of online payments will be required.
A few examples of property would include your home, car, bank accounts IRA, or 401k. You will need to have the deed to your home or lease agreement if you rent, copies of all mortgages, your title, registration and loan or lease documents for your car, your monthly bank statements, canceled checks, your most recent 401k and IRA statements. An example of documents related to your debts would include copies of your last 6 months of credit card statements, canceled checks and bank statements.
You may have noticed that some of these categories overlap. Don’t worry about that at this point. The important thing is to begin gathering and organizing the documents and information that will be needed to file for bankruptcy so that you can get your financial fresh start.
