Gather Your Financial Records When Preparing to File for Chapter 7 or Chapter 13 Bankruptcy

If you have made the difficult decision to file for bankruptcy, you may wonder what to do next. In order to satisfy all of the bankruptcy court requirements, you’ll need to gather all of your financial records. You need to know how much is due to each creditor, and this is generally transferred to a bankruptcy worksheet your bankruptcy attorney provides you. When filling out the worksheet, all questions must be answered, as this is the same information that goes into filing the necessary forms with the bankruptcy court.

There are other documents and forms that must go along with the bankruptcy petition, including the following:

  • Schedules of your liabilities and assets
  • A listing of your current income and expenses
  • A list of contract obligations and unexpired leases
  • A statement of your  financial affairs
  • Copies of any payment advances received from your employer within the two months before filing your bankruptcy petition

You will also be required to attend a court-approved personal finance and credit counseling management course. This is required no matter the type of bankruptcy you choose to file.

If you have no consistent source of income, you may qualify for chapter 7 bankruptcy. Chapter 7 allows you to sell off certain assets and use those proceeds to pay the debt. Once all qualifying assets are sold, your debts are discharged. If you have a steady stream of income from employment, you probably won’t qualify for Chapter 7, but instead will be required to file Chapter 13. Chapter 13 allows you to pay your debts off over a set amount of time, while providing you with enough money to meet the demands of day-to-day living. For more information on filing for bankruptcy, contact us.

Please contact our law office concerning your case. The content of this article does not constitute an attorney-client relationship.