What Documents Should You Gather when Filing For Bankruptcy?
Filing for bankruptcy is a challenging process. Regardless of whether you’re filing for Chapter 7 or Chapter 13, you’ll have to prepare all the necessary documents beforehand. Here’s a closer look at what essential documents you need to gather if you’re filing bankruptcy:
Tax Returns
In case of a Chapter 7 or Chapter 13 bankruptcy, you’ll have to provide filed tax returns for the past two and four years, respectively. If you claim income not reflected in your tax returns, you may also have to provide a letter of explanation. If you weren't required to file taxes, an affidavit of non-fling will be required. If you failed to file returns and are in the process of doing so, an explanation will likely be requested by the Trustee.
Income Documentation
Another important set of documents you need to provide to the court is proof of your income. If you’re a W2 employee, you’ll need to provide your pay stubs or other vital documents showing your income from your employer. On the other hand, if you’re a self-employed/independent contractor, you will need to provide a statement of profit and loss for each of the previous 6 months prior to filing. Make sure you’re adequately prepared to show bank statements verifying your business’s income and expenses. In addition, you may have to submit documentation of other sources of income, including rental properties, disability benefits, retirement funds, etc.
If you own a house, real estate, or other real property, you’re going to need to provide some proof of the property’s current balance and potentially the fair market value. Below are some of the property-related documents that you may need:
- Mortgage Statements that reflect the current balance due, as well as the monthly mortgage payments;
- Proof of Value: documentation indicating the current value/equity of your property.
You may want to make sure you prepare all of these documents in advance. If you can’t figure out what documentation you need to prepare, reach out to our office. Document preparation is a vital part of a successful bankruptcy proceeding.
Vehicle
Here’s what documents you may have to provide:
Recent loan statement showing how much you owe on the car and your monthly payments;
Letter of explanation if you are paying for and using a vehicle that is in someone else's name;
Bank and Stock Accounts
We will need the 6 months statements from all active (and closed if closed in the last 6 months) bank accounts. This incudes ALL pages and ALL accounts your name is attached too. You’ll have to disclose all of your bank accounts.
Apart from that, you’ll need to disclose documents and financial accounts, including;
- IRAs, 401, and other retirement accounts;
- General investment accounts;
- Pensions accounts
- If you have an account with money in it, you will need to provide the statements!
If you’ve been a part of legal proceedings in the last year, make sure you bring copies of all the paperwork to your bankruptcy lawyers. Here’s a closer look at which legal actions are of particular interest:
- Collection lawsuits
- Divorce actions
- Foreclosure notices
- Post-judgment legal actions, including liens or garnishments
Open and active legal proceedings can be crucial in your case. Having this information ill assist your bankruptcy attorney in determining how to move forward with the case. They may also be able to decide on the best ways to protect you from potential further financial harm.
You’ll be required to provide valid identification. This includes your driver’s license and your social security number.
If additional circumstances impact your bankruptcy, for example, if you are required to pay child support, alimony, or other unusual expenses, make sure you have supporting documents to show such legal obligations. For instance, you may provide a copy of a child support order or a marital settlement agreement documenting property distribution.
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