Documents Needed to File for Chapter 7 Bankruptcy
Chapter 7 bankruptcy offers relief to individuals, partnerships, corporations, or other business entities struggling with overwhelming debt. However, Chapter 7 bankruptcy is popular among individuals. Unlike Chapter 13 and Chapter 11 bankruptcies, Chapter 7 bankruptcy does not involve a repayment plan. Instead, the bankruptcy trustee sells the debtor’s nonexempt property and uses the money to pay creditors per the provisions of the Bankruptcy Code. After assets have been used to repay debts, the court typically issues a discharge order, which releases the debtor from personal liability for most of the remaining debts. If you are considering filing for Chapter 7 bankruptcy, you likely want to know the information you need to begin the process. Below are some of the essential documents you need to file for Chapter 7 bankruptcy.
Income Documentation
To file for Chapter 7 bankruptcy, you need documents showing your income. These include your pay stubs for the past six months, W-2 forms, and tax returns for the last two years. You will also need to provide evidence of other income sources, such as disability or social security funds. This information is vital for assessing your financial situation and whether you qualify for Chapter 7 bankruptcy under the means test.
If you have a business, you will need to provide a profit and loss statement and bank statements to verify the profit and loss amounts.
Personal Identification Documents
You should gather personal identification documents such as your driver’s license, social security card, and government-issued ID. These documents are required to verify your identity. Personal identification documents are meant to prevent fraud and abuse.
Financial Documents
Beyond presenting financial documents related to your income, you may also need to provide information about your assets. Some of the documents you may need to provide include bank statements, retirement account statements, and investment account statements.
Property Documentation
If you own property, you will need to provide documentation that can help prove ownership and help the court determine if any of your property is exempt from liquidation under Chapter 7 bankruptcy. These include titles, deeds, and appraisals of real estate or other personal property you own.
Debt Documentation
A Chapter 7 bankruptcy requires that you compile a list of all your creditors and the amounts owed. This includes medical bills, credit cards, personal loans, car loans, mortgages, and other debts. A record of your debts allows for the assessment of your financial obligations, which is vital for determining which debts are dischargeable and how the process will proceed. It ensures creditors are notified of your bankruptcy filing. This is essential for stopping collection efforts.
Monthly Living Expenses
You need to prepare a comprehensive list of your current monthly expenses, including utility bills, grocery receipts, mortgage payments, transportation, and insurance. This is vital for demonstrating your financial hardship. This information helps the court assess whether your budget aligns with the financial hardship you claim to be experiencing.
Contact Our Deerfield Beach Bankruptcy Lawyer
If you are considering filing for Chapter 7 bankruptcy, you should contact an attorney. Our Deerfield Beach bankruptcy lawyer at the Law Office of Adam I. Skolnik, P.A., can help you prepare all the documents you need to file your case. We can help you file your case and guide you through the entire process. Contact us today to schedule a consultation.
