Information Essential for Filing of Bankruptcy

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Information Essential for Filing of Bankruptcy

Once you have concluded that bankruptcy is probably the best way to get rid of your debts, it is time to consult an experienced bankruptcy lawyer. Most lawyers will ask you for a detailed account of your income, assets, and debts. This is because while filing for bankruptcy, you are required to disclose all this information as per Federal Law. For a person struggling with finances, reliving their failures can be quite overwhelming, however, this is something you cannot avoid if you wish to have your debts discharged. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, a bankruptcy attorney will require these documents for preparing your bankruptcy petition:

  • Questionnaire

The questionnaire helps in gathering information about the income, assets, and debts of the prospective bankruptcy filer. You are also required to provide information regarding any assets you had held or transactions done within the past 2-5 years. The attorney can determine an outline of your finances from these questions and assess which would be the correct time to file for bankruptcy.

  • Proof of income

Individuals can file for either Chapter 7 or Chapter 13 bankruptcy depending on their average income. To calculate this, a record of your income for the previous 6 months is required. In case of a salaried person, pay-stubs or cheques of the last six months; for a business owner, the profit and loss statements for the same duration and for a retiree, their social security or retirement income award letter will be needed.

  • Credit report

Since many people might end up forgetting how much they owe to whom, using their credit report is ideal. This gives an idea of the debts you need to include in your bankruptcy. To be on the safer side, you should get your credit report from all three credit reporting bureaus so that you do not forget to include any debt when you file for bankruptcy.

  • Other documents

Apart from these, your lawyer might also need –

  • your tax return information for the past two years
  • your bank statements for a minimum duration of six months
  • titles to assets (vehicle, real estate, )
  • latest mortgage statement, etc.

It is important that you are honest about the information provided when you file for bankruptcy. Since federal law requires complete transparency, any hiding of information could lead to your case being dismissed without a discharge. This will send you in a position worse than when you had started. If you are not sure of anything, ask your bankruptcy lawyer Los Angeles. If you haven’t hired one, you can call 888-297-6023 to schedule an appoint with qualified attorneys to discuss your case.