Information organization is a key element in achieving full benefits from the “fresh start” of bankruptcy
Yes, there are only three reasons and all of them guaranteed to benefit you. Besides, when you are able to locate your financial information before you begin your bankruptcy petition, now you’ve saved all the easy work as the last step!
First of all, complete financial information means an assurance of accuracy. Although your attorney will be present with you as you go through the short hearing process, you must supply all the documents to back up your petition. When your case is presented accurately it will maximize the protections that are available for you.
Second, you won’t have surprises or disappointments. You don’t have to endure any “bad things happening to good people.” To knowingly withhold or fail to provide books, documents, records, and papers relating to your property or financial affairs is not allowed under the bankruptcy rules.
Third and last – this organizing project makes you more prepared for future financial projects. Yes, this is another gift that keeps on giving. Once your debts are discharged in bankruptcy, you have a set of basic financials that will help you present books and records in other settings. This is going to save you time and money in any future financial transactions, from accounting for loans, for business, real estate, and school, to budgeting for savings, taxes, vacations. This will be a big benefit for the self-employed, but being organized can help anyone at any time.
Here are the five main categories of information needed for your bankruptcy filing:
- List of debts along with how to contact creditors.
- List of what you own (assets) with information as to its worth. (You will get help to determine an asset’s value) This list will include both real estate and vehicles, as well as intangibles (insurance policies) as well as tangible property (like household items).
- Your income for the past 6 months: this would include pay stubs or, if you are self-employed, profit and loss statements.
- Your monthly expenses (A list of common expenses is readily available at your local bankruptcy website)
- Your tax returns filed for the past at least 3 years (4 years for Chapter 13 cases).
No need to be overwhelmed by what looks at first to be complex and burdensome, too time consuming to begin. An experienced bankruptcy attorney will be able to answer your questions and explain how to complete any forms, as well as describe the process in detail.
Our law office in Sacramento focuses on Chapter 7 or Chapter 13 bankruptcy for debt relief. We invite you to call or email to discuss your individual circumstances. Please contact our Sacramento office at 916-313-9069 or via email at email@example.com.