What Financial Information Is Needed To File Bankruptcy?

Filing for bankruptcy is a significant step that requires thorough preparation and organization of your financial information. Gathering comprehensive financial documentation is crucial for a successful bankruptcy filing, whether you’re considering Chapter 7 or Chapter 13 bankruptcy. Here’s a detailed list of the financial information and documents you’ll need:

1. Proof of Income

• Recent Pay Stubs: Provide pay stubs or other proof of income for at least the last six months. This helps determine your average monthly income, which is necessary for the means test in Chapter 7 and for calculating your disposable income in Chapter 13.
• Tax Returns: The last two years of tax returns are typically required to verify your income and tax obligations.
• Other Income Sources: Documentation of any other sources of income, such as business income, rental income, interest and dividends, social security benefits, child support, or alimony.

2. List of Debts

• Credit Reports: Obtain credit reports from all three major credit reporting agencies to ensure you’re including all creditors in your bankruptcy filing.
• Loan Documents: Mortgage statements, car loan statements, and any other loan documents.
• Unsecured Debts: Credit card statements, medical bills, personal loans, and any other unsecured debts.
• Collection Notices: Any notices or correspondence from collection agencies.

3. Asset Documentation

• Real Estate: Deeds, mortgage statements, and recent tax assessments for any real estate you own.
• Vehicles: Titles and loan statements for all vehicles, including cars, boats, motorcycles, etc.
• Personal Property: An inventory of significant personal property items, such as jewelry, artwork, electronics, and furniture, along with estimates of their value.
• Financial Accounts: Statements for all bank accounts, investment accounts, retirement accounts, and any other financial assets.

4. Living Expenses

• Monthly Expenses: A detailed list of your monthly living expenses, including rent or mortgage, utilities, food, transportation, insurance, medical expenses, child care, and any other regular expenses.

5. Legal Documents

• Divorce Decrees: If applicable, include divorce decrees and any orders for child support or alimony.
• Lawsuits: Documentation related to any ongoing or past lawsuits in which you are involved.
• Loan Modifications: Any documents related to loan modifications, forbearance agreements, or other debt relief efforts.

6. Identification

• Photo ID: A government-issued photo ID, such as a driver’s license or passport.
• Social Security Card: Or another document that verifies your Social Security number.

Preparing for Bankruptcy

Gathering this information can be time-consuming, but it’s a critical step in the bankruptcy process. It not only helps your bankruptcy attorney prepare your petition accurately but also ensures that you’re complying with the bankruptcy court’s requirements for full disclosure of your financial situation. Missing or incomplete information can lead to delays in your case or, worse, allegations of bankruptcy fraud.

Preparing to file for bankruptcy involves a detailed accounting of your financial life. By compiling comprehensive documentation of your income, debts, assets, and expenses, you can provide your bankruptcy attorney with the information needed to navigate your case successfully. This preparation is essential for making informed decisions about your bankruptcy filing and for laying the groundwork for a fresh financial start.