In order to prepare your bankruptcy filing, many documents will be needed. These documents provide proof of your current income, expenses, assets, and debts that will all need to be listed in your bankruptcy paperwork. The following is a list of the documents that will be needed and what your bankruptcy attorney and the court will be looking for in each document.
- 6 months of pay stubs – Your bankruptcy attorney will be looking at your gross pay, as well as analyze your tax deductions, itemize your various insurance and retirement deductions. The bankruptcy trustee will also review 2 to 3 months of the most recent pay stubs as well.
- 3 to 6 months of bank statements – The courts use bank statements to look for any potentially missed assets, sources of income, transfers, or payments to family members or preference payments to creditors. The trustee will review anywhere from 6 months to 60 days of bank statements dependent upon the trustee that is assigned.
- 2 Years of tax returns – Tax returns can help your bankruptcy attorney determine if you are consistently under or over withholding taxes. The returns will verify your income as well as catch any early IRA or 401K distributions and capital gains from the sale of property or stock.
- Retirement account statements – Recent statements can show the current value of a retirement plan and any potential retirement loans that have been taken from the retirement account.
- Vehicle and mortgage loan statements – These statements will confirm whether you are current on your secured property or behind. It will also confirm your monthly payment and the total amount due.
- Evidence of property values – Many bankruptcy attorneys will use their own sources to value your property. However, on some occasions, it is necessary to seek out a comparative market analysis or appraisal of the property to ensure that property values are as accurate as possible.
- Statements for creditors – While many creditors will pull through on your credit report, there are some creditors that do not report to credit. For instance, some medical debt and payday loans are not reported to your credit. Your bankruptcy attorney will need those statements to list address, account numbers and total amounts due to creditors to ensure they receive proper notice of your filing.
- Lawsuit or foreclosure paperwork – If you have been sued by a creditor, it is important to submit a copy of this paperwork to your bankruptcy attorney. This will ensure the lawsuit is listed and that notification of the filing is sent to both the creditor and the attorney the creditor hired to file the lawsuit or oversee the foreclosure.
- Whole life policy – If you have a whole life insurance policy that funds can be withdrawn prior to death, a copy of the policy and current value will be needed. Term life policies that do not have value prior to passing are not needed.
- Business documents – If you own a business, profit and loss statements will be necessary for 6 months outlining all income and business expenses. In addition, your bankruptcy attorney will need to know your total gross business income for the calendar year. In addition to the profit and loss statements, a listing of assets and liabilities may be required as well should your business have any property, assets, and inventory.
- Credit Counseling Certificate – The bankruptcy court requires all debtors to take two credit counseling courses. The first must be taken before your case can be filed. These courses are usually taken online, but some accommodations can be made for those who are not able to do so. After your case is filed, one additional course must be taken as well. Overall, the two courses should take no more than three hours in total.
For more questions about the bankruptcy process, contact your Yuba City bankruptcy attorney at (530) 797-4402.