When filing for Chapter 7 or Chapter 13 Bankruptcy, you’ll need to furnish your attorney with several documents, which may vary based on factors such as your assets, income, and individual circumstances. Accuracy is important from the start to steer clear of complications and potential issues with the Bankruptcy Trustee moving forward. Here’s a rundown of some of the documents that could be required to initiate your case:
- Proof of identity: Photo I.D. and Social Security card.
- The US Trustee has published a list of acceptable types of photo identification. These include: U.S. Government ID, Driver’s License, Student ID, Passport or Current Visa (if not US Citizen), Military ID, Resident Alien Card and Identity card issued by a national government authority. I would assume this includes all photo ID cards issued directly by foreign governments.
- Acceptable confirmations for Social Security Numbers include: Medical Insurance Card, Pay Stub, W-2 form, IRS Form 1099, Social Security Administration Statement and ITIN documents (only if not eligible for SSN).
- Tax returns are NOT acceptable proof of an SSN.
- Should the debtor fail to provide an acceptable identification document, Social Security number document, or both to the trustee before the 341 meeting, there’s a significant likelihood that the Chapter 7 trustee will cancel and reschedule the meeting. This could escalate into a serious issue, potentially leading the Trustee to pursue dismissal of your case.
- Creditor information: Include the name, address, account number, amount owed, and any other relevant details for all creditors.
- Typically, your attorney will obtain most of the necessary information from your credit report during your consultation. However, it’s important to note that not all debts may appear on your credit report. As a general rule, debts for which creditors didn’t require your social security number might not be listed. This often applies to smaller debts like magazine subscriptions and certain person-to-person loans. Additionally, based on my experience, medical debt is commonly omitted from credit reports.
- Furthermore, you have the option to access a free credit report at any time by visiting www.annualcreditreport.com. Once you’ve obtained your credit report, consider saving it as a PDF to compare it with your own records of debts. This proactive step can help ensure accuracy and completeness in your bankruptcy filing process.
- Tax returns: For Chapter 7, you’ll need to submit the past two years’ tax returns, while Chapter 13 requires four years’ worth. It’s important to confirm that all outstanding tax returns are filed with the IRS before moving forward with your bankruptcy.
- In cases where the original return is lost, tax return transcripts can serve as substitutes and can be obtained directly from the IRS.
- Failure to provide your tax returns to the trustee before the Creditors Meeting could result in the dismissal of your case.
- Most attorneys will rightfully refrain from filing a bankruptcy petition until the required tax returns have been filed.
- Proof of income: For employees, provide paystubs for the last six months and the last two W-2s. If self-employed, include a profit and loss statement for the last six months supported by business bank statements.
- You’ll also need to provide proof of all other income sources, including Social Security, disability or unemployment benefits, or income generated from real estate investment properties.
- If you’re unemployed when filing for bankruptcy, you can provide the trustee with a detailed affidavit confirming your unemployment status.
- Real estate valuation: If you own property, you’ll need to furnish several documents. These include a recent mortgage statement showing the loan balance, the deed stating your name and the form of title ownership (even if it’s tenancy by the entirety), proof of home insurance, and either a property evaluation, a broker’s statement, or an online valuation.
- Additionally, most trustees will conduct thorough research using relevant real estate databases, such as the recorder of deeds. Therefore, it’s crucial to be entirely accurate in disclosing all your assets to avoid potential issues related to bankruptcy fraud.
- Motor vehicles: Submit copies of the titles and registrations for any vehicles along with their blue-book or nada value. If there are loans on the vehicles, include a recent loan statement indicating the monthly payment amount. The loan amount should also be on your credit report as well.
- Vehicles beyond those used for personal transportation, such as recreational vehicles or classic cars, should be considered.
- Another effective method to determine the value of your vehicle is to visit CarMax and obtain an offer for your specific vehicle. This approach often provides a more accurate valuation, as it considers both mechanical issues and cosmetic imperfections. Additionally, the offer from CarMax is typically close to the amount a trustee could recover if the vehicle were to be sold.
- Bank , investment and retirement accounts: Furnish recent statements for all checking, saving, investment and retirement accounts.
- Certificates of deposit (CDs), or retirement funds like 401(k)s or IRAs, are essential assets to include.
- Business Assets and Valuations: If you’re filing for personal bankruptcy and hold ownership in a business, whether it’s currently operational or closed but retains business assets, you’ll need to furnish documentation that accurately values these assets. Furthermore, if your business remains operational and generates income, this income is also considered an asset which will need to be valued.
- For many sole proprietors, valuation may not present significant challenges. This is often because their income is entirely tied to their own labor and the goodwill associated with their business.
- Miscellaneous Assets: Before filing for bankruptcy, it’s essential to assess the value of other assets with significant worth. These may include jewelry, artwork, collectibles, valuable electronics, firearms, and intellectual property rights such as patents, trademarks, or copyrights. Additionally, valuable antiques or heirlooms passed down through generations can also hold significant value.
- The valuation of these assets is only for bankruptcy planning purposes. Whether these assets can be protected with bankruptcy exemptions will determine the choice of bankruptcy chapter.
- In my experience, asset valuation will often revolve around fire sale or pawn shop prices.
- For high-value assets, engaging an appraiser may be necessary.
- To determine the value of lower-priced items, consider using online platforms like eBay, Amazon, Craigslist, or Etsy. You can also visit local thrift stores or pawn shops to get an idea of what similar items typically sell for in your area.
- Lawsuits and Other Legal Documents: It’s crucial to disclose any ongoing or recent involvement in litigation, whether as a plaintiff or defendant, to your attorney. This information must be disclosed to the court and will aid your attorney in identifying and analyzing potential issues that could arise during the bankruptcy process.
- Examples include: divorce litigation, repossessions, garnishments, lawsuits related to credit card debt, business litigation, probate proceedings, or criminal matters.
- Documents Supporting Expenses: Additionally, you’ll need to provide your attorney with evidence of major expenses, such as alimony or child support payments.
- Moreover, if you intend to claim expenses exceeding the IRS minimum standards on the means test, supporting documentation for these expenses will be necessary.
- Common expenses that may require documentation include child care and school expenses for dependents.
Unless your case is exceptionally complex and involves many assets, many of the documents mentioned may not be necessary for submission to the bankruptcy trustee. Instead, they primarily serve to assist your attorney in accurately preparing your petition. The documents that will typically be presented directly to the trustee include your identification and social security documents, along with your income documents and tax returns. It’s essential to understand the specific requirements of your case and work closely with your attorney to ensure all necessary documentation is provided as needed.
