Filing for bankruptcy isn’t always easy. One of the biggest burdens under the “new” bankruptcy law that was forced upon debtors and their attorneysin 2005 was the requirement to produce volumes and volumes of documents. In addition to the formal schedules and statement of affairs, you’ll need to get together a lot of paperwork to file bankruptcy. One nationally known attorney from Utah has said that before the law was changed, he would tell his clients that you paid your attorney to run around the courthouse. Now, under the new law, you pay your attorney, and both the debtor and the attorney get to run around the court house. In our experience, the presentation of the documents only serves to verify the truth of the matter, and that is that the overwhelming debt is much too onerous to deal with, and the need to file a bankruptcy is even more necessary. The frustrating part of the practice of law, in this regard, is the time-consuming task of gathering documents that state what is already obvious. Even so, submitting these “due diligence” papers is a major part of debtor bankruptcy practice today. So, what sort of documents will you need forChapter 7orChapter 13bankruptcy, at your initial consultation with a bankruptcy attorney and beyond? Read on. The most important, mandatory documents to bring to your initial bankruptcy consultation are a list of your outstanding debts and a list of your assets, focusing on major assets, such as houses, cars, boats, trailers, timeshares and the like. We rarely ask for the actual bills from the creditors, as we routinely download acredit report, which captures most of the needed information. Then, a recent pay stub is the next important item, plus a rough budget for your household’s income and expenses. These would be bare-minimum documents for an initial review. If you and your attorney decide to go forward with your case, you likely will be provided with a detailed checklist of all the other myriad documents needed, such as loan payoffs, copies of titles, copies of tax returns, six months ofpay advices, deeds of trust, proof of insurance, and on and on. The United States Courts website has a full list of theOfficial Bankruptcy Formsthat may beneeded for filing bankruptcy, which include your Chapter 13 Plan,means testforms for Chapter 7, financial affairs and income statements, applications to waive filing fees, orders on reaffirmation agreements, orders for relief in involuntary cases, notice to creditors, financial management course certification, and more. Individual debtors will file forms that begin with the number 100, while non-individuals will file forms beginning with the number 200. Thankfully, though, most of these documents can wait to be produced during the retainer and filing process, and need not be brought to the initial consultation. While debtors certainly are able to file for bankruptcy on their own without the help of an attorney, it’s generally not advised. Bankruptcy can be complicated, outside the dozens of forms involved, and just a simple mistake with a document or overlooking an asset can get your case tossed and your debts will not be discharged. If you are thinking of filing for bankruptcy, you are not alone. Lawyers can help you decided whether or not you even need to file a bankruptcy, but if you do, they’ll let you know which chapter would be most appropriate. They can also tell you whether or not you’ll be able to keep your most treasured assets, including your house and car, and advise you about tax consequences and how to address bills during bankruptcy. They’ll also help you fill out all of the necessary forms correctly and make sure you’re not missing anything the bankruptcy court requires. If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation. Ascent Law LLC8833 S. Redwood Road, Suite CWest Jordan, Utah84088 United StatesTelephone: (801) 676-5506 Ascent Law LLC 4.9 stars – based on 67 reviews Source: http://www.ascentlawfirm.com/what-documents-do-i-need-to-bring-when-i-first-meet-with-my-bankruptcy-attorney/Bankruptcy Consultation Documents: What to Bring to Your First Meeting with Your Lawyer
What Documents You’ll Need If You File Chapter 7 or Chapter 13
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FAQs
What Documents Do I Need to Bring When I First Meet with My Bankruptcy Attorney? ›
Plan on bringing at least six months' worth of pay stubs and two years of tax returns. If you are self-employed, you can ask the attorney what they would consider appropriate proof of income.
What should you bring with you to show when you file for bankruptcy? ›- six months of paycheck stubs.
- six months of bank statements.
- tax returns (the last two years)
- current investment and retirement statements.
- current mortgage and car loan statements.
- home and car valuations (printouts from online sources work)
The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.
What does Chapter 13 do? ›A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts.
What does it mean to declare bankruptcies? ›Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws.
How many bank statements do you need for bankruptcies? ›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.
What are the bad parts of filing for bankruptcy? ›Bankruptcy is recorded on your credit reports and remains there for seven years from the filing date for Chapter 13, or 10 years from the filing date for Chapter 7. A bankruptcy on your credit reports has a deep, long-lasting negative impact on your credit scores.
How much cash can you have in Chapter 7? ›If you declare bankruptcy, will you lose literally every dollar that you have in your savings? The answer is no: some cash can be exempted in a Chapter 7 case. For example, typically under Federal exemptions, you can have approximately $20,000.00 cash on hand or in the bank on the day you file bankruptcy.
What assets do you lose in Chapter 7? ›Chapter 7 bankruptcy is a type of bankruptcy filing commonly referred to as liquidation because it involves selling the debtor's assets in bankruptcy. Assets, like real estate, vehicles, and business-related property, are included in a Chapter 7 filing.
What can you not do after filing Chapter 7? ›- Lie under oath about your financial or property assets.
- Keep property that must be used to discharge your debts.
- Miss payments to certain creditors in order to keep your home.
How much cash can you keep when filing Chapter 13? ›
Under Chapter 13, you also have the $550 cash exemption along with a wildcard exemption up to $1,475, allowing you to keep $2,025 in cash under Chapter 13. However, when filing for Chapter 13 bankruptcy, you can claim and exempt 75 percent of the wages you earned in the preceding 30 days.
Will Chapter 13 take all my money? ›In Chapter 13 bankruptcy, you must devote all of your "disposable income" to the repayment of your debts over the life of your Chapter 13 plan. Your disposable income first goes to your secured and priority creditors. Your unsecured creditors share any remaining amount.
What can't you do in Chapter 13? ›Also do not not incur debt, use credit, credit cards, or enter into leases while in Chapter 13 without Bankruptcy Court approval, except in the case of an emergency for the protection and preservation of life, health or property. Contact your attorney if you need to sell property or incur debt.
Do bankruptcies ever get denied? ›Why Can Bankruptcy Be Denied? Bankruptcy is complicated. Many denials, or dismissals, are because the person filing slipped up, their circ*mstances don't meet Chapter 7 rules, or they're unwittingly, or deliberately, trying to defraud the system.
Can you spend money during bankruptcies? ›During bankruptcy, it's important to distinguish between necessary expenses and luxurious purchases. While you are allowed to spend money on essential items such as housing, utilities, food, and transportation, extravagant expenses might be scrutinized by the bankruptcy court.
Why you should avoid bankruptcies? ›Credit Will Be More Expensive and Limited. After declaring bankruptcy, you'll have to work hard to raise your credit score. You will likely face limited access to credit and very high interest rates until you can rebuild your financial reputation.
How many months of bank statements do you need for bankruptcy? ›The trustee will use these statements to get a glimpse into your financial history. Your bankruptcy trustee can ask for up to two years of bank statements. The trustee will look at your statements to verify your monthly payments to make sure they match the expenses you put on your bankruptcy forms.
What doesn't go away when you file for bankruptcy? ›Not all debts can be discharged through bankruptcy, including child support, alimony, certain unpaid taxes, and more. Income tax debt is also very difficult, though not impossible, to get discharged. Most loan debt can be alleviated through bankruptcy.
How fast does bankruptcies work? ›Generally, a Chapter 7 bankruptcy case will take approximately 4 to 6 months from the date when the case is filed until the case is closed. A Chapter 13 case will typically last 36 to 60 months from the date of filing. The sequence of events in a typical Chapter 7 case include the following: Consultation.