What information do you need to file for bankruptcy?
With the changes to the bankruptcy code came a completely new list of information needed to file for bankruptcy. It is much easier to file for Chapter 7 bankruptcy than Chapter 13 and that is why so much proof is needed to file. To qualify to file Chapter 7, a person will have to show their annual household income and make sure it is below the state median household income. This is one area where a bankruptcy attorney is of great help.
A person who files for bankruptcy will need to present pay stubs for the last six months or proof of income if self-employed. They will need a copy of the last two years of taxes and up to two years of bank records depending on the situation. That’s the documentation you’ll need to show that you qualify to file for Chapter 7 bankruptcy.
After qualifying to file Chapter 7, the person will need to provide their bankruptcy attorney with a detailed list of all their properties and the valuations. This list will include everything from living room furniture to the shoes in your closet. Although this sounds almost crazy, it could be broken down into groups. For example, a person might list their clothes as valued at $ 500, kitchen appliances at $ 1000, and so on. The person needs to value their property based on the replacement cost formula taking into account age and condition. Most of the time, a bankruptcy attorney will tell the person to give you exchange rates. To be successful in filing for bankruptcy, it is best for the person to enlist the help of a bankruptcy attorney. The bankruptcy attorney will know the ins and outs of what to expect to obtain a successful bankruptcy discharge.
After changes to the bankruptcy code in 2005, it has now taken on a new complexity in which most people must seek legal advice to be successful when filing for bankruptcy. It is still possible for a person to submit a pro se statement, but it is not recommended unless the person is willing to do a lot of research on the subject and fully prepare. If someone has a minimal amount of property to protect, filing a pro se declaration might be an option. For someone who has a large amount of unsecured debt and needs to use bankruptcy exemption laws to the fullest, it is best for that person to hire a bankruptcy attorney. When you first consider the cost of hiring an attorney is the amount of debt that is eliminated in the bankruptcy settlement, the cost is really minimal.
