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What information do you need to file for Chapter 7 bankruptcy?

On Behalf of | Jan 25, 2021 | Firm News

Filing Chapter 7 bankruptcy is more than just the procedural process with certain paperwork required. You are going to have to prove that you actually qualify for Chapter 7 bankruptcy. There are laws that limit the availability of Chapter 7 to those with an adjusted income at or below the state median.

Rather than just filing paperwork, you will need to provide evidence to the courts to qualify, as well as other documentation to get a discharge. What documentation will you need in order to qualify for and proceed with a Chapter 7 bankruptcy filing?

You need documentation about your income and household expenses

The means test involves adjusting your income for certain allowable expenses to determine whether or not you are eligible for Chapter 7 protections. Obviously, you will need to present documentation of your household income and information about your various assets.

Bank statements, mortgage statements and an inventory of your personal property are all an important part of this process. You will also need to provide information about household expenses, such as your mortgage or rent and your health care costs to adjust your income if you are right on the cusp of qualifying.

 You will need proof of compliance with credit education requirements

One of the many requirements for filing Chapter 7 bankruptcy is the completion of an accredited individual credit counseling course. You will need evidence of your successful completion of those courses to file your paperwork requesting bankruptcy.

You will need an authoritative list of debts

From a past due balance with your credit card company to tens of thousands of dollars in medical debt, you could have multiple forms of debt that add up to thousands of dollars.

Your credit report alone may not give you accurate information for every account, and accounts you fail to include will not be eligible for discharge. You will want to go back over your personal financial records to find medical bills, collection notices and other important financial paperwork that reflects what you owe and to whom.

Getting all of these resources together before you sit down with an attorney to talk about bankruptcy can make it easier to determine if you qualify and to get the process moving.