Why It’s So Important For Debtors to Gather All of Their Financial Records Before Filing

Filing for personal bankruptcy

When fate closes a door in your life, it opens a window, as they say. This is true about filing Chapter 7 bankruptcy. Although it might dampen your credit for a few years and some assets may be sold off, there are several benefits of filing bankruptcy, including the chance to start over.

However, it’s incredibly important to collect all Chapter 7 bankruptcy information necessary to file before filling out the forms so as to protect as many assets and relieve as many debts–if not all of them–as possible. Conversely, filing the wrong Chapter 7 bankruptcy information can have the opposite results. A debtor may not have as many debts forgiven, lose property they could’ve kept, and potentially face heavy fines from the IRS.

So what Chapter 7 bankruptcy information does a debtor need before he or she files bankruptcy?

For starters, it’s important to gather together any and all financial records, including bank statements, credit card statements, loan documents, paystubs, and any other records. These records are incredibly essential not only for an accurate filing, but also to verify that the inputted Chapter 7 bankruptcy information is correct, as trustees may request verification.

When a debtor wishes to file Chapter 7 bankruptcy, he or she can obtain the necessary documents, schedules, petitions, and other forms as a packet from the bankruptcy court clerk’s office. These forms include the voluntary petition for a relief, the statement of financial affairs, the schedules of assets and liabilities, and declarations regarding debtor education. These documents require a debtor to open his or her Chapter 7 bankruptcy information to the court, including lists of property, debts, expenses, income, and creditors, amongst many other things.

Filing these forms with incorrect information can have disastrous results. If you have any questions feel free to ask in the comments. Research more like this: sagarialaw.com

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