Making the decision to file bankruptcy is monumental. It can be a daunting process, especially when it comes to all the paperwork involved. You may struggle to understand what documents and information you need to declare bankruptcy.
While dealing with legal and financial papers is not exactly "fun," it is not as difficult as it may seem. Here are some of the core bankruptcy documents you need to gather for your bankruptcy case.
Proof of income
If you are an employee, you must provide recent W-2s and pay stubs. You will also need evidence of any other income from anything such as disability funds, Social Security or rental properties. However, if you are self-employed, you must organize profit and loss statements as well as bank statements to verify the numbers.
You will need to dig through your files for your tax returns from the last several years. Going back five years is ideal.
If you own any vehicles, you must provide proof of value for each of them. This includes any cars, motorcycles, boats and RVs. If you have an auto loan, you may need recent loan payments. Generally, you should also collect your title, registration document and proof of insurance.
Real estate documents
The bankruptcy trustee needs to see proof of the fair market value of any real estate you own. You can get this value from an appraiser. Also, prepare to show mortgage statements that include your current payment amounts and loan balances. You may also need to provide your deed and proof of homeowners' coverage.
You will want to prepare details regarding any pending litigation or previous legal matters with your attorney. This is necessary because previous judgments that show any debts will help you determine which type of bankruptcy is right for you. Current litigation will also impact how much you can afford to pay.