What information is required for a Chapter 7 bankruptcy?

On behalf of Furr & Cohen, P.A. posted in chapter 7 on Thursday, December 24, 2015.

A Chapter 7 bankruptcy requires that you file a petition through the bankruptcy court. The court will consider information about your finances and make a determination about whether or not you qualify for a Chapter 7 bankruptcy. In some situations, the court might decide that you don’t meet the requirements; in such cases, individuals can usually file for a Chapter 13 bankruptcy instead.

As the debtor in a Chapter 7 filing, you have a responsibility to provide information regarding your financial situation. First, you must provide a list of all your creditors. The list must include the nature of a creditors claim against you, including the type of account and related collateral, as well as the amount you owe. Leaving a creditor off the list could result in that account not being included in the relief; it might also hurt your overall bankruptcy.

Second, you have to provide detailed information about your income. This includes the source of your income, how often you receive income and the amount you receive. Misrepresenting your income during bankruptcy proceedings could be considered fraud.

Third, bankruptcy courts usually require a list of all your property. In a Chapter 7 bankruptcy, you might be required to liquidate certain types of property to make payments to creditors. Finally, you’ll have to provide a list of your expenses per month, including how much you pay for shelter, food, utilities, transportation and other requirements for living and working.

Pulling together all this information and ensuring you haven’t missed required information can be difficult. Working with a bankruptcy lawyer helps you create a bankruptcy petition that is complete and accurate, reducing some of the time it takes to work through the bankruptcy process.

Source: United States Courts, “Chapter 7 – Bankruptcy Basics,” accessed Dec. 24, 2015