4 Pieces of Information You Need to Have Ready
Many debtors turn to bankruptcy when they cannot keep pace with their financial obligations. With a seemingly impossible debt burden to deal with, debtors may use bankruptcy as a way to either clear out their debts altogether or find a way to lower their payments. However, a debtor needs to prepare the proper documents and information before they are able to file for bankruptcy.
If you are struggling to cope with your debts, bankruptcy may offer an effective solution. To learn more, contact the Joliet bankruptcy lawyers of the Law Offices of Stuart B. Handelman by calling 815-722-2201 today.
A bankruptcy filing will need to be accurate and thorough, or else a filer may have his or her claim rejected. In some cases, simple mistakes could lead to allegations of bankruptcy fraud. The following information is important to gather in advance of your filing.
#1: Income and Expenditures
In the case of Chapter 7 bankruptcy, a report of a debtor’s income and expenditures is required for the means test, which compares this income to the state’s average. Additionally, determining income and expenditures can prove crucial for Chapter 13 bankruptcy repayment plans, which require a person to dedicate their disposable income to paying off debts.
#2: Liabilities and Assets
In order to work through the bankruptcy process, the court will need to know how much a debtor owes and to whom. This can help the court determine which debts are linked to collateral and which debts are considered priority obligations.
#3: Contracts and Leases
If a person is still tied to a contract or a lease, they need to provide this information to the court. Keeping track of this information can help the court better understand a debtor’s larger debts, including home loans.
#4: General Statement of Finances
When a debtor files for bankruptcy, they will be expected to prepare a statement of their finances. This statement gives the court a clear understanding of how the debtor’s finances work, how they make basic payments, and how certain debts work in their life. The court can provide a fairer solution through bankruptcy with this statement.
If you can no longer bear your debt obligations, it may be time to consider bankruptcy. To discuss your options as a debtor, contact the Joliet bankruptcy attorneys of the Law Offices of Stuart B. Handelman by calling 815-722-2201 today.