Before you can even file for Chapter 7 bankruptcy, you will have to complete a course in credit counseling. This course teaches people more about bankruptcy, simply so they are fully aware of what it is and the effects it has, and it is something you must take before you can file for Chapter 7. Once you do this, you will then need to file a lot of different forms, which will include the following types.
Your credit counseling certificate
To file for bankruptcy, you must submit numerous documents and forms, and each one is vital. One of the forms you must submit is the certificate you received from completing a credit counseling course. This will not be the only course you must take when filing for bankruptcy, but it is the only course you need prior to filing. You will take another course after filing. This certificate simply proves that you met this particular requirement and are eligible to file for bankruptcy.
A document that shows all your assets and liabilities
Secondly, you will file a document, or schedule, that shows all the assets you own as well as all the liabilities you have. A liability is a debt, and it is vital to list every debt you have. If you forget to add one, you might be able to add it later on in the process, but it will be a lot simpler to do this from the start. You must list your assets, so the trustee can know exactly what you own. If you file Chapter 7, there is a chance the trustee may take one or more of these assets, as a way of liquidating your estate to repay creditors.
A document showing your income and expenses
One other important form you will have to fill out involves listing all the income you have as well as your monthly expenses. This form helps prove that you are not able to repay your debts, and this will help prove that you need bankruptcy for help with debt-relief. You will be required to list all sources of income and every monthly expense you have, including groceries, food, and entertainment.
There will be numerous forms in addition to these as well, and your lawyer will help you complete all of them. If you would like more information about bankruptcy, you should contact a law firm, like Price James S & Associates, that offers bankruptcy services.Share