Chapter 7 Bankruptcy was enacted to allow persons who are hopelessly burdened by debt to have an opportunity for a new beginning by wiping out unsecured debts (debts that aren’t tied to any specific item of property, most commonly credit cards). Chapter 7 is designed for persons who cannot afford to pay a significant portion of their debt back to lenders. Chapter 7 is available to individuals, couples and businesses. The process is often referred to as “liquidation.” In theory, you are surrendering your assets to the court in exchange for a discharge (elimination) from all of your debts. However, individuals and couples are allowed to keep certain “exempt” property that varies by category and value.
In order to qualify for a Chapter 7 Bankruptcy, certain documentation and information must be provided to the attorneys at Second Start (and most other professional bankruptcy attorneys) before the filing of your case commences.
What You Need
• Copies of your state and federal tax returns for the past four years.
• Copies of the last six months of pay stubs / proof of all income for both filing and non-filing spouse.
• Account statements for the past six months preceding the date of the bankruptcy petition for all depository and investment accounts.
• If you own real estate, a copy of the recorded mortgage(s), recorded deed, and mortgage statement(s) showing the balance of mortgage(s).
• Copy of real estate tax statements showing tax assessed fair market value (FMV) or state equalized value (SEV).
• Copies of all vehicle titles.
• If anybody has filed a lawsuit against you, copies of all court documents related tot that lawsuit.
• If you are currently going through a divorce, or are recently divorced, a copy of all court documents related to the divorce proceeding.
• Copy of life insurance policies with cash surrender value.
• Copies of most recent statements from any retirement plans, IRA, pension plan, ERISA, 401(k), 403(b), annuity, etc.
• Copy of any papers concerning the sale of land or other major items during the last six years.