Filing for Chapter 13 bankruptcy is often a complex process, requiring extensive review of your debts, income, and other financial resources. Submitting a petition for bankruptcy protection isn’t quick and easy, so gathering the information you need beforehand is essential. While you may need more forms and evidence, depending on the unique factors of your case, there are several documents you’ll always need.
The Necessary Documents to File a Chapter 13 Petition
1. Income Verification
To successfully file a petition, you will have to show that you are unable to catch up on your debts without protection while generating enough income to make the monthly bankruptcy payments. In addition to all pay stubs from the previous six months, Social Security statements, and investment account records, small business owners need to send profit and loss reports detailing their income for the previous six months.
2. Tax Returns
You will need to supply three years of tax returns. If you haven’t filed yet or neglected to file a return in the years leading up to the bankruptcy, you must get those filings done before preparing your petition.
3. List of Debts
You cannot choose which debts you will include in your bankruptcy and which do not ALL DEBTS MUST BE LISTED. Any debt left out of your petition will be still be discharged unless it fits a narrow exception., So it’s important to compile a comprehensive list before filing for chapter 13 bankruptcy. Collect your most recent bills, or contact the companies you owe for their mailing address and your account number. Don’t forget to include medical debt, tax or utility bills, and any loans you may have co-signed.
4. Financial Documents
To check your petition, the trustee will need a complete list of your assets, including any IRA, 401(k), or retirement account statements. You won’t lose these assets unless you accumulated a million dollars in them. (of course, if you had a million dollars in your retirement accounts, you probably wouldn’t be reading this.) You will need bank and investment account statements, as well as documentation for any life insurance policies with cash value, and information on any pending lawsuits or inheritances you expect to receive.
5. A Detailed Budget
Since you will be proposing to pay some money to your creditors, it is very important to have a budget detailing the expenses you face very month. Do not forget to include items that don’t get paid every month like some taxes or insurance payments since you still need to account for them. From there, it is simple math to subtract these expenses from your income to decide what is left over for creditors. if you are trying to reinstate your mortgage through a Chapter 13 plan, it is very important to convince a judge that you can afford to do so. Otherwise, your plan of repayment could be denied and you could lose your home.
As one of Connecticut’s most experienced and trusted debt relief attorneys, Eugene S. Melchionne, Attorney at Law, concentrates on helping struggling borrowers reclaim their lives from unmanageable debts. Whether you’re considering a Chapter 7 bankruptcy or a Chapter 13 repayment plan, you can rely on his ability to guide you through one of life’s most challenging situations. Learn more about his background and experience online, follow his Twitter for further advice, or call (203) 757-3437 to schedule a consultation today.