How do I Create Bankruptcy Packets?
Going bankrupt is a huge decision, and a sometimes confusing and frustrating legal process. It requires that you to allow official bodies to assess your finances, and see whether your debt is unmanageable. They will look at why you have so much debt, and why you can't pay it off as you expected too, and they will analyze your expenses to see where you could cut down on spending. Once you have satisfied these requirements, your debts are effectively written off, and you have a new start. Getting all the forms completed on time and correctly is important to helping the process go smoothly, and bankruptcy packets were designed for this purpose. They are very easy to make, and alleviate much of the stress involved.
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Things You'll Need
- Copies of "Statement of Information Required by 11 U.S.C 341," and a "Disclosure Pursuant to 11 U.S.C 527(a)(2)"
- Form-creation software
Instructions
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Create a question-and-answer document. Ask if the person has been bankrupt before and the date this happened. If this is the case, the United States Bankruptcy Court suggests advising the person to seek legal help, as a person with a previous bankruptcy may not be entitled to a discharge. Ask if the person has submitted tax returns up to the current tax year. Request the names and ages of any dependents. Finally, ask about whether credit has been used within the last 90 days. If it has, ask for the creditor and the details of the transaction.
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Provide a document for the person to declare anything she owns. This will include the address of any real estate owned, alongside information about the mortgage, such as how much has been paid and how much is outstanding; the year, model and value of any vehicles owned; the value of any jewelry; and the balance of all bank accounts. If the account is shared, the person must declare who with, and what their relationship with this person is.
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Include a monthly expenditure form. You may create this yourself, or buy a pre-made form. It should include rent or mortgage payments, electricity, water, telephone, cable, trash, home maintenance, food, clothing, laundry, medical expenses, transportation, recreation, charitable contributions, any insurances, taxes, alimony or support for children or spouses not living with them, baby needs, student loan repayments, school lunches, work lunches and space for the person to write in any other monthly expenses. The United States Bankruptcy Court advises checking this closely against your statements to ensure that it is completely correct, as any mistakes could lead to the bankruptcy being denied or revoked.
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Include copies of a debt form. These must be completed for every creditor. Each form should establish whether the debt is secured or unsecured, what it is secured on, who it is owed too, if a collection agency is involved and if so which one, if anyone else is liable for the debt, what the debt was taken out for, the monthly payment and due date, and how many payments behind the person is at present.
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Print and include a Statement of Information Required by 11 U.S.C 341, and a Disclosure Pursuant to 11 U.S.C 527(a)(2). These will be available from your local court offices, or your secretary of state offices
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Finish the packet with a certification document. This simply needs to state: "I have read the entire contents of the attached package, and the information I have provided therein is true and correct to the best of my knowledge, information and belief." Then leave space for the person(s) to sign and date as necessary.
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Enclose the fee. The fee can vary depending on the type of bankruptcy necessary. The court will decide this and advise you. The cheapest bankruptcy costs $274 and the most complex cases cost $1,039 as of October 2010.
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Tips & Warnings
Filing for bankruptcy is a big decision, so it is important to ensure people do not take it lightly.
References
- Photo Credit paperwork image by Pix by Marti from Fotolia.com
