What Is Needed When Filing for Bankruptcy?

Bankruptcy is a snapshot of your financial life at the time you submit your petition. To allow the court to process your case, you must provide all of the information required on the bankruptcy petition. Necessary information includes how much you earn, how much you owe and what property you own. The court also requires a filing fee and proof of counseling.

Credit Counseling Certificate

Bankruptcy law changed in 2005 with the introduction of the Bankruptcy Abuse Prevention and Customer Protection Act. One of the changes this legislation introduced was the mandatory requirement for debtors to take a credit counseling class before filing bankruptcy. If you want to file bankruptcy, you have to take this class within the 180-day period before you file, and you must submit a certificate of completion with your bankruptcy petition.

Inventory of Assets

An important part of the bankruptcy petition is your inventory of assets. On Schedule B of your bankruptcy petition, you must list all of your personal property. The court provides 35 possible categories of property, including inventory, accounts receivable, books, IRAs, household furnishings, furs and jewelry, cash and motor vehicles. If you neglect to list any of your property, the court may charge you with bankruptcy fraud.

List of Creditors

Providing the court with a list of your creditors is important for two reasons. First, it ensures that the court notifies all of your creditors so that they cannot claim to have been unaware of your bankruptcy petition. Second, it enters into the case record the nature and amount of all your debts so that they may be included in your bankruptcy discharge.

Pay Stubs and Tax Returns

Since the court needs to examine your financial status to determine if you are eligible for bankruptcy, you must submit both tax returns and pay stubs when you file bankruptcy. While you can include your pay stubs with your actual petition, you must submit your tax returns for the most recent tax year directly to the bankruptcy trustee in your case.

Filing Fee

Filing Chapter 7 bankruptcy will cost you a $299 filing fee. You can apply for a waiver for this fee if your income is below 150 percent of the poverty line. A Chapter 13 case requires $274 as a filing fee.

References

• Federal Trade Commission: Before You File For Personal Bankruptcy -- Information About Credit Counseling and Debtor Education
• United States Courts: Chapter 7 Bankruptcy
• United States Courts: Bankruptcy Schedule B
• United States Courts: Discharge in Bankruptcy
• Bankruptcy Law Network: Make Sure You List All Creditors in Your Bankruptcy Case
• United States Courts: Bankruptcy Filing Fees

Resources

• United States Courts: JCUS Interim Procedures Regarding Chapter 7 Fee Waiver Provisions