At the start of a bankruptcy case, the filer is asked to fill out certain forms, including disclosures regarding their financial affairs. This disclosure includes the person’s income, expenses, assets, debts, and any property transfers.
The filer will also need to provide supporting documentation. The documents required are similar for Chapter 7 and Chapter 13 cases, with slightly different variations. It is often helpful to check with the bankruptcy trustee to ensure that all required documentation is submitted. Some trustees require more proof than others, and many times, this evidence will also be determined by the facts of the individual’s case.
The following are some of the most requested documents in bankruptcy:
- Tax Returns
The bankruptcy court will require the filer to provide copies of his or her tax returns or tax transcripts for the last two years in a Chapter 7 bankruptcy case and the last four years in a Chapter 13 bankruptcy case. If the filer was not required to file tax returns for certain reasons such as his or her sole income source was nontaxable disability benefits, the filer will need to provide a short letter explaining why.
If the consumer does not have tax returns simply because he or she forgot to file, the bankruptcy trustee will likely require him or her to file taxes and provide copies of the tax returns before continuing with the case, especially for a Chapter 13 bankruptcy.
- Proof of Income
The bankruptcy court will want to see proof of the filer’s income through pay stubs for the last six months and the filer’s last W-2 (officially the “Wage and Tax Statement”). If the person receives other income sources, such as Social Security funds or disability, he or she will want to supply proof of these as well.
Filers who are self-employed may need to do a little more in terms of proof of income. Self-employed bankruptcy filers will need to provide a year-to-date profit and loss (P&L) statement, including statements for the last two full years prior to filing. Bank statements for the business may also be required to verify profit and loss amounts.
- Home Documentation
If the filer owns any real estate, the court will require him or her to provide proof of the property’s fair market value. This value can be done through a full appraisal, a broker’s price opinion, or an online valuation, so long as the value given is fair and reasonable in the current market.
The court will also ask for proof of any liabilities on the home, including mortgage statements. They may also require proof of home insurance.
- Vehicle Documentation
If the filer has a car, he or she will need to provide proof of its value to the court. Most bankruptcy trustees will take online printouts from Kelly Blue Book or the National Automobile Dealers Association. If the car has a loan on it, the filer will also need to supply a loan statement showing how much is owed, as well as how much the monthly payment is.
- Bank Account and Retirement Account Statements
The bankruptcy court will ask for recent bank and retirement account statements for all accounts owned by the filer.
- Proper Identification
The filer will need to bring valid photo identification, such as a driver’s license and proof of his or her social security number.
- Additional Documentation
The bankruptcy trustee may require additional documents for the case, including proof of child support or marital settlement agreement, detailing property distribution, and any other unusual expenses the filer pays.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. To learn more, visit the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
