Filing for bankruptcy is a process. It can require a lot of paperwork, as well as putting your finances under the microscope. When you hire a bankruptcy lawyer, they will review your financial accounts, assets, and debts to look at your whole financial picture, and help you determine which type of bankruptcy is right for you.
Understanding your incoming money and your monthly bills can give your bankruptcy attorney a full look at what money you have available to pay toward your debts. It will also help your attorney figure out if you are better off filing for Chapter 7 or Chapter 13 bankruptcy.
Your bankruptcy attorney may ask you to review your bank account statements to get the full picture of your finances. This will help them determine how much disposable income you have to put toward any of your debt to creditors. They might also look for any flags that might stand out to the court or the trustee. It’s essential for your attorney to know all of the deposits and withdrawals from your accounts to be able to tell the real story of your finances to the court, if needed.
You will likely need to provide copies of your recent tax returns. If you are filing for Chapter 7 bankruptcy, you will need copies of your last two tax returns, and for Chapter 13 you will need your past four returns. This will help prove your income. If you are missing any returns, you will need to work with your attorney to determine how to explain the missing documents.
Proof of Income
Your bankruptcy attorney needs to know how much money you are earning regularly. You will need to provide your income statements – including your W-2s – to show much monthly income is coming in. This will help determine if you pass the means test for Chapter 7 bankruptcy, or how much disposable income you have if filing for Chapter 13 bankruptcy.
If you own property, you should provide your bankruptcy lawyer with an appraisal of how much your home is worth. You should also bring any mortgage statements to your attorney to show how much you owe on your property and if you are behind on any payments. This will also show how much equity you have in your house.
Your bankruptcy lawyer may need to review your vehicle registrations if you own a car, and look at your statements. This will help them determine how much you owe on the vehicle, how much it’s worth, and if you are behind on any payments. It will also be helpful to understand how much your monthly payment is when looking at your monthly expenses.
If you have any investments, it’s important to present them to your attorney. They can determine if they are protected during bankruptcy, and if there are any risks you need to be aware of.
Your retirement accounts should be exempt during bankruptcy proceedings. However, your attorney might want to see how much you have available in your accounts when helping you try to get the best outcome for your financial future.
Contact a Bankruptcy Lawyer
Do you need an Oklahoma City bankruptcy lawyer to help you through your bankruptcy proceedings? Part of this can require assessing your financial accounts and your debts. This is essential to ensure you are filing for the right form of bankruptcy, and that you are correctly marking items exempt. It’s crucial to hire an experienced attorney to help you determine what your financial outlook is and answer all of your questions so you know what to expect. Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.