Before filing for bankruptcy, you will need to gather records that explain your financial circumstances, including your income, debts, property and household expenses. While the exact records you need depend on whether you file Chapter 7 or Chapter 13, completing this information early can make the filing process more manageable. Having everything prepared in advance can also help you respond to questions about your finances more accurately.
Here are the main records you should prepare.
Income and tax documents
These records establish your sources of income and provide information needed to complete portions of your bankruptcy paperwork. They may include:
- Recent pay stubs or other proof of employment income
- Federal tax returns or tax transcripts
- Records of benefits, pension payments or other regular income
Federal bankruptcy law generally requires you to provide evidence of payments you received from an employer during the 60 days before filing. You also must provide the trustee with your most recent federal tax return or a transcript of it.
Debt and creditor documents
These records identify your creditors, the amounts you owe and the types of debt involved. You may need:
- Credit card statements
- Medical bills
- Personal and other loan statements
- Collection letters and other creditor notices
- Information showing current balances and account numbers
Leaving a creditor off your paperwork can create complications later, particularly if you expect the case to address that debt. Make sure your list includes obligations that have already gone to collections or are the subject of a lawsuit.
Property and financial account documents
These records help establish the assets and accounts that you need to disclose as part of your case. Depending on your circumstances, gather:
- Bank and other account statements
- Mortgage and vehicle loan information
- Records for your home, vehicle and other valuable property
- Retirement account information
If you overlook an account or property, you could provide an incomplete account of your assets. That omission can create questions during the bankruptcy process and may affect how the trustee handles your case.
Household expense records
These records show what it costs to support your household each month. They may include:
- Housing and utility costs
- Food and transportation expenses
- Medical costs
- Other recurring household expenses
Your current income and expenses appear in the bankruptcy schedules, so recent records can help you account for the costs you regularly incur rather than relying on estimates or outdated figures.
Records of recent financial activity
Some recent transactions require additional information when you file. These may include:
- Significant payments
- Property transfers
- Other transactions involving your finances
The Statement of Financial Affairs asks about certain aspects of your recent financial history. Having records of these transactions can help you provide accurate explanations if the trustee asks about a payment, transfer or other unusual activity.
Make sure nothing important is missing
Before filing, review your records for gaps in the information you will provide. If you cannot find a particular record or are unsure whether a transaction needs to be disclosed, discussing the issue with an attorney before filing can help you address it before it affects your case.