Courts take documentation in all cases very seriously. Any Missouri City bankruptcy lawyer will tell you that no petition will be successful without a painstaking documentation and document production has been done thoroughly. This is understandable as most courts do not want to expose themselves to appeals and accusations of mishandling the case. Below are some of the most important documents that you and your Missouri City bankruptcy lawyer must have prepared before filing a petition.
This is a list of all your creditors and debts owed to each. It also includes their contacts, loan numbers, addresses and descriptions of how and why the debt was incurred. This helps the trustee to communicate with the creditors and ask for their submissions as far as what they are owed is concerned. They are also informed of the day when the petitioner will be questioned under oath in case they feel that the petitioner is not revealing all the details.
Secured Debts’ Additional documents
Secured debts are all the debts that a debtor has attached collateral to. They include car loans, mortgages, heavy machinery etc. For each of the secured debt, your Missouri City bankruptcy lawyer will be expected to produce a statement showing the money paid and money due as well as a DMV registration copy if it is a car or a trust deed if it is any other type of asset.
Last Two Years Income Tax Returns
1099 Form, K-1 Information and W-2 are some of the documents you will be expected to deliver. These documents help the trustee determine two things. Firstly, the trustee will determine the income of the petitioner and will therefore feature his income in his report on the petitioner’s ability to pay up his debts. Secondly, the trustee will know whether the petitioner is current in his tax returns and if not, how much he owes the IRS. In case he is not current, the IRS becomes part of the creditors list.
Bank Statements and Pay slips
Again, these documents are used to verify the petitioner’s ability to pay and whether or not he is qualified for the protection of the bankruptcy laws. The last two pay slips are required and the bank statement should include all the transactions of the petitioner for the last 90 days.
Debtor’s Monthly Expense Schedule
This schedule will list all the debtors living expenses in a month. The Missouri City bankruptcy lawyer ought to have advised his client about the expenses he must include in this list. These expenses include; transport, food, house rent, utility bills, clothes, taxes and medicine. This list will be important in compiling the exempt and nonexempt taxes.
The Income Statement for the last six months
For the petitioners who are self-employed, they are required to present their business’ income statement for the last 6 months of the current fiscal year. This again is used to determine the ability of the petitioner to offset his debts without filing for bankruptcy.
Lawsuits, Judgments, Prenuptials and Family Trusts Copies
Regardless of whether the petitioner was a plaintiff, these copies will help the trustee and the court determine the exempt and nonexempt assets as well as his ability to meet his obligations to creditors without bankruptcy protection.
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