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What Do You Need To File Bankruptcy

Chapter 7 Bankruptcy Documents Needed After Filing

What Paperwork Do You Need to File Bankruptcy?

The court will want verification that the information provided in your petition is accurate and that you attended the required post-filing educational course. Here’s a list of what you’ll need:

  • 60 days of paycheck stubs or other proof of income received from an employer
  • your most recently filed tax return
  • 60 days of bank statements
  • Trade
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    What Happens After I Go Bankrupt

    After you go bankrupt, an Official Receiver will be appointed within two weeks of receiving your bankruptcy order.

    They will assess your:

    In order to decide how they can be used to meet your debts.

    You might also be asked to attend an interview with the official receiver.

    Your creditors have to make a formal claim to the trustee for the money they are owed.

    You cant make direct payments to them and they cant ask you for payments.

    After a period of time , most of your outstanding debts are written off and you can make a fresh start.

    Until you are discharged from bankruptcy you will remain under bankruptcy restrictions.

    For example, you wont be able to apply for credit of £500 or more without telling the lender about the bankruptcy.

    You can check your discharge date online using the Individual Insolvency Register on the GOV.UK website

    Any credit you do get is likely to be expensive both now and in the future.

    Bankruptcy affects your credit rating and credit reference agencies will keep your details on file for a minimum of six years.

    What Documents Do You Need To File For Bankruptcy

    The documents you’ll need are the same whether you are filing a Chapter 7 bankruptcy or Chapter 13 matter, with slight variations. However, for exact documentation requirements, be sure to check the guidelines provided by your district and your specific bankruptcy trustee. Not only do some trustees require more proof than others, but the particular evidence you’ll have to produce will also be determined by the facts of your case.

    Below are the most commonly required documents in bankruptcy.

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    What Is An Automatic Stay

    After you file for bankruptcy, you have the protection of an immediate, but temporary, automatic stay. The automatic stay can, for example, immediately stop a foreclosure, an eviction, car repossession, or wage garnishment. It can also stop debt collection, harassment, and disconnection of utilities.

    The automatic stay may provide a powerful reason for filing for bankruptcy. In most of the situations listed above, the automatic stay can buy you a few days or weeks in which to figure out your next move. If your primary motivation in filing bankruptcy is to gain the benefits of the automatic stay, you donât need to file all of your papers at once. You just need to file the three-page petition, a signature declaration, and a listing of your creditors. In addition, within 180 days prior to filing, you will have to visit an approved credit counseling agency for advice and budget analysis. You will have to file a certification of such counseling when you file your petition. You have 15 days in which to file the rest of your papers. If you donât, your case will be dismissed.

    What Are The Different Bankruptcy Chapters A Person Can File

    What Do You Need to Know About the Bankruptcy Filing ...

    Different Types of Bankruptcy Chapter 7 bankruptcy wipes out unsecured debts. Chapter 13 bankruptcy addresses most secured and unsecured debts if you repay them partially or in full. Chapter 11 bankruptcies temporarily protect businesses and high net-worth individuals while they restructure their finances.

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    How Chapter 7 Works

    A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. In addition to the petition, the debtor must also file with the court: schedules of assets and liabilities a schedule of current income and expenditures a statement of financial affairs and a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007. Debtors must also provide the assigned case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case . 11 U.S.C. § 521. Individual debtors with primarily consumer debts have additional document filing requirements. They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling evidence of payment from employers, if any, received 60 days before filing a statement of monthly net income and any anticipated increase in income or expenses after filing and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302. Even if filing jointly, a husband and wife are subject to all the document filing requirements of individual debtors.

  • A list of all creditors and the amount and nature of their claims
  • How To File Bankruptcy

    Filing bankruptcy in Canada is available for any insolvent individual who needs a fresh start and an end to their overwhelming debt problems.

    Bankruptcy is a formal process conducted by a Licensed Insolvency Trustee under the BIA .

    Need Help Reviewing Your Financial Situation?Contact a Licensed Trustee for a Free Debt Relief Evaluation

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    If I File Bankruptcy How Will It Affect My Future Credit And My Job

    Different people have different experiences obtaining credit after they file for bankruptcy. As a general rule, most people find it more difficult to obtain long-term credit, such as a home mortgage, shortly after a bankruptcy has been filed. For other types of credit, however, experiences vary depending on other factors. The Bankruptcy Code prohibits your employer from discharging you or discriminating against you solely because you have filed a bankruptcy case. A bankruptcy can remain on your credit report for up to 10 years, but many people are able to raise their credit score to a relatively good level within a few years after bankruptcy.

    What Happens To Your Pension

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    Most pension schemes arent included in your bankruptcy and they cant be claimed by the trustee.

    The pension scheme must be a UK state pension scheme or a scheme approved or registered by HM Revenue & Customs. Approved or registered pension schemes are usually:

    • occupational pension schemes approved for tax purposes
    • personal pensions approved for tax purposes
    • stakeholder pensions
    • retirement annuity contracts

    If your pension scheme is not an approved or registered scheme you may be able to exclude it from your bankruptcy by:

    • applying to the court for an exclusion order, or
    • making a qualifying agreement

    If your pension is part of the bankruptcy, it can be used to make payments to your creditors.

    Pension Payments

    Payments made to you from your pension scheme, including any lump sums, before the end of your bankruptcy can be used as part of an Income Payments Agreement or Income Payments Order . This will involve you paying some of your debt with your income.

    If you are able to take money from your pension following changes to the law in April 2015, but have chosen not to do so, the trustee may look at the value of your available pension fund. If this would give you access to enough money to make a different arrangement to pay your creditors, the trustee can ask the court to cancel the bankruptcy.

    Death benefits

    Bankruptcies before May 2000

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    Attend Your 341 Meeting

    Your 341 meeting, or meeting of creditors, will take place about a month after your bankruptcy case is filed. Youâll find the date, time, and location of your 341 meeting on the notice youâll get from the court a few days after filing bankruptcy. Due to the COVID-19 pandemic, all 341 meetings are held either by video conference or via telephone until at least October.

    The main purpose of the 341 meeting is for the case trustee to verify your identity and ask you certain standard questions and most last only about 5 minutes. Your creditors are allowed to attend and ask you questions about your financial situation, but they almost never do.

    ââ You must bring your government-issued ID and social security card to the meeting. If you donât bring an approved form of both, the trustee canât verify your identity and the meeting cannot go forward. You should also bring a copy of your bankruptcy forms to the meeting, along with your last 60 days of pay stubs, your recent bank statements, and any other documents that your trustee has asked for. ââ

    Who Qualifies For Bankruptcy

    The answer is very simple. To be eligible to file for bankruptcy you must:

    • owe at least $1,000 and
    • have debts greater than the sale value of your assets and
    • are unable to pay your debts when they are due.

    Lets look at each of these a little closer.

    Do you owe your creditors more than $1,000? This is simple math. Add up what you owe and if it exceeds $1,000 then you qualify for bankruptcy based on this requirement.

    Are you unable to pay your debts as they come do? Can you make your monthly payments? Have you been making them? Are you only making the minimum payments on your debts and cannot afford to pay more. This requirement is also pretty simple to determine and will tell you whether or not you are eligible for bankruptcy.

    The last requirement may be very simple, or quite complicated, depending on what you own and whether or not you are still making payments for them. For example, if you own nothing, then it is easy to determine that if you sold the things you own they would not generate enough money to pay off your debts. If you own a home with lots of equity then the question isnt as simple. If you have savings, or multiple cars, vacation property, even RRSPs, they all have to be considered and their value determined and compared to your total debts.

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    Bankruptcy Basics: When Should You File For Bankruptcy

    Sometimes, there’s no other option than to file for bankruptcy. But before you do, make sure to assess your situation accurately.

    Bankruptcy is a scary proposition. The word “bankruptcy” itself sounds so ominous. The media bombards us with nightmare tales of seemingly solid business giants going from bedrock to bankrupt. Gossip columns never tire of dishing on the latest celebrity inches from bankruptcy. You might even fear that you’re a few steps from going under. But, just how can you tell when it’s time to throw in the towel and declare bankruptcy?

    When Should I Declare Bankruptcy

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    When asking yourself Should I file for bankruptcy? think hard about whether you could realistically pay off your debts in less than five years. If the answer is no, it might be time to declare bankruptcy.

    The thinking behind this is that the bankruptcy code was set up to give people a second chance, not to punish them forever. If some combination of bad luck and bad choices has devastated you financially, and you dont see that changing in the next five years, bankruptcy is your way out.

    Even if you dont qualify for bankruptcy, there is still hope for debt relief. Possible alternatives include a debt management program, a debt consolidation loan or debt settlement. Each one of those choices typically require 3-5 years to reach a resolution, and none of them guarantees all your debts will be settled when you finish.

    Remember that bankruptcy carries significant long-term penalties. It is stuck on your credit report for 7-10 years, which can make getting loans in the future very difficult.

    The flip side of that is there is a great mental and emotional lift when all your debts are eliminated, and youre given a fresh start.

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    Chapter 7 Document Checklist

    During a free initial strategy session, we may be able to help you understand your options for filing bankruptcy. There are a few differences between the documents needed for a Chapter 7 and the paperwork for a Chapter 13 bankruptcy filing.

    Gathering documents together can also help you better understand how Chapter 7 may benefit your situation and help you make a plan for managing your finances after youre debt-free. We ask our clients to help gather the following documents to help us prepare their Chapter 7 filing, although other documents may also be needed:

    • Two pay stubs
    • Tax returns for previous two years
    • Every bill or letter youve received from collections
    • Notices of any lawsuits or pleadings youve been involved in
    • Real estate deeds, including those you have partial interest in, and/or mortgage letters
    • Titles for any cars, trucks, motorcycles, trailers, boats, motor homes and/or payment letters
    • Life insurance policies
    • Appraisals of your real estate, jewelry, and other assets if you have them

    These documents are a good starting place when it comes to preparing to file Chapter 7 and can help you understand if you qualify for a Chapter 7 through the means test.

    How To Decide Which Type Of Bankruptcy Is Right For You

    To decide if Chapter 7 or Chapter 13 is right for you, first consider if you can pass the Chapter 7 means test. If you cant, youll have no choice but to file Chapter 13.

    If you could be eligible for Chapter 7 but dont want to give up your property, youll have to determine if you have the funds available to make payments under a Chapter 13 repayment plan.

    If youre interested in lien stripping or a cramdown to help you keep property secured without paying off the loan in full, it may also be worth trying to file Chapter 13, as long as you can afford the payments.

    Before you file either type of bankruptcy, be sure to check if your debts are eligible for discharge and explore other options for how to pay off debt, such as debt settlement, which could be less damaging to your credit. By considering the pros and cons of each option and determining what each could mean to your financial situation, youll be in a good position to make an informed decision on how to proceed.

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    Make Sure Bankruptcy Is The Right Option For You

    Bankruptcy can offer you a fresh start if you can’t see any other way out of your debt problems. However, going bankrupt may have a serious impact on your day-to-day life, so it isn’t for everyone. Make sure you’ve done your research, taken advice and are sure it’s the best option for you.

    Get Free Advice About Bankruptcy

    How much debt do you need to have before you qualify to file bankruptcy in Utah?

    Its always best to talk things through with an experienced debt adviser before you decide to apply for bankruptcy.

    This is because the debt solution is best for you depends on your personal circumstances and might not be this one.

    Debt advisers can help you make the right decisions so most of your money will go to paying off your debts, which means you might be debt free sooner than you thought.

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    You Just Want To Stop Collection Agents From Calling You

    There a simpler way to do this. Its called the Fair Debt Collection Practices Act . The FDCPA requires that collectors stop calling you if you ask them to. Theyre also not permitted to call people who know you or contact you at work if you ask them to stop.

    Simply send the company a certified letter requesting this. After that, no agency employee is permitted to contact you except to let you know theyre going to sue you or are stopping collection efforts. Suing collectors who violate the FDCPA is a popular and lucrative practice.

    Recording your calls and saving your voicemails is an effective way to prove collectors are continuing to call you even after you asked them to stop. The FDCPA does not apply to your original lender, however, since they have a business relationship with you and are permitted contact. Usually, the original lender is not nearly as annoying as a collections agency, though.

    What Happens To Your Assets After Discharge

    Assets that are part of the bankruptcy stay under the trustees control when your bankruptcy ends. It can take time for all assets to be dealt with.

    You must keep making any payments agreed under an IPA or IPO.

    Your family home

    If your family home has not been dealt with 3 years after the bankruptcy order, the interest may be given back to you.

    If the interest in your family home is returned to you, the Land Registry will be told that the property is no longer part of your bankruptcy estate. The trustee will send notice to the Land Registry and the restrictions will be removed.

    Your business

    The restrictions on your business end when bankruptcy ends, unless the official receiver feels youve been dishonest. They can then apply to extend the restrictions

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