when filing chapter 7 what information do the attorney needs

Evidence of your income during the six months prior to filing your Bankruptcy Petition is required so that your attorney can determine if you qualify for filing a Chapter 7. Your income must be below your state’s median income, and you must show that your income and expenses do not leave disposable income for you to pay unsecured creditors.

Full Answer

What do I need to know before filing for Chapter 7 bankruptcy?

Here are the primary things needed to get a Chapter 7 case started: six months of paycheck stubs six months of bank statements tax returns (the last two years) current investment and retirement statements current mortgage and car loan statements home and car valuations (printouts from online sources work)

Do creditors have to file proofs of claim in Chapter 7?

 · Evidence of your income during the six months prior to filing your Bankruptcy Petition is required so that your attorney can determine if you qualify for filing a Chapter 7. Your income must be below your state’s median income, and you must show that your income and expenses do not leave disposable income for you to pay unsecured creditors.

Do not sell my personal information in a Chapter 7 bankruptcy?

Although a secured creditor does not need to file a proof of claim in a chapter 7 case to preserve its security interest or lien, there may be other reasons to file a claim. A creditor in a chapter 7 case who has a lien on the debtor's property should consult an attorney for advice. Commencement of a bankruptcy case creates an "estate."

What is Chapter 7 of the Bankruptcy Code?

 · Income will go on your Chapter 7 Statement of Your Current Income, Schedule I, and the Statement of Financial Affairs ; all of which has to be filed with the bankruptcy court. If you make too much, you might have to file for Chapter 13 bankruptcy and complete a repayment plan before getting your discharge.

What does the trustee look for in Chapter 7?

Most trustees will compare the information provided in the bankruptcy petition and schedules (the paperwork you file with the court) to other financial documents you turn over, such as paycheck stubs, tax returns, and bank statements.

What do they look at for Chapter 7?

Background. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.

What assets do they take in Chapter 7?

Everything you own or have an interest in is considered an asset in your Chapter 7 bankruptcy. In other words, all your belongings are “assets” even if they're not really worth much. That doesn't mean that the bankruptcy trustee will sell everything you have, though.

What Cannot be included in a Chapter 7?

Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.

What do you lose when you file Chapter 7?

A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.

What happens to your bank account when you file Chapter 7?

In most Chapter 7 bankruptcy cases, nothing happens to the filer's bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won't affect it.

How much debt can be discharged in a Chapter 7?

There is no ceiling on the amount of debt with which you can file for Chapter 7 bankruptcy. Chapter 7 also is often preferred over Chapter 13 because it wipes out debt and doesn't involve repayment. The rules under Chapter 13 are more stringent, but Chapter 7 is open to any individual with any amount of debt.

What assets are exempt from creditors?

Alberta – Exempt PropertyFood for a 12 month period.Clothing up to $4,000.Household furniture and appliances up to $4,000.One motor vehicle up to $5,000.Equity in your principal residence up to $40,000, reduced to your share if you are a co-owner.Tools of your trade up to $10,000.More items...

What is considered an asset?

Key Takeaways. An asset is something containing economic value and/or future benefit. An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent. Personal assets may include a house, car, investments, artwork, or home goods.

Is credit card debt discharged in Chapter 7?

Chapter 7 Bankruptcy for Credit Card Debt Filing Chapter 7 bankruptcy not only can wipe out credit card debt, it also can sweep all forms of unsecured debt into the garbage, if done properly. Among the bills that can go away are: Medical.

What can they take during bankruptcies?

What assets can I keep in bankruptcy in Alberta?Food required by you and your dependents during the next 12 months.Necessary clothing up to a value of $4,000.Household furnishings and appliances to a value of $4,000.One motor vehicle not exceeding a value of $5,000 (equity)More items...

How do I file Chapter 7 with no money?

Eligible filers are able to file Chapter 7 for free. If your household income is less than 150% of the federal poverty level, you can ask the bankruptcy judge to waive your court fees with a simple application submitted along with your bankruptcy petition.

When filing for Chapter 7 bankruptcy, should your case move forward?

When filing for Chapter 7 bankruptcy, your case should move forward predictably. Here's a summary of what's involved in a typical Chapter 7 bankruptcy.

What documents do you need to file for bankruptcy?

You can expect to forward bank statements, paycheck stubs, profit and loss statements, tax returns and other documents the trustee requires. (Find out what to expect in Gathering Your Documents for Bankruptcy .)

What happens when you file for bankruptcy?

When you filed your bankruptcy forms, you'll complete a form in which you stated how you intend to handle your secured debts. Before your case is closed, you'll need to act on these matters. For instance, if you indicated that you'd return a car, you'll want to be sure to make it available to the lender. (For more information, see What Is a Secured Debt?)

How often do you have to go to court for bankruptcy?

In most cases, you'll need to go to court only once for a short meeting with the trustee (and perhaps a creditor or two, although it's unusual for creditors to appear). The bankruptcy trustee appointed to your case will check your identification, and ask standard questions required of all debtors, as well as specific questions about the information in your forms. (To learn more see, The Meeting of Creditors in Chapter 7 Bankruptcy .)

How to file for bankruptcy if you can't pay?

If you can't pay it all at once, you can ask the court to split it into four payments. If you can't pay it at all, you can apply for a fee waiver by filling out an application that you'll file along with your bankruptcy petition. A judge will review it and, in most cases, issue the fee waiver if it appears that you meet all necessary qualifications. (Your household income must be 150% of the federal poverty guidelines or less, and you can't have sufficient income to pay in installment payments.) (See Bankruptcy Filing Fees and Costs .)

How long does it take to file bankruptcy?

You must file the remaining forms within 14 days.

Do you have to complete a credit counseling course before filing for bankruptcy?

Individuals who file for bankruptcy must complete a course before filing for bankruptcy, or, in unusual cases, shortly after that. (Find out more in The Pre-Bankruptcy Credit Counseling Requirement .)

How long is a Chapter 7 bankruptcy petition?

Filing bankruptcy is a very document intensive process. This shouldn’t be a surprise, as the petition the filer submits to the bankruptcy court can be up to 100 pages long. Since preparing for a Chapter 7 bankruptcy can be stressful, scary, and confusing, it can be helpful to use checklists to keep yourself on track.

How long before filing Chapter 7 bankruptcy do you have to get pay stubs?

Go back at least 60 days before you file your Chapter 7 bankruptcy petition, 6-7 months is preferable. If you weren’t employed, you don’t need pay stubs. But if you had more than one employer, be sure to get pay stubs from each employer.

How long does it take to get a Chapter 7 discharge?

Then, to get your Chapter 7 discharge, you’ll need to take the second course to receive a financial management certificate for filing. You can only take this course after your case has been filed with the court. That certificate needs to be filed within 60 days from the date of the first meeting of creditors.

How long does it take to get credit counseling after filing bankruptcy?

You’ll need two credit counseling courses when you file bankruptcy. Both must be through a provider approved by the U.S. Trustee’s office. Chapter 7 and Chapter 13 bankruptcy laws require you to take a credit counseling course within 180 days (6 months) before filing a bankruptcy petition. You’ll get a credit counseling certificate that expires in 180 days, and it must be filed within 14 days of filing your bankruptcy petition.

What happens if you make too much money in bankruptcy?

If you make too much, you might have to file for Chapter 13 bankruptcy and complete a repayment plan before getting your discharge. Profit and loss statements: If you have a business or farm, produce profit and loss statements from the past year, gross receipts, and proof of necessary business expenses.

How long do you have to file taxes before bankruptcy?

Tax returns: Assuming you were required to file returns, you will need the tax returns you filed in for the two calendar years before your bankruptcy case is filed. If you no longer have access to copies of your tax returns, you can request a tax return transcript from the IRS.

What is the difference between bankruptcy and bankruptcy?

Bankruptcy forms are documents with spaces to be filled in with your information. Think of them as a “skeleton” for the legal process of bankruptcy. Bankruptcy documents are sources of information and used as evidence to help fill in the forms.

How far back do you need to go for a bank statement?

Local customs as well as your circumstances will ultimately control how far back you need to go for banking and investment accounts, but typically you will need 3-12 months in a simple case;

What to do if you don't have a bill?

If you don’t have a bill and no longer receive one, you may need to contact the company yourself to get the mailing address, account number, and balance due on all of your debts.

Do both bankruptcy petitions require the same information?

Both types of bankruptcy petitions require virtually the same information, so even if you don’t know which type you are filing, the basic set of documents you will need to put together is the same.

Do you have to leave out debts?

You will need to provide information on all of your debts, and you should not leave any debts out. Mortgages, car loans, personal loans, credit cards and medical bills need to be set out, as do loans from friends and family, domestic and child support, restitution, fines, association dues, and any other amount you may owe.

How many documents do I need to file Chapter 7?

What documents do I need to file chapter 7? The average Chapter 7 bankruptcy filing can require as many as 30 documents to give a total financial picture of the person filing bankruptcy. Working with an attorney can help make the process of gathering the correct paperwork for bankruptcy together to prepare to file for bankruptcy. ...

Why do we gather documents for Chapter 7?

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 you’re 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:

How long does it take to file Chapter 7?

It’s important to understand that these documents must be provided within 45 days ...

What documents are needed for Chapter 7 bankruptcy?

The documents filed for Chapter 7 can include the following information: Chapter 7 bankruptcy petition. List of assets and liabilities. List of creditors. Your current income and expenses. Pay stubs for 60 days before filing. Monthly net income.

What documents are needed for Chapter 7 bankruptcy?

The documents needed to have a Chapter 7 bankruptcy case prepared and filed are: • Proof of income, which you can show by providing pay stubs. • Income tax returns are also used to show income, and should be provided along with pay stubs.

Does a Chapter 7 bankruptcy last longer than a Chapter 13?

Posted on June 5, 2017. By Chris. In Bankruptcy. A Chapter 7 bankruptcy case does not last as long as a Chapter 13 case, and certainly does not require you to repay any portion of your unsecured debt. But just because a Chapter 7 case is a shorter way to get your debts discharged, that does not mean the preparation is any less involved.