Bankruptcy Guide

Introduction

Bankruptcy is the most common way U.S. citizens appear before the Federal Courts.

Timeline

What You Need to File?

  • Valid Identification (Passport, Drivers License, Firearm License, Identity Card)
  • Social Security Number
  • Credit Report
  • Bankruptcy Training Course Certificate
  • Pleadings for all pending law suits, if applicable
  • Last 3 months of bills or creditor correspondence
  • Last 4 years of tax returns
  • Last 6 months of pay stubs
  • Insurance Policies (auto & life)
  • Deeds to real property, if applicable (Warranty Deed or Deed of Trust only)
  • Property tax statements for last 2 years, if applicable
  • Contracts on auto purchases, if applicable
  • Last 6 months of bank statements
  • Divorce Decree and/or Child Support Orders, if applicable
  • Pleadings for all pending law suits, if applicable
  • Last 3 months of bills or creditor correspondence
  • Credit report
  • Copy of Social Security Card and Driver’s License

What are the Real Property Considerations of the Petition?

What are the Tax Considerations of the Petition?

  • Filing all past due returns.
  • What were the refunds for the past two years?
  • Changing filing status on pass-through entities.
  • Stubbing the return. If the case will be an asset case, and the debtor had significant taxable income in the year that he or she is filing for bankruptcy, the debtor may wish to file a tax return just for the pre-petition period so that the taxable income is a claim against the bankruptcy estate. There is a critical revenue procedure that the attorney must follow to gain this advantage. Failure to stub the return means that the debtor will have this taxable income post-petition, and it will be non-dischargeable.
  • Taking tax loss carryforwards, not leaving carrybacks.

What debts should the debtor pay?

  • Insurance
  • Emergency medical
  • Rent
  • Secured claims on property the debtor wishes to keep
  • Vehicles the Debtor intends to keep
  • Warning! The Attorney may never, ever counsel the client to incur new debt in contemplation of bankruptcy.

 

Who is the Trustee?

What is a 341 Meeting?

 

 

 

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