- January 15, 2024
- Thomas Adam
- Bankruptcy
Bankruptcy is a way that individuals can resolve debt and get on the path to financial improvement. Once you have made the decision to file bankruptcy, you must follow the process to make sure that you provide accurate information. There are two main types of bankruptcy for individuals including Chapter 7 and Chapter 13. Chapter 7 will provide repayment of debts through liquidation while Chapter 13 allows restructure of debts. For both types, you will need to provide information about your income and all of your outstanding debts.
Disclosing Financial Information
Bankruptcy is all about resolving your debts, so it is essential to disclose all of your financial information. If you fail to completely disclose your finances, you could risk being approved for bankruptcy. The rule to follow when you file bankruptcy is that you must disclose everything. You may want to make a list of all your money, property, and assets, along with an estimate of their value. Make sure that you include everything. Some items you need to remember are tax refunds, retirement and pension accounts, and stocks. You must also include any money that is coming to you in the future.
Respond to the Questions
As one of the first steps in the bankruptcy process, you will need to fill out a questionnaire. The questionnaire is something that you must take seriously. You will need to review each and every question and respond and provide data as requested. Gather all the documentation necessary to substantiate the financial information. It is helpful to be as precise as possible to ensure that the information is as accurate as possible.
Don’t Hide Anything
One important thing to remember when you file bankruptcy is that you cannot hide anything. If you are considering filing bankruptcy you should take care to plan accordingly. Don’t transfer assets, money, or property to someone else in the weeks and months leading up to your filing or it may look like you are doing so to hide your assets. Keep in mind that forgetting to include something could be perceived as an attempt to be deceptive. It’s always best to disclose more information than risk not disclosing enough.
What Must I Disclose?
When you file bankruptcy, you will need to disclose all your assets. This should include all items you own, even if the court will not require you to sell all of them. For instance, you should list your furniture and clothing along with all your other property. If you are not sure whether something is an asset, you should list it. Some assets may not be in your current possession, although they are to be listed. For instance, if you are to receive a settlement in a lawsuit, you will need to disclose it, even if you haven’t yet gotten the payment.
It is essential that you properly disclose your assets and debts when you file bankruptcy. A knowledgeable bankruptcy attorney will answer your questions and assist you through the process. Call us today at Adam Law Group at (904) 351-0743 for an initial phone consultation.