One of the most intimidating things about bankruptcy is not knowing exactly what to expect. Feeling prepared for your bankruptcy journey and understanding your responsibilities in advance can put you at ease and make the process much easier. Preparation can also make things go smoothly and help you focus on the benefits of filing.
Bankruptcy is one of the best tools you have if you are facing financial turmoil. It enables you to get control of your situation and eliminate the feeling of helplessness you’ve been experiencing on an ongoing basis. Bankruptcy can ultimately help you create a sense of financial freedom, but you’ll likely need some help getting started. Where should you begin?
Find an Attorney Who Puts You at Ease
One of the most important things you can do as you move forward with your plans for bankruptcy is to speak to an attorney. He or she will explain the process and help you determine if you are eligible to file, and for which type of bankruptcy you should file.
After you’ve made your commitment to file, you’ll need to provide a variety of financial documents to the bankruptcy court. Your attorney will assist you in filling out a bankruptcy petition, which is the document alerting the court to your desire to file. You’ll also need to submit:
Identification.
First and foremost, the bankruptcy court will want to know you are who you claim to be. You’ll need to submit basic identification, such as a drivers’ license or identification card, as well as your social security number and proof of marriage or divorce.
Documents Related to Your Taxes
You’ll be required to include at least two years’ worth of tax returns when you file for bankruptcy, so you might as well get your tax information organized in advance. Keep in mind unpaid taxes cannot be discharged in a bankruptcy and you might need to pay anything past due before proceeding with your bankruptcy.
Information about Your Assets
In order for your bankruptcy to be granted, you’ll need to provide information about any property you own, including your home, vehicles, and other assets of significant value. Your bankruptcy attorney will help you determine what must be reported and how to provide documentation to the court about ownership and value.
You’ll also be asked to submit information about your bank accounts, so the court can get a clear understanding of your net worth, which it uses to determine your eligibility for bankruptcy. Omitting information in order to protect your assets is considered fraud and can result in not only the rejection of your bankruptcy, but also put you at risk for serious legal ramifications.
Requests for Exemptions
Bankruptcy allows you to ask for exceptions when you file, but your request must be submitted formally with the right documentation. These exceptions are called exemptions. They are available at the federal and state level and vary from place to place. Your bankruptcy attorney can help you determine possible exemptions in your case and assist you in making your request.
For more information about federal bankruptcy exemptions, see this list.
Are you considering bankruptcy? Does the idea of preparing to take on a bankruptcy filing cause stress or confusion? We can help. Contact R. Flay Cabiness, II, P.C. with offices in Brunswick, Hazlehurst and Jesup GA
