Preparing for bankruptcy

| Jun 30, 2021 | Bankruptcy

Preparing to go through bankruptcy can be fraught with challenges. And while you may experience multiple emotions about the process, it is essential to begin to get your financial and legal documents ready for your attorney. The following is a summary of what you may need to have on hand to start your bankruptcy filing in Missouri.

Types of bankruptcy

Bankruptcy law is complex, and there are two types of bankruptcy that individuals file. You can select between Chapter 13 or Chapter 7 bankruptcy. Chapter 7 bankruptcy is the most utilized as it can allow you to retain some of your assets. And many of your nonsecure debt, such as credit cards, are discharged. Chapter 13 bankruptcy, on the other hand, is a bit different. Under this form of bankruptcy, you attempt to restructure your debt by having a plan to pay off creditors, typically within five years.

Documents to gather

No matter which type of bankruptcy you choose, it would be best to gather:

  • Tax returns for at least the last three years
  • Pay stubs
  • Bank statements
  • Statements from creditors
  • Bills paid within the past year
  • Appraisal of property
  • Car titles
  • Insurance documents
  • Divorce decree (if applicable)
  • Files from previous attorneys
  • Any lawsuits filed against you

Getting help with the process

As you can see, the list of documentation you may need to file for bankruptcy is extensive. You also may need to consult a bankruptcy law attorney to receive additional support for your specific financial needs. Finding a lawyer that has extensive experience and makes an effort to get to know his or her clients and their legal struggles well can help you get the best outcome for your case.

Preparing for bankruptcy is no small feat. However, with the list of information you have above, you can start the process feeling much more prepared.

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