Things To Have

Everyone has heard that the new bankruptcy law makes it "harder" for people to file bankruptcy. According to the people behind the law, the purpose of the changes is to "catch" people with higher incomes who shouldn't be filing Chapter 7 and to steer them into a Chapter 13 repayment plan. The biggest changes are how information is reported in the bankruptcy documents, especially about household income.

The problem with the new law is that it is harder for all the other people too. Everyone has to report the information.

If you are considering filing for bankruptcy, there are things that you should make sure you to save and have available, just in case. Even if you aren't filing, these As an attorney, I am finding that if people keep good records, the process is much easier and we can proceed without much difficulty.

Many people shred or throw away information, not knowing that they may need it later. If you get your information online, did you know you may need to print it out or you won't be able to access it? Companies are providing more information online, but not all the information is available later if you need it. These may apply to such items as pay records, banking records, loans and credit cards. Some companies post a limited number of statements. For some pay information, even your company payroll might not be able to get it for you later. If you haven't normally kept this information, you should begin to do so now, just in case. You do not have to have all of it to consult an attorney, but if you have it available it can make the process much easier if you do decide to file.

6 months of pay stubs / pay advices / income information: This includes all sources of money and may be things you might not think of. It starts with what people consider regular job income: Be aware that as companies move to online pay information, you may only be able to print a "complete" pay stub with the current information AND the YTD (year to date) information up until your next pay period. You may not be able to go back and get that information if you didn't print it. You may also need the YTD information for preparation of taxes or for domestic purposes too. Print and save your pay information each pay period and put it in a safe place.

Pay information for your spouse even if he/she is not filing bankruptcy with you

You also need information on all other sources of money that come into your household, such as regular gifts from others, support, part time jobs, sale of property, rent, and anything else that comes to mind. You may not have to include it all, but it sure will be easier for your attorney to prepare your documents with all your information easily available.

Detailed business records for income and expenses, especially for a six months before filing

Tax Returns, and all income forms such as W-2 or 1099

Bills, all recent ones, and also old ones with the original creditor's information, if the accounts have been turned over to collections

Bank statements: It is good to have a year's worth available

Retirement account statements and any books/documents which explain your retirement program

Of course, this is just a start on the information needed in your bankruptcy petition, but if you keep these paper records available, the process can be much easier.