How to Prepare Chapter 7 Bankruptcy Paperwork
When you file for Chapter 7 bankruptcy your assets will be liquidated to pay off your debts. In order to prepare for this type of bankruptcy you will need to prepare detailed paperwork outlining your financial situation. These are forms that you can get from your local bankruptcy court. They include your petition, statement of financial affairs, monthly budget and a list of your properties and debts.
- Draft your bankruptcy petition. This will officially start your bankruptcy proceedings. You will need to list your demographic information about the circumstances surrounding your bankruptcy.
- Prepare your statement of financial affairs. This is a detailed list of your outstanding debts and what payments you have made.
- Make a list of the names and addresses of all of your creditors. This is important because a Chapter 7 bankruptcy petition initiates an automatic stay against any future collection attempts. Therefore, your creditors need to be informed that you have filed for bankruptcy.
- Outline your monthly living expenses. The court needs documentation of how much you pay each month for housing, food, transportation, clothing and other necessities. This will be used to assess how to liquidate your property.
- Create a list of the property that you own – both personal and real. This should include your cars, appliances, furniture, books, clothing, jewelry, art and family heirlooms. Even if you plan to exempt any of it, you still need to disclose it in court.
- Submit all of this information with your filing request to the court.