There are a lot of misconceptions surrounding bankruptcy. For example, many people see bankruptcy as a bad thing. But, in reality, there are a lot of pros when it comes to filing for bankruptcy. In fact, many people view filing for bankruptcy as a way to clear their credit card debt and achieve a fresh start. Read on to learn more about the process.
What Documents Do I Need in Order to File?
There are a number of documents you will need in order to file for bankruptcy. Be sure to obtain the following:
- Your last two years of filed federal income tax returns
- Last six months of paystubs
- Credit reports
- Copies of all bills currently due
- Copies of any documents sent by creditors or collectors
- Copies of any collection lawsuit against you
What to Know About Evaluating Your Assets
In order to begin the process, you must provide a list of everything you own. This can be tedious, so you may want to speak with an experienced bankruptcy attorney for more information.
When it comes to your bank accounts, you may only need to provide the last six months of statements. For real estate property and automobiles, an online market estimate may suffice.
When it comes to remaining clothing, household goods, and personal items, a general rule of thumb is to list what you would expect to pay at a yard sale. If you have jewelry, antiques, art, or collectibles of any kind, an appraisal may be required.
How to Calculate Your Expenses
Part of the process is providing your monthly expenses. It is important to note that if you have weekly expenses, such as groceries, commuting costs, etc, you should multiply that number by 56 and then divide by 12 to get your monthly cost.
You will need to list the following expenses:
- Rent or mortgage
- Insurances
- Car loan or lease payment
- Utilities (take an average)
- Cable/internet/cell phone
There are a number of other important expenses to include, such as:
- Medical copays
- Personal care
- haircuts, gifts, travel, etc.
- Tithing to a religious institution if applicable
If you have any questions or concerns, contact an experienced bankruptcy attorney as soon as possible. When it comes to bankruptcy, there is no time to wait.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.
