Bankruptcy Checklist of Documents for Your Attorney

Financial difficulties can be stressful, and deciding whether to file bankruptcy is an important decision. One of the best ways to make your initial bankruptcy consultation productive is to arrive prepared.

Bankruptcy is a document-intensive legal process. Your attorney needs an accurate picture of your income, expenses, debts, assets, property ownership, and recent financial transactions before determining whether bankruptcy is appropriate and, if so, which chapter may provide the best relief.

The more complete the information you provide, the better your attorney can identify potential issues before a bankruptcy petition is filed.

This bankruptcy checklist can help you prepare for your consultation.

Bring These Documents to Your Legal Consultation

You may not have every document listed below when you first meet with an attorney. That’s okay. Bring what you have and be prepared to discuss anything that is missing.

1. Proof of Income

Bring documentation showing all sources of household income.

Depending upon your circumstances, this may include:

• Pay stubs;
• Self-employment or business income;
• Social Security benefits;
• Retirement or pension income;
• Unemployment compensation;
• Workers’ compensation benefits;
• Disability benefits;
• Rental income;
• Child support or alimony received;
• Bonuses and commissions; and
• Other regular sources of income.

For many consumer bankruptcy cases, your attorney will need detailed income information covering at least the six full calendar months before the anticipated bankruptcy filing, as well as information concerning your current income.

This information is particularly important when evaluating the Chapter 7 means test and determining projected disposable income in Chapter 13.

Importantly, simply earning less than your state’s median income does not by itself answer every Chapter 7 eligibility question. The means test involves several calculations, and other eligibility considerations may also apply.

2. Federal Income Tax Returns

Bring your most recently filed federal income tax returns and, if available, returns from prior years.

Your attorney will determine which returns are required based upon the type of bankruptcy being considered and your particular circumstances.

Tax returns can provide important information concerning:

• Income;
• Dependents;
• Businesses;
• Real estate;
• Investment income;
• Retirement distributions;
• Tax refunds; and
• Other financial matters.

If you have unfiled tax returns, tell your attorney immediately. Do not assume that you must resolve the issue yourself before obtaining bankruptcy advice.

Unfiled tax returns can significantly affect a bankruptcy case, particularly in Chapter 13, and your attorney should evaluate the situation before you proceed.

3. Bank and Financial Account Statements

Bring recent statements for every financial account in which you have an interest, including:

• Checking accounts;
• Savings accounts;
• Money-market accounts;
• Certificates of deposit;
• Credit-union accounts;
• Online banking accounts;
• Brokerage and investment accounts;
• Cryptocurrency accounts or exchanges; and
• Other accounts containing money or investments.

Your attorney may need several months of statements depending upon the case.

Bank statements are particularly important because they can reveal income, transfers, unusual transactions, payments to creditors, and the amount of cash available when the bankruptcy case is filed.

4. A Complete List of Your Debts

Prepare a list of everyone you owe money to—even if you intend to continue paying them.

Include:

• Credit cards;
• Mortgages and home-equity loans;
• Vehicle loans;
• Personal loans;
• Medical bills;
• Student loans;
• Tax debts;
• Payday or finance-company loans;
• Judgments;
• Collection accounts;
• Business debts;
• Money owed to friends or relatives;
• Co-signed debts; and
• Any other financial obligations.

Bring recent bills, collection letters, loan statements, and creditor correspondence if available.

Do not intentionally leave a creditor off your list because you want to “keep” that debt outside bankruptcy. Your attorney needs a complete picture of your liabilities to properly advise you.

5. Real Estate Documents

If you own or have any interest in real property, bring information concerning:

• Your home;
• Rental property;
• Vacant land;
• Timeshares;
• Inherited property;
• Property owned jointly with another person; and
• Property located outside the United States.

Useful documents may include:

• Deeds;
• Recent mortgage statements;
• Home-equity loan statements;
• Property-tax bills;
• Recent appraisals;
• Closing statements; and
• Information concerning the property’s approximate current value.

Property ownership is one of the most important issues to evaluate before bankruptcy because exemption laws, liens, equity, and the manner in which property is titled can substantially affect the case.

6. Vehicle Information

Bring information concerning every vehicle you own, finance, lease, or have an ownership interest in, including:

• Cars;
• Trucks;
• Motorcycles;
• Boats;
• Recreational vehicles;
• Trailers; and
• Other titled vehicles.

Useful documents include:

• Titles or registrations;
• Loan statements;
• Lease agreements; and
• Information concerning the approximate current value and mileage.

7. Retirement, Investment and Insurance Information

Bring recent statements for:

• 401(k) accounts;
• IRAs;
• Pension accounts;
• Brokerage accounts;
• Stocks and bonds;
• Annuities;
• Cash-value life insurance; and
• Other investments or financial products.

Many retirement assets receive significant protection under bankruptcy and nonbankruptcy law, but your attorney still needs to know that they exist and how they are held.

8. Information About Your Other Assets

Bankruptcy requires disclosure of more than houses, cars, and bank accounts.

Be prepared to discuss property such as:

• Jewelry;
• Firearms;
• Collectibles;
• Artwork;
• Electronics;
• Valuable household property;
• Business interests;
• Intellectual property;
• Claims against other people;
• Expected inheritances;
• Security deposits;
• Tax refunds;
• Money owed to you; and
• Other property with meaningful value.

Disclosure does not mean that you will lose the property.

Many assets can be protected by applicable exemptions. The purpose of providing this information is to allow your attorney to determine what must be disclosed, how it should be valued, and whether it can be protected.

9. Lawsuits, Garnishments and Collection Documents

Tell your attorney about any lawsuit or legal proceeding involving you.

Bring copies of:

• Lawsuits;
• Summonses;
• Judgments;
• Wage-garnishment notices;
• Bank-levy notices;
• Foreclosure papers;
• Repossession notices;
• Eviction proceedings;
• Collection letters; and
• IRS or state tax notices.

Also tell your attorney if you have a claim or lawsuit against someone else, including a personal-injury claim, insurance claim, employment claim, or other potential right to receive money.

Those rights may constitute assets that must be disclosed in bankruptcy even if no lawsuit has yet been filed.

10. Information About Recent Transfers and Payments

Your attorney may ask about significant financial transactions that occurred before bankruptcy.

Be prepared to disclose:

• Property sold or transferred;
• Property given to relatives or friends;
• Money transferred between accounts;
• Large cash withdrawals;
• Repayment of loans to family members;
• Significant payments to individual creditors;
• Property transferred to a spouse;
• Vehicles or real estate recently sold;
• Closed financial accounts; and
• Other unusual transactions.

Do not attempt to transfer, sell, give away, or retitle property to “protect” it before bankruptcy without first obtaining legal advice.

Transfers made before bankruptcy can create significant problems and may be investigated by the bankruptcy trustee.

11. Your Monthly Household Budget

Prepare a realistic estimate of your monthly household expenses.

Include expenses such as:

• Rent or mortgage;
• Electricity, water, and utilities;
• Food and household supplies;
• Clothing;
• Transportation;
• Vehicle payments;
• Insurance;
• Medical expenses;
• Childcare;
• Support obligations;
• Taxes;
• Telephone and internet;
• Education expenses; and
• Other necessary household expenses.

An accurate budget helps your attorney evaluate whether Chapter 7 or Chapter 13 may be appropriate and, in Chapter 13, whether a proposed repayment plan may be financially feasible.

Additional Documents You May Need

Depending upon your circumstances, your attorney may also request:

• Driver’s license or other government-issued photo identification;
• Social Security card or other acceptable evidence of your Social Security number;
• Marriage certificate;
• Divorce decree or marital settlement agreement;
• Prenuptial or postnuptial agreement;
• Child-support or alimony orders;
• Business tax returns and financial statements;
• Profit-and-loss statements;
• Corporate or LLC documents;
• Trust documents;
• Probate or inheritance documents;
• Credit reports;
• Insurance policies; and
• Certificates from required bankruptcy credit-counseling courses.

Not every debtor will need every document on this list. Your attorney should provide a more specific document request after evaluating your circumstances.

Think About Your Goals Before the Consultation

Documents tell your attorney what your financial situation looks like. Your goals tell your attorney what you are trying to accomplish.

Before your consultation, consider questions such as:

• What is causing my present financial difficulty?
• What debts am I most concerned about?
• Am I facing a lawsuit, garnishment, repossession, or foreclosure?
• Is keeping my home a priority?
• Do I need to keep a financed vehicle?
• Are there assets I am particularly concerned about protecting?
• Do I owe significant taxes?
• Do I have student loans?
• Am I behind on mortgage or vehicle payments?
• Have I recently transferred property or repaid money to relatives?
• Do I own a business?
• Is my income likely to increase or decrease soon?
• Have I filed bankruptcy before?
• What do I hope my financial situation will look like after bankruptcy?

These questions can help your attorney determine whether bankruptcy is appropriate and whether Chapter 7, Chapter 13, or another alternative should be considered.

Complete Disclosure Is Essential

One of the most important principles in bankruptcy is complete and accurate disclosure.

Do not decide on your own that an asset, debt, account, transfer, or financial transaction is unimportant and therefore does not need to be mentioned.

Tell your attorney about it and allow your attorney to determine how it should be treated.

This includes property that you believe has little value, accounts with small balances, jointly owned property, money owed to relatives, property located outside the United States, potential lawsuits, expected inheritances, and financial transactions that may have occurred months or years before filing.

Many assets are protected by exemptions, and many transactions have perfectly reasonable explanations. But your attorney cannot properly protect you or advise you about an issue that has not been disclosed.

Preparing for Your Bankruptcy Consultation

You do not need to arrive at your first consultation with a perfectly organized financial file.

Start with what you have.

The purpose of the initial consultation is to allow the attorney to understand your financial circumstances, identify potential problems, explain your options, and determine what additional information will be necessary if you decide to proceed.

Bankruptcy may provide substantial relief, but it is not necessarily the best solution for every financial problem. A qualified bankruptcy attorney can evaluate your debts, income, assets, and financial goals and help you determine whether bankruptcy—or an alternative—is appropriate.

If you are considering filing bankruptcy without an attorney, the USCourts.gov. also provides information concerning the bankruptcy process and pro se filings.

Florida residents considering bankruptcy can schedule a consultation with a Florida bankruptcy attorney to discuss their financial circumstances and available debt-relief options.

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