Filing for bankruptcy may be your lowest moment in life, but it can give you a much-needed opportunity to put your house in order. However, you ought to be forthcoming with your financial details to enjoy the benefits of a bankruptcy discharge.
Failure to disclose certain information can have undesirable consequences, and you may not get the help you sought when filing for bankruptcy. That said, here is what you need to have at the back of your mind.
List all your debts and creditors
Most unsecured debt is discharged after filing for bankruptcy. However, bankruptcy cannot help discharge a non-existent debt. If you fail to include a debt, it will not be part of the bankruptcy proceedings. You may still have to repay it, even if it was dischargeable.
You should also declare any expected future sources of income. These include pension funds, annuities or a pending lawsuit.
Don’t hide any assets
You must be honest about all the assets you fully or partially own. Even if you have a prized car that you would not wish to lose, you should not fail to disclose its existence. You may pay a higher price since it is illegal to hide assets. Besides, you may be surprised to find out that the car can be exempted, and you can legally keep it.
Gather your documents
Tax returns, income documentation, retirement and bank account statements are some of the documents you will need. Having them at hand is crucial as you will need to prove the accuracy of the information submitted.
Learn more about the bankruptcy process
It is necessary to know how everything works and what’s needed before you begin the process. It will ensure that you know your rights and help you navigate the bankruptcy process without difficulty.