When you file for bankruptcy, you’re going to need to prepare and submit a lot of paperwork. It seems like overkill but, the law requires very detailed financial disclosure.

For example, the law requires that you file a petition to initiate your bankruptcy case, numerous schedules to show what you own, how much debt you have, the type of debt that you have, your monthly income and expenses, and excerpts of your financial history, all to enable the court and your creditors to determine if you qualify for the relief that you seek in your particular bankruptcy case.

A better way to understand this is to first explain the reasons why someone (or some business) might file for bankruptcy.

Some of the most common objectives for filing for bankruptcy are:

(A) to discharge overwhelming unsecured debts;

(B) to cure or bring current a mortgage arrearage to retain a residence or other real estate;

(C) to keep creditors at bay while proposing a personal or business plan of reorganization; or

(D) to pay back all or some part of the debt for which the creditors are seeking collection because of the existence of high income, equity in assets or non-dischargeable debts.

You must thoroughly and accurately fill out and file all the paperwork mentioned above so that the court and creditors can determine:

(A) if you have limited or no equity in assets so that you can discharge unsecured debts without having to pay anything back;

(B) whether you have enough net monthly income to be able to feasibly cure or bring a mortgage arrearage current while maintaining payment of other necessary monthly expenses;

(C) whether you filed the case in good faith to enable creditors to be kept at bay from its collection efforts; and

(D) where you are compelled to pay back something to creditors, how much you need to pay back based on your equity in assets and excess monthly income.

Please feel free call me at (570) 823-9400 at my office in Wilkes-Barre, Pennsylvania or write to me at dh@lawofficeofdavidharris.com, if you would like free information about all that I have discussed.