Forest Park bankruptcy attorney lays out what must be done before filing Chapter 7 or Chapter 13 bankruptcy? In order for someone to file a bankruptcy, whether it’s a Chapter 7 or a Chapter 13, you have to do several different things. To highlight a few of those things you must do, you have to make sure that your taxes for the previous years have been filed. In a Chapter 7, those years are for the previous one year and in Chapter 13, you must have filed the previous four years of taxes in order to file for bankruptcy. This is only taxes for the federal level, unless the trustee specifically asks for the state level of taxes. So if you have not filed your taxes in a long time, you will have to file your taxes in order to file an Illinois bankruptcy case.
Another thing you have to do is provide your attorney with income verification. This verification can be in the form of pay advices which are your pay stubs for your work or if you are not working and you have no wages, then you would have to provide an affidavit stating that you are unemployed and you have no pay advices. And this affidavit can be drawn up by your attorney for you to sign.Also, income is not just wages. It’s from any income. So if you are receiving unemployment benefits or Social Security benefits, then that information also has to be provided to your attorney and has to be proven with some sort of statement from your Social Security benefits check for unemployment check or disability check for that matter. This is required even if you file bankruptcy yourself.
After that, you also have to complete what is called the prepetition credit counseling class. This is a class that can be taken online or over the phone or in a classroom with one of many providers. This class is very easy. It’s very good, educational and it’s intended to teach people in bankruptcy the different ways of managing finances. No one can fail this class. It is a class that you complete and once it is completed, it is filed with the court and it is only good for 180 days, meaning that if you plan on filing bankruptcy, you should take the credit counseling course closer to the filing date because it only is good for 180 days which means it expires after that 180 days. And you would have to take another class and pay more money to take the class again.
These are just a few of the highlights of what would be needed in order to file Chapter 7 bankruptcy. Some of the more specific things could be a comparative market analysis for the value of your property, your real estate property. In order for us to know whether there is an asset that is in danger of being liquidated, we would need to get a comparative market analysis to show the probability of the property being sold at a certain amount of money. That in turn is going to give us an idea of whether or not filing a Chapter 7 or a Chapter 13 is a good recommendation for you before you file because we do not want to put any assets in danger of liquidation from the trustee if we don’t have to. If there is no choice, then there is no choice however this is a prerequisite for filing a bankruptcy in order for us to know whether or not it’s a good idea. A comparative market analysis is something that may need to be done.
So there are several different things that can be necessary in order to file a bankruptcy petition. But to highlight those again, and the person filing for the bankruptcy, the petitioner needs to have their taxes completed, their income verification and they need to complete the credit counseling class in order to file a bankruptcy case. If you need further information, it should be easy to find a bankruptcy lawyer.