When it comes to filing for bankruptcy, the information you are required to disclose is immense. The bankruptcy courts require a large amount of information from you. You aren’t just disclosing your debts and your primary financial information—it is much more involved than that. That’s why working with bankruptcy lawyers in Fort Worth will be extremely helpful to you. Bankruptcy lawyers Fort Worth will be able to assist you and prepare you for the questions you will most likely need to answer in the Statement of Financial Affairs, or as most bankruptcy lawyers refer to it, the “SOFA”.
Now, let’s dive under the cushions of your bankruptcy SOFA and review some questions and information you should be prepared for.
Income from employment or operation of a business
Any income that you have received year-to-date, as well as any income made during the previous two years, will be required for you to disclose. This income is used to show what type of income you’ve been making, as well as letting the court know of any changes.
Income other than employment or operation of a business
Any other income that you bring in, outside of your standard employment income is going to be required to be disclosed. Whether that is Social Security payments, retirement distributions, gifts, tax refunds, rental income, inheritance, and more. ANY other cash you have coming into your household needs to be disclosed.
If you sustained any losses from a fire, theft, gambling, or any other kind of injury or casualty during the last year prior to you filing for bankruptcy will need to be reported. If you have a question about whether or not something should be included, ask your bankruptcy lawyers in Fort Worth.
Repossession, voluntary returns, foreclosures
If you have any types of voluntary returns, repossessions, or foreclosures that have occurred during the last year, you are going to need to disclose them. This helps to clue the bankruptcy court into the big picture of your financial situation. It also lets them know of any assets that are no longer in your name.
Lawsuits and garnishments
If you have been party to any lawsuits in the last 12 months, you will need to disclose that information. This is to inform the bankruptcy trustee if you will be expecting to receive any kind of pay out in the future due to a lawsuit. Along the same lines, if you have had your wages garnished or had other property seized by creditors, you’ll need to list those, as well.
While these are only some of the questions you should expect to be asked for the SOFA, it’s not all of them. For a more detailed listing of what you should expect to see, talk to bankruptcy lawyers Forth Worth. They can guide you along in the process.