People who are filing for bankruptcy have to take a long look at their finances. It shouldn’t surprise you, then, that you have to fill out a financial inventory when you file your bankruptcy petition. The document lists out several financial matters so that the court can ensure you qualify for bankruptcy.
As you take a look at your financial situation, you might be able to start to plan how you can handle things as you work through bankruptcy. You may also find some changes that you can make to help you remain out of debt once you’re done with bankruptcy.
What’s included in the financial inventory?
There are four components of the financial inventory that you’ll have to list out of the court:
- Income: You’ll have to account for at least the past six months of income. This doesn’t include Social Security if you receive it. It does include financial contributions from family members, as well as all other income for the filers.
- Debts: You need to list out all the debts that you have, including credit card debts and any accounts that have an open balance. While student loans typically aren’t included in a bankruptcy, you do need to list those.
- Assets: All of your assets, including art, jewelry, vehicles and property have to be included. There are some items that might be exempt, so discuss this with your attorney.
- Living expenses: You have to list out six months of normal living expenses. If there are some that vary from one month to another, you have to count the 12-month average.
Working closely with an attorney throughout the bankruptcy process can help to minimize your stress since you’ll know what responsibilities and rights you have. Your attorney can help you choose the chapter you’ll file under and work with you to ensure that you have everything in order each step of the way.