When you file for bankruptcy, you need to understand that the courts are going to be paying close attention to your life and your payment records and bills even more so. Under a traditional bankruptcy proceeding, the trust is going to want to review all of your bank account records, card accounts, credit loans, tax paperwork and various other financial components. They are looking for any assets that can be sold to help pay down your debt. Another thing they are looking for is evidence of assets and income that are exempt under the conditions of the law. In the same manner as the one filing for bankruptcy relief, the court officials are bound to uphold the laws of the state and federal governments.
Make sure to have your documentation organized and ready for the courts. It lets them know that you are willing to cooperate with them. Even though this may be a difficult situation to deal with, those who have a willingness to cooperate and work with the court will benefit you in the long run. Being upfront and honest will get you a favorable result from the court officials.
When it comes to your tax returns, the courts normally like to see two years of returns. For everything else, you can expect to provide three months of documentation. As you file your documents with the court, it is imperative that you remember that you are under oath. Lying to the courts faces severe consequences, so it is important to be as honest as you can with the courts about anything that you have going on in your financial life. In the event of fraud, the courts can go back as far as they desire to prove the charges against you.
Most of the time, three months of records seems to be what the bankruptcy courts like to see. Some states will automatically require you to provide additional records. In Kentucky, you will need to provide six month?s worth of documentation. Different states are going to have different rules beyond that of the federal government. Getting a good lawyer is well worth the money you are going to pay for them in the end. Be prepared to surrender at least three month?s worth of records, but know that the court can always ask for more if they think there is a reason to delve into your financial past more.