Just how Chapter 7 Functions
A part 7 instance begins with the newest borrower processing an effective petition to the bankruptcy proceeding judge offering the area the spot where the personal existence otherwise the spot where the business debtor is prepared otherwise has its own prominent office otherwise dominating possessions. (3) Plus the petition, the newest borrower must also document on courtroom: (1) schedules of property and you will obligations; (2) a schedule away from current earnings and you may expenditures; (3) a statement away from monetary things; and you will (4) a timetable out of executory agreements and you can unexpired leases. Provided. Roentgen. Bankr. P. 1007(b). Debtors must provide the assigned case trustee with a duplicate of one’s tax come back otherwise transcripts for present taxation year also tax statements recorded inside situation (as well as tax statements to possess previous years which had not come submitted when the case began). 11 You.S.C. § 521. They have to document: a certification away from borrowing guidance and you will a copy of every personal debt fees bundle put up using borrowing counseling; proof of percentage off businesses, or no, received two months before submitting; a statement away from month-to-month net income and you may any forecast increase in money otherwise expenses immediately following submitting; and you may an eye on any notice the fresh new borrower enjoys during the government otherwise county certified education or tuition membership.
Read moreIndividual debtors having mainly user expenses has extra file processing conditions
