Understanding the new bankruptcy law
(4 pages total - click at bottom of page at link to keep readin)
:format(webp))
Increased Paperwork and Expense Load
Paperwork overview. The burden on the consumer to document income and expenses has vastly increased under the new law. According to the American Bankruptcy Institute, consumers must provide:
- A list of all creditors, secured and unsecured.
- Schedules of assets and liabilities.
- Schedules of income and expenses.
- Certificate of credit counseling.
- Evidence of payment from employers, including pay stubs of the past 60 -days.
- Statement of monthly net income.
- Tax returns for the most-recent tax year.
- Tax returns for several years prior to the filing, if those returns hadn't previously been filed with the IRS.
- Photo identification.
If these documents aren't provided to the bankruptcy court within 45 days of the initial filing, the court will automatically dismiss the case. You can file for one 45-day extension, which may or may not be granted.
(4 pages total - click at bottom of page at link to keep readin)
Increased Paperwork and Expense Load
Paperwork overview. The burden on the consumer to document income and expenses has vastly increased under the new law. According to the American Bankruptcy Institute, consumers must provide:
- A list of all creditors, secured and unsecured.
- Schedules of assets and liabilities.
- Schedules of income and expenses.
- Certificate of credit counseling.
- Evidence of payment from employers, including pay stubs of the past 60 -days.
- Statement of monthly net income.
- Tax returns for the most-recent tax year.
- Tax returns for several years prior to the filing, if those returns hadn't previously been filed with the IRS.
- Photo identification.
If these documents aren't provided to the bankruptcy court within 45 days of the initial filing, the court will automatically dismiss the case. You can file for one 45-day extension, which may or may not be granted.
