Debtors filing Chapter 7 or Chapter 13 bankruptcy are required to divulge details of their financial lives so that the trustee can make a proper assessment of their financial situation and come up with a fair plan which will repay creditors as much as possible while allowing the debtor to get a fresh start.
Below are some of the things debtors must include in their bankruptcy petition:
Bankruptcy debtors must report all of their income to the bankruptcy court. This includes income from “regular” employment and “irregular” employment. Income from child support, alimony, retirement payouts, payouts from investments must all be reported to the bankruptcy court. Even if a debtor has a small side business which doesn’t bring in much money, this too must be reported.
Recent Creditor Payments
The debtor must report to the bankruptcy court any creditor payments made in the 90 day period prior to filing bankruptcy. If you made a $1,000 payment (even if it was cash) to your doctor 60 days before filing bankruptcy, you need to report it on your petition If you made payments to family, friends or any company where you are an officer or owner in the 12 months prior to filing bankruptcy, you need to report it.
Freebies, Gifts And Charity
If a debtor gave gifts and/or made charitable contributions in the 12 months prior to filing bankruptcy, this too must be reported on the bankruptcy petition. Gifts can include cash or property transferred for little or no value to an organization or an individual including family members and friends.