Some Lesser Known Requirements in Bankruptcy

 

Bankruptcy is common enough that most people know the basic principles for filing a case.  However, some of the bankruptcy requirements are less well-known, which is why we always recommend you consult with an experienced bankruptcy attorney before filing a case.

Keep Orderly Records

First, the Court can require you to keep orderly business records if you own your own business.  Profit and Loss statements, payroll records for employees, inventories of goods or supplies, and prepared financial statements are just a few examples.  This rule partly exists so that a person cannot try to avoid investigation by claiming that records do not exist. If you aren’t organized and prepared beforehand to turn over these documents, then you could have a difficult time producing the necessary records when the Court asks for them.  Be sure to be honest and upfront with your attorney about any business ventures you have.  Taking the time to plan and prepare your case can save a lot of time and trouble down the road.

Cooperate with the Trustee

The second point is closely tied to the first.  While in a bankruptcy case, you have an obligation to cooperate with the bankruptcy Trustee.  The Trustee’s job is to look into your case to determine exactly what assets and sources of income you have.  If the Trustee has questions about exactly what your assets are or where your income comes from then you need to cooperate and provide the Trustee with answers.  If you do not then the Trustee can move to dismiss your case for failure to cooperate.  Again, this is an issue that rarely comes up so long as you are open and honest with your attorney.

At Bond & Botes we have years of experience handling consumer bankruptcy cases.  If you are going through financial hardship or considering bankruptcy, then please contact us.  We have convenient offices in Alabama and Mississippi, and we offer free initial consultations.  We can help you plan a path back to financial stability.