What must be included on a bankruptcy financial statement?

| May 22, 2015 | Personal Bankruptcy |

A lot of paperwork is generated when a New York resident chooses to file for personal bankruptcy. For this reason, some individuals decide to retain the services of professionals who work in the bankruptcy and debt relief fields to help manage the requirements of the bankruptcy process. Whether a person files for Chapter 7 or Chapter 13 bankruptcy, he or she may be asked to include among his many documents a personal financial statement.

A personal financial statement groups a party’s assets and liabilities together. This organizational scheme allows a court to see how much a party owns and how much he owes with regard to his suitability for bankruptcy. Depending upon the person’s financial situation, a personal financial statement may be extensive or relatively short.

The types of inclusions that a person may group with his or her assets are the values of money they have in savings, checking and retirement accounts. The individual may also include any property values if they own the goods or real estate outright. Other accounts and even everyday household items can be listed as assets for a person filing for bankruptcy.

With regard to liabilities, a person may include credit card, mortgage and car loan totals. Moreover, the individual may add any back taxes he or she owes, as well as personal debts they owe to individuals. After listing assets and liabilities on a personal financial statement, a person will generally total up their net worth by subtracting the total of liabilities from the total of assets.

Many computations are made during the process of filing for bankruptcy. The establishment of person’s net worth through the use of a personal financial statement is just one important part of the entire bankruptcy procedure. For assistance with preparing financial statements and other bankruptcy-related documentation, interested parties may retain their own advisors to help see them through their filings.

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