What Documents Do I Need to File Chapter 7 Bankruptcy in Oklahoma?

If you’re looking to get rid of debt, you might be wondering what documents you need in a Chapter 7 bankruptcy? Filing for Chapter 7 bankruptcy in Oklahoma requires many steps, making it a somewhat tedious process. However, it’s not impossible, and can actually be very easy once you know the requirements. Understanding the documents you need will make all the difference. This article will walk you through the essential paperwork required to successfully navigate this legal route.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often referred to as liquidation bankruptcy. This allows you to wipe out most of your unsecured debts through liquidating non-essential assets. Unsecured debts usually include credit card, cash loans, repossession balances, medical debts, and many other non-collateral debts. The limitations to this bankruptcy is that is doesn’t discharge federal tax debts, state debts, student loans, or familial support obligations. It’s important to know that not everyone qualifies for Chapter 7 bankruptcy. There is a means test used for eligibility, and this test compares the median income in Oklahoma to your income. For a single person with no kids, the median income to qualify is $55,358, and goes up from there with kids and spouses.

It’s important to note that if you don’t have assets, you can still file. There isn’t a requirement to have assets in a Chapter 7, but having extra assets are subject to being sold to pay creditors. A Chapter 7 bankruptcy is actually very ideal for someone who has no assets other than their car and home. This is due to a Chapter 7 allowing the debtor to have 1 customary vehicle and a house as exemptions. Thus, this allows the person to retain their house and car as long as they meet the requirements. It’s important to speak with a bankruptcy attorney to know if you have the means to file for a Chapter 7.

Identification Documents

The first documents you will ultimately need for a Chapter 7 are a current Drivers License or State ID and your Social Security card. The trustee usually requires a colored photo copy of the Drivers License for their records. However, sometimes a client will not have an up-to-date license. In this instance, the debtor would need to go to the DMV or tag agency to apply for a new one, and use the Temporary Drivers License as proof of ID.

Alternatively, someone might not know where there Social Security card is. In order to file, a debtor would need to make an appointment with the Social Security Administration for a new one. The process usually takes a week or two in order for them to send the card out. The only other way to avoid using a Social Security card would be to have a current W-2 that has a full Social Security number on it. Unfortunately, a lot of companies are forgoing to use the full, and often opt for the last 4 digits.

Filed Tax Returns

Tax returns are one of the biggest documents someone needs to file for a Chapter 7 bankruptcy. The trustee requires federal and state tax returns for the last two years. Your tax documents will show your income history and are necessary for completing the bankruptcy forms. These documents will also show if any businesses were in your name or any dependents you might claim. If you haven’t filed your taxes in the previous years, you’ll need to get this done before proceeding with your bankruptcy filing. The only exception to this rule are tax exempt filers, such as debtors who only receive Social Security benefits. These benefits aren’t counted as income in a bankruptcy therefore do no follow the same rules as a 1099 or W-2 employee.

Proof of Income

You must provide evidence of your income or means of living for the six months before filing for bankruptcy. This includes pay stubs, benefit statements, and any other documentation that proves your income. If you are receiving Social Security benefits, the award letter you get at the end of the year is required. This information will be used to perform the means test to determine your eligibility for Chapter 7 bankruptcy.

Bank Statements

You must gather all your bank statements from the last six months. The six months also includes the current month that you intend to file your bankruptcy, so technically it would be 6 and a half months. Additionally, this means every account you have open, not just the one you get your checks deposited into. These statements will show your financial transactions and help in assessing your average monthly income and expenses. If you receive a paycard through your employer, you will also need to provide those statements as if it were a bank account. Theoretically, it does act as one even if you didn’t set it up. Bank accounts can also include online accounts like Chime, Cash App or PayPal if you receive income from those sites.

Real Estate Documents

If you own real estate, documents such as your mortgage statement, home valuation, and property deed might be necessary. However, most of the time the trustee will only need the deed unless there are multiple properties. This is due to there being an exemption that allows a debtor to retain their property if they are up-to-date on payments or it’s paid off. These documents will help determine the equity you have in your property, which is important in the bankruptcy process.

Vehicle Related Documents

The trustee requires current titles for all cars that are in your name. However, effective July 1, 2022 all boat, motor and vehicle titles that are issued that are subject to a lien will be sent to lienholders. So only old or paid off vehicles will need the title. This means that you will need to provide a current copy of your registration to provide the necessary information. These documents help to determine the value of your cars and whether they have protection through bankruptcy exemptions. You should take into consideration that only 1 vehicle per debtor will have an exemption. This doesn’t outright mean they will take other cars, but they have no protection in the bankruptcy from it.

Obtaining a Credit Report

Obtaining a current credit report isn’t exactly necessary, but you should get one. You should also try to get a credit report that will pull from all the major credit bureaus. It will usually list most of your creditors and outstanding debts, helping to ensure you don’t overlook any debts when you file for bankruptcy. Your should review the credit report carefully and make sure no one is missing. Creditors don’t always hit your credit immediately, and some creditors like medical debt won’t always report at all.

Loan Documents

Gather all documents related to any other loans you may have, including personal loans, business loans, or student loans. These documents will help outline all outstanding debts that you need to address in your bankruptcy filing. It’s important to note that even if a loan isn’t dischargeable, you should still try to list it. Usually these would fall under a priority debt if they are not dischargeable. Ultimately, if you get a credit report these may not be necessary. Most full credit reports will have all the loan information available on them.

Business Information

Sometimes, you might have a business that you aren’t filing bankruptcy on, but it ties in to your personal finances. Alternatively, you might’ve closed a business in the last 6 years. If this is the case, you will need to provide documents regarding the closing of the business, such as proof of the close or sell date. You will also need the EIN and the address it was linked to. It’s always important to be forthcoming with this information initially instead of waiting for the trustee to ask in your meeting.

Credit Counseling Course

In a Chapter 7 bankruptcy, there are 2 credit counseling courses you will need to complete. These are online courses that are there to help you figure out how to manage your finances. Each course will take roughly an hour to complete. Only the first one is necessary in order to file initially, but the second one must happen before the debts will discharge. It’s recommended that you take the second one as soon as you file the bankruptcy, or at least before your meeting with the trustee.

Filing Your Documents for Chapter 7 Bankruptcy

After gathering all the necessary documents and completing the bankruptcy forms, you will file your case at the Oklahoma bankruptcy court. This is an online process that a bankruptcy attorney can provide for you to make the process seamless. You’ll need to pay a filing fee beforehand, which is $338.00 for a Chapter 7 bankruptcy. This will not include whatever attorney fee may apply. After this, the attorney will notify you of your hearing date and will help facilitate any reaffirmations you may need to sign.

Tulsa Oklahoma Bankruptcy Attorney

It can seem like a lot of documents are necessary for Filing for Chapter 7 bankruptcy. This is because the trustee requires careful preparation and attention to detail. By collecting all the necessary documents and understanding the process, you can ensure a smoother and more effective bankruptcy experience. Remember, this process is about getting a fresh start financially, so taking the time to prepare thoroughly is key to maximizing the benefits of bankruptcy. Our team here at Kania Law Office has a strong track record in helping clients resolve financial dilemmas through bankruptcy in Oklahoma. Contact us now at 918-743-2233 or online for a consultation with a bankruptcy lawyer.