Chicago Bankruptcy Attorney David Siegel Discusses Pre-Filing Requir...

According to Chicago bankruptcy attorney David Siegel, there are several pre-filing requirements that must be satisfied.  For example, before a case can be filed under Chapter 7 in the United States Bankruptcy Code, the debtor must submit to a credit counseling session.  The credit counseling session is a half-hour or one hour on the telephone or in person or on the computer whereby a credit counselor will ask specific questions concerning your assets, your liabilities, your income and your expenses.  The purpose of the credit counseling is to determine whether or not you qualify for a bankruptcy and also to advise you of some non-bankruptcy options that you have.  The typical cost for credit counseling is approximately $25 at the time of this writing and there are many companies out there that offer it by phone, by computer and by person.

 In addition to the credit counseling requirement, you must provide your most recent federal tax return.  Lastly, you must provide two months’ worth of pay check stubs.  Before your case can be filed, you are going to have to submit to that credit counseling and receive a certificate.  After your case is filed, your attorney will file the certificate with the court along with providing the pay advices in the tax returns to your Chapter 7 trustee. 

These are the prefiling bankruptcy requirements.  What I recommend to my clients is that you take the prefiling credit counseling just prior to being paid in full and that you keep submitting paycheck stubs to your attorney up until the time your case is filed.  As far as tax returns go, you want to send that most recent federal tax return to your attorney immediately so that you can knock off that specific requirement.  Contact a local bankruptcy attorney in your area to find out more information about the prefiling bankruptcy requirements.