In order to get the most out of your bankruptcy worksheet, you have to be very honest with yourself and take a detailed look at your finances. There are several steps you will need to go through. Use these steps to get the most out of your bankruptcy worksheet.
- Consider why you want to file for bankruptcy. You likely have a good reason to file for bankruptcy, but the first step of the bankruptcy worksheet is to write these reasons down. There are many reasons that are valid for filing and you need to be sure of what you want to achieve through the process.
- Classify your debt. When you are taking a look at your debt, you will need to determine whether it is personal debt, a business debt, or if you have both kinds that you want to focus on.
- Explain your case. While you briefly mentioned your reasons for wanting to file for bankruptcy, you will use this section to go into more detail about your current situation. You will also use this section to list any major expenses you may have, including dependants.
- Estimate your debt. Take the time to write down all of your debt, the amount owed, and the kind of debt it is so you really know what you are looking at for your bankruptcy filing.
- Outline mortgages or auto loans. You will need to detail any mortgages or auto loans you are responsible for repaying. Also, make a note of whether or not you are up to date on your payments. If you are planning on keeping these items, you should continue to make payments through the course of your bankruptcy.
- Detail your income and expenses. Be sure to write down all of your monthly income and expenses so you know the amount of disposable income you will have.
- List your real estate and personal property. You should detail all of the assets you currently have including your retirement accounts and any property you own.
- Use your complete financial snapshot. You will use this complete snapshot to determine whether or not bankruptcy is right for you and if so, the type of bankruptcy you may want to consider.