Bankruptcy is a legal process designed to help individuals or businesses overwhelmed by debt regain control of their finances. When filing for bankruptcy, you will go through a series of proceedings, including hearings, where you will be required to provide information and answer questions about your financial situation. Below, get prepared for these questions to ensure a smooth and successful bankruptcy process.

About Your Income 

One of the key aspects of assessing your financial situation is understanding your current income and any additional income sources. You’ll probably be asked questions like: 

• What’s your current source(s) of income?
• Is there any additional income or assets not previously disclosed?
• Can you provide documentation to support your income claims?

About What You Own 

Your assets are also an important consideration when filing for bankruptcy. If you have a lot of non-exempt assets, like a boat or jewelry, you may be asked by the court to liquidate these things and put the money into your debt before the rest can be discharged. 

However, most of the time, people who are eligible for a Chapter 7 bankruptcy don’t have a lot of non-exempt assets anyways and the court won’t take things like your primary residence or vehicle. 

About Your Financial Habits 

Your financial habits and budgeting approaches will also be examined. The court may ask questions to gauge your spending habits and financial discipline, such as:

• Explain your spending habits, lifestyle, and budgeting approaches.
• What steps are you taking to minimize unnecessary expenses and maximize income?
• What led you to file for bankruptcy?
• Have you made any unusual financial transactions recently?
• Have you obtained any loans or credit in the recent past?

Do You Need An Attorney? 

Filing for bankruptcy can be incredibly challenging, especially when you’re dealing with not being able to pay your bills or even meet your family’s basic needs for food, clothing, and shelter. Get the help you need overcoming your financial problems today by working with our experienced, professional bankruptcy attorneys at Sims Bankruptcy Law, PLLC. 

Contact us today for more information or to book a time to come in for your free initial consultation. Call now at (254) 304-7161 or use our short online contact form and we’ll get back to you as soon as possible. Our experienced legal team is available now to answer your important questions.