Part of your bankruptcy package that is filed with the federal court is a swath of financial disclosures. If the bankruptcy trustee has any reason to be suspicious about the disclosures they can ask you for more information. Read on to find out more.
What Are 521 Documents?
When you claim that you own certain pieces of property and earn a certain amount of income, further proof might be required. Named after the bankruptcy code of that number, these documents help the bankruptcy trustee verify the information about your financial situation. As you might know, the trustee is concerned with what you own, your income, your past debts, and just about anything else that might affect your case. In most cases, 521 document requests come just prior to your creditor's meeting. When asked for certain documents, you must comply or face issues with having your debts discharged. Your bankruptcy case could be dismissed for failure to send in the requested 521 documents.
What Documents are Requested?
Each bankruptcy case is unique and even state law has an effect on things like exemptions, but taking a look at the following common requests might help give you get a better idea of what to expect:
- Bank statements from the past several months.
- Pay statements from the past few months.
- Federal tax returns from the past few years.
It should be noted that the above documents may already be in the possession of your bankruptcy lawyer. If you are working with a lawyer, they may request you submit those documents along with other items needed to prepare your bankruptcy paperwork. In that case, the lawyer will comply with the 541 request on your behalf.
Additional Document Requests
Depending on your case, you might also be asked to submit the following documents. The more complicated and high-value your bankruptcy case is, the greater the need for verification.
- Mortgage information such as a most recent statement.
- Information about pension and retirement accounts.
- Profit and loss statements for sole proprietors.
- Investment account information including stocks, bonds, annuities, etc.
- Auto loan statements.
- Auto value proof such as a print-out from an online valuation service.
- Divorce or separation agreements.
- Life insurance policy information.
- Photographs of assets such as boats, jewelry, artwork, etc.
Often, filers are provided with a deadline, which is understandable since the creditor's meeting is already scheduled and the 521 documents must be verified prior to the meeting. To find out more about the 521 requests, speak to a company like David M. Todaro Co., LPA.