Filing Bankruptcy……What does “full financial disclosure” mean?
When you file a Chapter 7 or Chapter 13 bankruptcy case, the court requires you to make full financial disclosure. In general, this means you have to inform the court of everything you own and everything you owe. You will need to provide a list of all of your creditors and the debts that you owe, which debtors seem to be pretty happy to do. Afterall, you want to discharge or eliminate as much debt as possible.
The court also requires debtors to report all of his/her income. While most people think their salary is their income, you must consider all the other sources as well. Below are examples of sources of income that should be disclosed to the bankruptcy court:
- wages, salary, overtime pay, tips or bonuses
- stock dividends
- accrued interest
- income from real property
- profit from a business
- income from retirement accounts or pensions not protected by ERISA
- income from child support or alimony
- unemployment or worker’s compensation benefits
The above list is not exhaustive, but it gives you an idea of how extensive you must be in disclosing your income. An experienced bankruptcy attorney can help you review your finances and insure that you make the proper disclosures to the court.