The scenario of filing under chapter 7 was completely different two years back. Currently the court appointed trustees at 341 hearings request for documents and records from the filers. Chapter 7 trustees do not trust debtor’s evaluation so they want to review the filed budget incorporated in filer’s petition. If these procedures seem to be troublesome for you then you can opt for other debt management programs.
Recently, the attorneys are instructing their clients who are filing under Chapter 7 to maintain a record of their receipts for every purchase they make. This includes your expenses on food, medical bills, transportation, utilities, insurance costs. Your trustee will be keen to verify the expenses involved in raising your child.
Your receipts can be compared with the figures of the filed budget. Therefore, try to be fair while preparing your budget that you will be presented before filing. Your petition can be disapproved if you provide wrong facts and figures in your budget.
You should start collecting the receipts the very moment you decide to file bankruptcy. But make sure you compile the necessary receipts a few days before filing.
The means test determines your eligibility to file for chapter 7 bankruptcy. In case your household income goes beyond the median then you are required to provide receipts of your expenses as far as possible. Subsequently, your budget will be considered under means test evaluation.
The court appointed trustee along with the United States trustee will analyze your means test case. The United States trustee will be sniffing around for a reason to disapprove your petition. So, try your best, leaving no stones unturned in order to get a positive result.
Provide detailed information to your attorney regarding your mode of expenditure along with the records of your expenses before you plan to file bankruptcy. This preparation will also prevent you from messing your financial situation.