Begin with details about your debts and your property.

 Many individuals who file for bankruptcy are surprised by the large amount of detailed information that must be provided to the court. Luckily, you will not have to assemble all of your information to start the bankruptcy filing. The bankruptcy petition itself is only two pages long and does not require a lot of detail. Because of this, you can file for bankruptcy very quickly. This would be appropriate, for example, if you are facing foreclosure of your house or eviction from your apartment.

Planning tip: When you file your tax return the IRS provides the forms for you. In contrast, bankruptcy courts do not provide free forms. You will have to get your own forms. You can use the forms in Appendix 4 of this book; they should be identical to nearly all of the forms that you will need. Bankruptcy forms are available in legal stationery stores. These stores sell many types of blank legal forms like deeds and wills. Many larger stationery stores will have a filing cabinet of legal forms, including a packet of bankruptcy forms that will include all of the forms that you will need. Look carefully at the forms in the appendix to see that they match your own.

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Planning tip: One advantage of getting your forms locally is that some local bankruptcy courts will only accept forms printed by certain printers. Most legal stationery stores that cater to lawyers will ensure that their forms meet all of the local court requirements. There are stationery suppliers that sell forms across the country. However, you may find that your local court will not accept them. The best course is to buy a packet of local bankruptcy forms or call your local bankruptcy court and ask which sets of forms they will accept and which they will not.

Although you don't need to provide a lot of information with the initial bankruptcy petition, within the next two weeks you will have to file schedules detailing most of the financial aspects of your life, including your income, your property, and your debts. Getting this information together is normally far more time consuming than preparing to file your income tax return. For many debtors, gathering the information proves a daunting job.

Information About Your Property
Generally, you must provide the court with accurate and detailed information about all of your property. You should keep in mind that this includes property that you own but that is held by another. Your property also includes expectancies, such as tax refunds, inheritances, divorce property settlements, and insurance proceeds that will be paid to you. If you operate an unincorporated business, money owed to the business by customers will also need to be listed on your schedules.

Besides listing all of your property you will also need to establish the value of such property. The law requires that you provide the current fair market value of the property. If the property is not new, this may be difficult, but you need to estimate as accurately as you can. Some items, such as autos and collectibles, can be valued using standard valuation guides found in bookstores or at the public library. Other items will require an estimate.

Information About Your Debts
You will also need to prepare schedules listing your creditors with current outstanding balances. In some cases, this information may be difficult to find.

Planning tip: The amount you owe to a specific creditor can usually be determined by contacting the creditor's accounts receivable department, and asking them for your current balance.

Finally, you will need to provide the court with a schedule of your current income. If you have filed a joint bankruptcy petition with your spouse, you will need to detail both spouses' monthly income. One of the most time-consuming chores is to prepare Schedule J-Current Expenditures of Individual Debtors. This is, essentially, a monthly household budget. Of course, if you already prepare such a calculation for your own use, then this will be an easy chore. If you have little idea where your money goes each month, you will need to sit down with your checkbook, credit card reports, bills and receipts, and piece together an acceptable explanation. Do not underestimate the amount of time that this may take.