My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
If you are thinking about filing for bankruptcy, you want to make sure that you have all the necessary documents. You don't want to go file and find out that you don't have everything you need.
Proof of Income
You are going to need to show how much money you make. There are several ways that you can do that. One is that you can take your tax papers in and attach copies to your filing. That will show what you made in the past year. Another choice is to take as many of your pay stubs in as possible. Not only will that show what you make per pay period, it will also show what you have made year-to-date. Having a record of your income is really important because you have to have enough money to pay back the creditors that you have to pay. It is better to take as much documentation of your income as possible. It's not possible to have too much, but you don't want to have too little.
Proof of Debt
You are also going to need to show the proof of your debt. That means you need to bring in copies of all of your bills, credit collection notices, etc. Bring in everything that shows how much you owe anyone. If you don't have anything that shows the most recent amount you owe, speak to that creditor and ask them to send you some kind of documentation as to how much you owe them, what the bill is for, and other similar information. It's better for you to show as much information on your debts as possible. When you file, some of the debts will be ones that you can defer while you will have to pay others, but showing everything and not just assuming what you can and can't pay will make it more likely that your bankruptcy will be approved.
Proof of Credit Counseling
You need to prove that you have tried to get some credit counseling. Bankruptcy is supposed to be your last resort, so you will need to show that you tried to do what you can to both alleviate your debt and learn better ways of dealing with your money and any debt.
If you are thinking of filing for bankruptcy, it's important to make sure that you have all the right documentation. Having it ready to go will make it easier for you to get your bankruptcy filed and approved. Check out a website like http://www.haven-law.com/ for more information and assistance.
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