When you file for bankruptcy protection there are certain facts and information about your finances that the court will need to know. This is true whether you file under chapter 7, chapter 13, or another chapter instead. If you own or have an interest in a business then the court will usually require that you provide certain business information and financial verifications. Any interest that you may have in a business must be disclosed to the bankruptcy court.
The business information that you will need to provide can vary from one case to the next, but will usually include certain basic information that the court needs to oversee your personal bankruptcy case. You will need to provide the name, address, and Federal Tax Identification number of the business. You will also usually need to provide the date the the business was started, as well as the date that the business folded if this is applicable.
In some cases the bankruptcy court may ask for certain details about the company, such as the practices used for the bookkeeping and accounting as well as any consultants or employees that the company has retained. You may be required to show the listing for any company inventory, and it is important that you disclose any company shares, partial ownership, or incorporation information.
Usually the bankruptcy court will require that you disclose any business interests that you have had for the previous 6 years, but the requirements may vary in some cases. A qualified and experienced bankruptcy attorney can help you determine what information and verifications the court will require. In most cases a business that has been closed must be reported for at least 3 years from the closure date if you file for bankruptcy protection.
If you own at least 50% of any company then the bankruptcy trustee may require previous company tax returns for the 2 years prior to filing for bankruptcy at a minimum. Other documentation may include any financial statements including profit and loss statements or copies of any monthly balance sheets and accounting records.
What if you do not own at least 50% of the business entity though? In this situation an experienced bankruptcy attorney can help guide you. Usually any personal tax returns for the previous years are requested, and recent profit and loss statements for the company are also usually required. The bankruptcy court will usually ask for a document or statement that shows the income and any profit or loss for the business venture covering the 6 months immediately prior to the bankruptcy petition filing.
The bankruptcy trustee may need the requested documentation to get an accurate overview of your individual financial situation. This allows the court to determine how to handle your specific case, because every bankruptcy filing is individual and unique. An experienced bankruptcy lawyer can walk you through the bankruptcy process to ensure that you get the results you want, and help you determine whether bankruptcy is right in the first place.