Business Documents and Back-up Information Required for Self-Employed Chapter 13 Debtors

It is crucial that individuals filing a Chapter 13 bankruptcy and who are self-employed or business owners know that they must provide additional information to the Trustee.  That information includes:

(A) Projection of average monthly income and expenses for the next 12 months;

(B) Evidence of appropriate business insurance;

(C) Inventory of goods as well as a list of business furnishings and equipment as of the date of the filing of the petition;

(D) Monthly income and expense statements for at least the 6 months preceding the date of the filing of the petition, or for such shorter time if the business has been in operation for less than the requisite 6 months, signed by the debtor under penalty of perjury, including a statement regarding incurred and unpaid expenses;

(E) Tax returns for at least 5 years or since the start of the business, whichever period is shorter; and

(F) Such other evidence requested by the chapter 13 trustee, including bank statements, canceled checks, contracts, or other information relevant to the debtor's ability to fund the proposed plan.

These items are required by local bankruptcy rules in the Central District of California.  Be aware these requirements may only apply to the Central District of California.  As always, do not take this information as legal advice and by providing it you are not entering any form of attorney client relationship with Andrew Mansfield.  Seek the advice of an attorney if you are contemplating filing bankruptcy.