If you are considering filing Chapter 7 bankruptcy, one of the most important steps in the process is providing documents and information to the Chapter 7 Trustee.
Many people feel overwhelmed when they receive the trustee’s document request. The good news? These requests are completely normal. The trustee is simply verifying the accuracy of your petition and making sure the bankruptcy process is fair to everyone involved.
Here’s a breakdown of what is typically requested — and why.
1. Tax Returns (Usually the Last 2 Years)
Why it’s needed:
Tax returns help the trustee verify your income, check for large refunds, and confirm that the information in your bankruptcy schedules is accurate. Refunds may be considered assets, depending on timing and exemptions.
2. Pay Stubs (Typically 6 Months Prior to Filing)
Why it’s needed:
Your pay stubs are used to calculate your average income for the “means test,” which determines eligibility for Chapter 7. They also confirm current income levels listed in your paperwork.
3. Bank Statements
Why it’s needed:
Trustees review bank statements to:
- Verify account balances on the date of filing
- Check for unusual transfers or large withdrawals
- Ensure all accounts were disclosed
Transparency is critical in bankruptcy. Failing to disclose an account can cause serious problems.
4. Vehicle Titles and Registrations
Why it’s needed:
The trustee must confirm ownership, value, and whether there are liens on vehicles. This helps determine whether your equity is protected by exemptions.
5. Real Estate Documents (If You Own Property)
This may include:
- Mortgage statements
- Deeds
- Property tax statements
Why it’s needed:
The trustee evaluates the property’s value and equity to determine if it is fully protected under applicable exemption laws.
6. Retirement Account Statements
Why it’s needed:
Most retirement accounts (401(k), IRA, pensions) are protected in bankruptcy, but the trustee must verify the type of account and current balance.
7. Lawsuit or Settlement Information
Why it’s needed:
Pending lawsuits or potential claims are considered assets — even if you haven’t received money yet. The trustee must determine whether those claims belong to the bankruptcy estate.
8. Transfers of Property
You may be asked whether you:
- Gave away property
- Repaid family members
- Sold assets
Why it’s needed:
The trustee reviews transfers to ensure that assets weren’t improperly moved before filing. Bankruptcy law requires equal treatment of creditors.
9. Business Records (If Self-Employed)
This may include:
- Profit and loss statements
- Bank statements
- Accounts receivable
Why it’s needed:
The trustee must understand business income, assets, and potential value.
Why the Trustee Requests All of This
The Chapter 7 trustee has three main responsibilities:
- Verify Accuracy – Make sure your petition is complete and truthful.
- Protect Creditors – Ensure that any non-exempt assets are properly administered.
- Confirm Eligibility – Determine whether you qualify for Chapter 7.
Remember: The trustee is not your enemy. They are a neutral party overseeing the legal process.
The Bottom Line
Providing complete and accurate documentation is essential for a smooth bankruptcy process. Most Chapter 7 cases are “no-asset” cases, meaning nothing is taken — but full disclosure is always required.
If you are considering Chapter 7, having experienced counsel to guide you through the documentation process can make all the difference.
If you have questions about whether Chapter 7 is right for you, contact our office for a consultation.
