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In every instance where you retain an attorney to assist with a legal matter, it is important to fully disclose relevant information. The problem can often be determining what is relevant. In Bankruptcy cases almost every asset and financial action is relevant regardless of how minor it may seem at the time. For instance, recent amendments to the Bankruptcy Code changed the eligibility requirements for filing a Chapter 7 bankruptcy case. Most notably, a means test was instituted under 11 USC 707(b)(2)(A). The means test not only allows the Bankruptcy Court to determine the ability of a potential Debtor to pay back his or her debts in a Chapter 13 case, but also permits the court to dismiss or convert a Chapter 7 case if a presumption of abuse arises.

Many debtors will qualify for a Chapter 7 based solely on the fact that their average monthly income is below the state median. If a debtor’s income is below the applicable median income only a limited portion of the means test must be completed. However, if a debtor’s income exceeds the median family income, a debtor will need to provide detailed documentation of monthly expenses to allow a bankruptcy attorney to complete means test. Failing to provide the appropriate documentation will delay the preparation of the bankruptcy Petition and could ultimately result in the denial of a Discharge. This means providing copies of monthly bills and receipts for living expenses even if the documents seem trivial. Rebutting the presumption of abuse and qualifying for discharge under Chapter 7 just might depend on a debtor’s ability to produce sufficient documentation. Determining which documents are relevant in this regard should be left up to your bankruptcy attorney.