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I recently read the following article written by Chapter 7 Trustee Robert F. Anderson in South Carolina, but most everything applies to Nebraska cases as well. Here are a few tips from this wise Trustee:

  1. Disclose, Disclose, Disclose.  Beyond a doubt, the most serious error committed by debtors is the failure to fully disclose all property, income, creditors, and transfers. 
  2. Be Specific.  Too many bankruptcy petitions fail to give the Trustee enough information to explain what an asset is worth and they leave the Trustee with more questions than answers.  Give the Trustee enough information to answer all possible questions and to give the Trustee a sence of confidence about the completeness of the disclosure.
  3. Fill in the Blanks.  There are 35 types of personal property listed on Schedule B.  Complete as many of those lines as possible, even if the amount to list is minimal.  If you list no jewelry on Line 7 but come to the court hearing wearing a watch or earrings, be prepared to be lectured.  
  4. Tax Returns.  Make sure the Trustee has received your tax returns (typically the last 2 returns) at least 7 days prior to the court hearing.  Some Trustees will not conduct the hearing if the returns are unsigned or if schedules or state returns are missing.
  5. Bank Statements.  Bring to court a copy of the bank statement showing the amount on deposit on the day the bankruptcy was filed.  The Trustee must verify how much was on deposit the day the case was filed, and he or she needs a copy of the bank statement to perform this job.
  6. Prepare an Inventory of all your Property.  Give your attorney a basic inventory of all property you own and the value of each item.  Here is a list to complete and give to your bankruptcy attorney.
  7. Bank Statements & Paycheck Stubs.  Give your attorney six (6) months of bank statements and paycheck stubs.  These documents are necessary to report your current and past income.
  8. Claims against other persons.  You must list every claim you have against another person on Schedule B.  This includes personal injuries, insurance claims, damage to property, unpaid wages, etc.  If you fail to list the claim you may forefeit the right to collect on it later, and you may find yourself defending a perjury charge.  In other words, list it or lose it.
  9. Past & Present Income.  The income you list on Schedule I should match what you earned for the past 6 months and for the past two tax returns.  If there is a difference you need to explain why income is less now than before.
  10. Is the Petition Internally  Consistant?  Chapter 7 Trustees constantly compare one part of the bankruptcy petition to the other parts.  If you earned $48,000 last year, then why does the schedule of monthly income show only $2,000 now?  If you deduct life insurance as a payroll deduction on Schedule I, then why is there no life insurance policy listed on Schedule B?  If you list a mortgage debt on Schedule D of $100,000, then why is there no real estate listed on Schedule A? 

In my experience, there more you think like the Trustee and the more you read the bankruptcy petition from the point of view of a Trustee, the better your case will be.  Think like the Trustee.