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In Chapter 7, the court will use Schedule J to evaluate your ability to pay a reaffirmation agreement. A reaffirmation agreement creates a new contract between a debtor and a creditor. It is used primarily for auto loans when the filer wants to keep a car.
Chapter 7 discharge is less expensive, much faster, offers a more reliable outcome and allows rebuilding of credit sooner than debt settlement.
Official Form 423, which was used to document the completion of a required course on personal financial management, was discontinued effective December 1, 2024.
Your first document: Certificate of Formation The primary document youll need is a Certificate of Formation (Form 201), filed with the Texas Secretary of State. It should include: Business name and entity type. Corporations purpose.
Schedule J: Expenses (Official Form 106J) works alongside Schedule I. This is where you list your monthly expenses, such as rent, food, utilities, transportation, and other living costs. For most Chapter 7 filers, expenses either match or exceed their income, which is normal.
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Schedule J helps the bankruptcy trustee determine your disposable income, which is the amount of money you have left over each month after paying your necessary expenses. As we discussed in conjunction with our analysis of Schedule I, the budget schedules are critical in a chapter 13 case.
In addition to obtaining your credit report, you will need the following documents: Tax returns for the past four years. Paystubs or other proof of income for the last six months before filing. Bank account statements from the past 36 months. Recent mortgage statement(s) and real estate tax bills (if applicable)

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