The documentation we request with your application helps us understand your current financial position and determine if a compromise is the best way to resolve the debt.
Verification of Income
Provide complete copies of the two most recent paystubs or earnings statements and the most recent statements from all other sources of income, such as:
- Pensions, disability, and social security
- Rental income
- Current profit and loss statements if you are self-employed or an active business
If you cannot obtain pay stubs from your employer, we will accept recent W-2 or 1099’s.
We review all income to determine funds you have available to pay expenses and debts. You must provide information about your financial situation that includes your gross monthly income and average household expenses.
The household includes you and all other adults who help pay monthly expenses such as, rent, utilities, insurance, and food. See the Compromise Questionnaire and Application or Form C58B - Business Financial Statement for a complete list of what to include.
This information is necessary for us to accurately evaluate your offer. We may also use this to determine your share of the total household expenses.
Verification of Assets
We review all assets you own to determine if you can liquidate any of them to pay your debt. We require complete copies of your three most recent bank statements and the most recent copy of statements for other assets, such as:
- Recent appraisals or property tax bills
- Vehicles or business equipment
- Notes receivable
Verification of Liabilities
We review all liabilities to determine your ability to pay by looking at other required financial obligations against your income. We require complete copies of your three most recent billing statements, such as:
- Statements from lenders showing payments, balances, and recent activity
- Delinquent federal, state, or local tax liabilities
Verification of Household Expenses
You are allowed the standard amount based on the federal and state expense guidelines for housing and utilities. You must show which member of your household pays each expense.
If the amount claimed is more than the guidelines allow, we will need to see complete copies of the most recent documentation to verify they are necessary living expenses.
Expenses include:
- Utility bills
- Insurance bills
- Phone bills
- Vehicle, gas, or parking bills
Other Documentation
You may need to provide additional documents to support your request or allow us to speak to someone helping you. These documents may include:
- A Power of Attorney form if you would like another person, such as an attorney or CPA, to represent you, if you do not have one on file
- Supporting documentation for any additional circumstances or other expense that may prevent you from paying your debt in full, such as any medical expenses, child support, or court ordered payments
We may ask for more documents we believe are necessary. We may verify any information you provide through our records or third-party contacts.
