Basic Tips In Filing For Bankruptcy
You may have been told that since a bankruptcy will rid you of your credit card debt you might as well max out your American Express and purchase all of those widgets for which you have been longing. The opposite is true. A Bankruptcy Court will dismiss your claim if they perceive you as taking advantage of the system. To make sure the bankruptcy Court gives you the benefit of the doubt, you should refrain from using your credit cards for 90 days prior to filing for bankruptcy.
It is understandable that most people who are filing for bankruptcy are doing so because they have little or no money to pay their debts. It is, however, a great idea to make some payments at least to some of your creditors with any disposable income you may have. It will help your cause with the Bankruptcy Court when they perceive that you are willing and would make payments to all your creditors if you had the means.
One of the most important things you can do prior to filing for bankruptcy is to collect certain types of information. This will save you time and stress and help your attorney expeditiously file your petition. You will want to document or gather the following: (1) Mortgage(s) – Determine what your current appraisal value is as well as your pay-off amount, determine the mortgagors information, and determine what your monthly payments are and how many payments you are behind, if applicable; (2) Vehicle(s) – Ascertain the market value of all your vehicles, and if financed or leased, collect the lenders information and the pay-off amount; (3) Personal Property – make a list and place a value on your collective furniture and furnishings, collective clothing and apparel, collective jewelry, cash on hand, balance in checking and savings accounts, and any pensions plans; (4) List of Unsecured Creditors – Collect the addresses of all your unsecured creditors (i.e., credit cards, medical bills, personal loans, cash advances) and how much you owe; (5) Pay Stubs – - Obtain pay stubs or proof of income for the 3 months prior to filing.
Check your records to make sure that all of your tax returns have been filed with the IRS. Your bankruptcy petition will be dismissed if you have not filed your taxes. In fact, the Bankruptcy Court, as is the case in Los Angeles, may require you to have copies your returns for the two years prior to filing. It is also a great idea to give your attorney copies of your tax returns so that he/she can ensure that all of your petition information is as accurate as possible. Remember, if you don’t have your tax returns the IRS can mail copies to you.
A complete accounting of all your expenditures can be extremely helpful in allowing the Bankruptcy Court to get a better sense of your financial pressure. Using your bank statements, your credit card statements, and your memory make a list of all of your regular monthly expenditures. Remember to include expenditures on items such as food, clothing, laundry, medications, taxes, alimony, school expenses, and personal care items.
Retaining a specialist is always the best form, especially when dealing with complex matters. Just as it would be difficult to obtain a favorable result if you performed a complex medical procedure on yourself, it will likewise be difficult to obtain a favorable result if you try to file a bankruptcy yourself. Therefore, hire a qualified bankruptcy attorney to help you file and handle all the work for you.
Chapter 7 Los Angeles Bankruptcy Attorney – Law Offices of Alon Darvish
