A Debtor’s Guide to Bankruptcies
We all know people who claim to be legal experts but have no formal training. If such a person has told you that you should run up your credit cards before you file for bankruptcy because all your debt will be discharged anyway, please disregard their advice. If the Bankruptcy Court senses that you are acting in bad faith and taking advantage of the system then they will dismiss your claim. Therefore, to get the Bankruptcy Court to stay on your side and give you the benefit of the doubt, you need to make sure you have not used your credits cards within 90 days prior to filing for bankruptcy.
You wouldn’t be contemplating bankruptcy if you had sufficient income to pay all of your creditors, but you should continue to make at least some payments to some of your creditors. This will help your cause by proving to the bankruptcy court that you are trying your best to make your payments.
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.
In order to demonstrate to the Bankruptcy Court that a Chapter 7 is necessary for you, it is important to list any and all of your monthly expenditures. Make the most accurate monthly estimation of your expenditures, including the following: Mortgage or Rent, Utilities, Insurance, Food, Clothing, Laundry, Transportation, Medical, Taxes, Alimony, School Expenses, Personal Care Items, and any other regular monthly expense.
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.
Law Offices of Alon Darvish provides bankruptcy services to many consumers. If you are interested in filing for bankruptcy, contact his office at (800)890-7780.
