My Articles OnlineShare your article to the world

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.

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.

Bankruptcy petitions require mounds of information and financial data. Thus you can reduce your stress and help your attorney file your claim quickly by doing some homework. 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

Share to the world