Basic Tips In Filing For Bankruptcy

There is a rumor that if one is going to file for bankruptcy they might as well make credit card purchases on high priced items in Beverly Hills or Los Angeles because the debt will all be discharged anyway. On the contrary, the Bankruptcy court is typically unsympathetic to individuals whom they believe have charged up their credit cards prior to filing for bankruptcy. Therefore, to have the Bankruptcy Court give you the benefit of the doubt, you need to discontinue using your credit cards for 90 days prior to filing your petition.

You are considering filing for bankruptcy because you do not have enough income to pay your creditors. It is best practice, however, to continue to pay at least one or two of your creditors before you file for bankruptcy. You want the Bankruptcy Court not only to see how you have no other alternative than to file, but you also want the Bankruptcy Court to see that you are the type of citizen who would make all of your payments if you had the means to do so.

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.

Be sure you have all of your taxes filed with the IRS. The Bankruptcy court will not allow you to discharge your debt if taxes are left unfiled. Furthermore, as is the case in Los Angeles, some Bankruptcy Courts will require you to furnish your returns from the past two years. It is also a good idea to also provide those returns to your attorney to ensure accuracy when he/she drafts your petition. If you do not have copies of your tax returns, then contact your regional IRS office and have them mail you copies for a nominal fee.

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.

A bankruptcy petition is commonly over 60 pages in length and peppered with complex legal terms. Save yourself the countless hours of research, numerous amendments with the Bankruptcy Court, and possible dismissal of your claim. Retain a qualified bankruptcy attorney to handle the work for you.

Bankruptcy Attorney Los Angeles – Law Offices of Alon Darvish