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 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.
If you want to make sure your bankruptcy petition gets filed quickly and with as little stress as possible, then there is information that you can gather for you attorney prior to drafting 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) 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; (4) Pay Stubs - - Obtain pay stubs or proof of income for the 3 months prior to filing.
Make sure you have filed all your taxes with the Internal Revenue Service. The Bankruptcy Court will require that you be current on your taxes and usually, as is the case in Los Angeles courts, will require you to furnish your returns from the past two years. In addition, it is a tremendous help for your attorney to have your tax returns when drafting your petition to ensure all of your numbers are consistent. Do not worry if you do not have a copy of your tax returns because you can get a copy mailed to you from the IRS in just a couple weeks.
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.
When you are dealing with complex matters that can affect you for years to come it is a great idea to retain a specialist. Since you are reading this article it is likely that you are not bankruptcy savvy. Therefore, hire a qualified bankruptcy attorney to help you file and save yourself the stress of drafting a petition and the stress of having your petition dismissed for failing to provide correct information. - 29866
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.
If you want to make sure your bankruptcy petition gets filed quickly and with as little stress as possible, then there is information that you can gather for you attorney prior to drafting 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) 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; (4) Pay Stubs - - Obtain pay stubs or proof of income for the 3 months prior to filing.
Make sure you have filed all your taxes with the Internal Revenue Service. The Bankruptcy Court will require that you be current on your taxes and usually, as is the case in Los Angeles courts, will require you to furnish your returns from the past two years. In addition, it is a tremendous help for your attorney to have your tax returns when drafting your petition to ensure all of your numbers are consistent. Do not worry if you do not have a copy of your tax returns because you can get a copy mailed to you from the IRS in just a couple weeks.
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.
When you are dealing with complex matters that can affect you for years to come it is a great idea to retain a specialist. Since you are reading this article it is likely that you are not bankruptcy savvy. Therefore, hire a qualified bankruptcy attorney to help you file and save yourself the stress of drafting a petition and the stress of having your petition dismissed for failing to provide correct information. - 29866
