THINK 90 DAYS
Generally, think in terms of at least 90 days before you plan to file the initial bankruptcy petition. This allows you time to retain and talk with an attorney about the facts of your bankruptcy case and to prepare your documents. Additionally, you can make payments to the attorney instead of paying the fees in one lump sum. STOP USING YOUR CREDIT CARDS.
If you borrow money with the intent of having the debt discharged, then the debt is not dischargeable. You should consult an attorney before incurring any additional debt. This includes using your credit cards for “luxury goods and entertainment”. DON’T MAKE ANY GIFTS OR PROPERTY TRANSFERS. Transferring property, car titles, etc., on the eve of bankruptcy can be considered a fraudulent conveyance, which could disqualify you for bankruptcy protection and subject you to criminal prosecution. CONSIDER WHICH DEBTS TO PAY. Some debts, such as utilities, car insurance, etc., must be paid currently, but paying large sums to credit card accounts that will be discharged is likely a waste of money.
ASSEMBLE IMPORTANT DOCUMENTS.
Put copies of documents that would be helpful in your bankruptcy into a folder or a box. A list of what I need to see during our first meeting:
- Pay check stubs for all employment income during the past six months.
- Your state, federal and property tax returns for the past two calendar years.
- Statements for all of your bank accounts for the past six months.
- The most recent statements for your mortgages, home equity loans and automobile loans.
- A list of all your debts along with a stack of your most recently received bills for each one.
- A copy of the deed to your home or other real estate.
- Paperwork on any legal action which is currently pending or which ended in the past two years, including any divorce decrees.
- A credit counseling certificate from a qualified agency. Arizona Court Approved List
- Your credit report. The best place to get such a report is www.annualcreditreport.com
- Completed bankruptcy packet. Bankruptcy packet.
CALM DOWN.
You’re not the first person to declare bankruptcy and when you prepare for it, and use an attorney, it is generally a very smooth process.
Elana C. Sears
Attorney at Law The Law Offices of E.C. Sears, Pllc.
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Geez, everytime I see blogs this good I just want mine to be there already!
Great work.