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 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.

Sit down for a few minutes with your bank or credit card statements and add up all of your regular monthly expenses. You want to make sure you include all of your expenditures so the Bankruptcy Court can get an accurate idea of your financial hardship. You of course have the standard expenditures like rent and transportation, but there are also other noteworthy expenditures that many people overlook, such as food, clothing, insurance, laundry, medical, alimony, school expenses, and personal care items.

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.

Chapter 7 Los Angeles Bankruptcy Attorney – Law Offices of Alon Darvish

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