November 19, 2009 by Alon Darvish
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.
It is understandable that most people who are filing for bankruptcy are doing so because they have little or no money to pay their debts. It is, however, a great idea to make some payments at least to some of your creditors with any disposable income you may have. It will help your cause with the Bankruptcy Court when they perceive that you are willing and would make payments to all your creditors if you had the means.
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.
Contact Law Offices of Alon Darvish if you are attempting to find a Los Angeles Bankruptcy Attorney
