Tag: bankruptcy filing

documents to look for to prepare for a bankruptcy filing

California Bankruptcy Statistics

As Southern Californians deal with the fallout from the mortgage crisis, many homeowners and families have found themselves saddled with debt they cannot afford. As a result of this unfortunate situation, individuals are increasingly turning to bankruptcy to get their financial lives back on track. A majority of individuals file a Chapter 7 bankruptcy to help wipe out most, if not all, of their unsecured debts, including credit card bills, medical bills and judgments. For those individuals who do not qualify for a Chapter 7 bankruptcy, a Chapter 13 bankruptcy is beneficial where the debtor has significant property and/or wants to eliminate a second mortgage on the residence.

At the McCandless Law Firm, we are committed to providing personalized service and our team of professionals will help you obtain a fresh start for you and your family. Contact us today to arrange a free office consultation. Documents to Collect Before filing, the following documents will be necessary to complete your bankruptcy petition:

1. Copy of each debtor’s social security card and bring original with you to your hearing

2. Copy of each debtor’s drivers’ license and bring original with you to the hearing

3. Documentation of any wage garnishments, wage assignments or other legal actions, including lawsuits

4. Copy of recent real estate appraisal, if any

5. Copy of most recent real estate tax bill

6. Pay stubs for each debtor for prior 6 months

7. Documentation of other income i.e. child support, social security, pension, disability, unemployment for prior 6 months

8. Copies of federal and state tax returns complete with all schedules including W-2’s for the prior 4 years

9. Copies of checking account, savings account, and money market account bank statements complete with copies of canceled checks for the prior 6 months (you will be asked to supplement this at a later date)

10. Copy of any life insurance policies except ones through employment including a statement regarding the current cash value

11. Copy of most recent brokerage account statement

12. Copy of most recent individual retirement account statement

13. Copy of most recent pension/retirement account statement

14. Copy of most recent 401K, 401B or 401E account statement

15. Copy of any contract for deed in which you are a buyer or seller

16. Copy of divorce decrees and/or domestic support obligation orders (child support or alimony)

Debtor Laws and complete disclosure in Bankruptcy petition

Once you have decided to file for bankruptcy, you must be truthful about your financial situation in order to take advantage of bankruptcy protections.  While this does not pose a problem for a majority of individuals, it is often unwise for a debtor undergoing a bankruptcy to seek to secrete or hide assets.

When you file bankruptcy, expect that the trustee will perform a thorough investigation of your assets and your financial transactions for a year or more prior to the bankruptcy.  If the trustee determines that you have sold or given away valuable items before filing for bankruptcy protection, this can cause your case to be dismissed.  If this happens, you will have to re-file and may not benefit from the protection afforded by the automatic stay which means that creditors will be free to pursue their collection attempts.  Additionally, debtors who attempt to hide assets may be guilty of fraud, accordingly, it is important to disclose any and all financial activities in your initial petition.

Despite innocent intentions, certain actions may require that you to have to wait in order to file for bankruptcy in order to avoid dismissal.  If you have recently sold or given away valuable property, you may have to wait for a year before you file, which is why it is important that you speak with a reputable bankruptcy attorney if you are considering filing for bankruptcy.  The McCandless Law Firm offers legal advice for anyone who may be considering filing for bankruptcy, contact us today to set up a free, no-obligation case evaluation.