How to Prepare to File for a Chapter 7 Bankruptcy

How to Prepare to File for a Chapter 7 Bankruptcy

The bankruptcy process in California can yield many benefits to filers of a Chapter 7 bankruptcy. The added complexity of the process since the bankruptcy code overhaul in 2005, however, now requires some advance planning and preparation in order to attain optimal results. In a Chapter 7 filing that outcome would be defined in the dismissal of all unsecured debt. The following are the necessary steps to prepare for a Chapter 7 Bankruptcy:

1) Make the decision to work with an experienced bankruptcy attorney There are filers who try to get through a Chapter 7 Bankruptcy filing on their own, but the process almost always yields the best results when an experienced bankruptcy attorney is doing the work. Determining whether a bankruptcy filing is the right choice, deciding on which type of bankruptcy to file, submission of all required documents, and executing the process to get the best financial outcome are just a few of the benefits of hiring an knowledgeable bankruptcy attorney. Additionally, be sure to work with an attorney that is well-versed with the bankruptcy protocols in the jurisdiction that the bankruptcy will be filed.

2) Get your dates right There are many instances in a bankruptcy filing where the date of an event is extremely important. These events can include the payoff of a loan from a family member or relative, the transfer of assets, and the purchase date of an automobile. Getting these dates wrong can result in the courts going after repayments, reversing asset transfers, and missing opportunities provided in the bankruptcy code.

3) Documentation In addition to the paperwork required to process a Chapter 7 Bankruptcy, filers must provide detailed financial documentation on all aspects of their lives. This documentation includes verification of income, a list of liabilities, and a detailed list of assets. Valuation of assets will play a large role in determining whether Chapter 7 or Chapter 13 will be most advantageous so be sure to provide your attorney a complete list with accurate values.

4) Credit Counseling California requires credit counseling prior to the completion of the bankruptcy process. Plan on taking some time with a credit counseling service, which must be approved by the court.

Advance planning for a Chapter 7 bankruptcy with a qualified bankruptcy attorney will most always provide the best results. It's a great chance to get a fresh start, and the time spent in preparation will be well worth it.

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