Bankruptcy is a planning process which requires the disclosure of any and all documents and other information relating to your financial situation. Here is a checklist of documents and other information that I have put together to assist you in getting organized. I hope that you find it helpful. BANKRUPTCY CHECKLIST [   ]       Drivers License & Social Security Card [   ]       Date and Case Number of any previous Bankruptcy Discharge(s) [   ]       Credit Report (annualcreditreport.com) – Experian is the easiest to read [   ]       Certificate of Credit Counseling (I will sign you up for a class before you file) [   ]       Real Estate Deed* & Property Tax Statement (* copy of 1st recorded page) & BPO, Market Analysis or Appraisal of Fair Market Value (FMV)…

1.       Divorce. Divorce has a devastating impact on most people. It is one of the factors that led to my own bankruptcy. In my case, I had to assume the entire income tax liability for the year that I got divorced. I also had to assume all of the credit card and overdraft debt that my ex had accumulated. The financial pressure was unbelievable – then I lost my job. I had to try to start over dragging an incredible debt load from my past life – with no job. I finally came to my senses, found a good lawyer and filed for Chapter 7 bankruptcy. In my practice today, I see the strain on everyone’s budget brought on by divorce. You have to try…

I get this question a lot. My answer is that most people in your day to day life won’t know that you filed for bankruptcy unless you tell them. The only people that get notice of your bankruptcy filing are your creditors. If you don’t owe anybody money – they won’t get notice of your filing. And, most creditors are nationally based banks like Citicorp, Bank of America and HSBC. These big companies aren’t going to broadcast your situation – they don’t even send a representative to your 341 hearing. When I get this question, I always ask clients if they have ever heard of PACER. Every one says no. PACER is the federal website where your bankruptcy filing will be listed – but nobody…

1.         No health insurance or inadequate health insurance coverage. Medical and doctor bills are a huge factor in most bankruptcies. 2.         Dependence on credit cards for everything. If you use your credit cards to get cash advances to make minimum payments on other credit cards you are headed for disaster.  Credit card debt is the number one factor in every bankruptcy. Making minimum payments on credit cards and maxing out your credit cards are additional warning signs of insolvency. 3.         Over-using home equity loans. Before you use your home equity line of credit, make sure that you can afford to make the payments. Remember too, that your home equity line is secured by a mortgage – if you skip the payments, the bank will foreclose…

In real simple terms – how about telling them the truth? Job loss, cut backs, health problems, divorce, overspending, not budgeting – the list goes on and on. Reinforce the concept that the bankruptcy laws are Constitutionally mandated to help good people who have fallen on hard times. Just because you file for bankruptcy does not mean that you are a bad person – bad things can happen to good people. The bankruptcy laws are designed to help you get a fresh start so that you can provide for the financial needs of your family and for their financial security. If you are living beyond your means, maybe it’s time to get real about your life with your kids. We all learn by example. This…