Preparing to File Bankruptcy
Take a file folder and put a statement from every creditor that you owe in it. If you don’t receive a monthly statement from the creditor, put the following information on a sheet of paper about the debt and place it in your file: (Please make sure you list all of your outstanding debts - get a copy of your credit report so you don't miss any!)
Name and complete mailing address of who you owe;
Your account number (if applicable);
The name of who owes the debt (husband, wife or both);
The total amount you owe this creditor;
How much your monthly payments are;
The date you originally went into debt with this creditor.
(If you can’t remember the exact date, just an approximate year [i.e., 2001,
2002, 2003, etc.] will do);
If the debt is for a credit card, record the last date you
charged on this credit card. If you charged less than 90 days ago, you need
to write down the amount you charged and the reason for the purchase.)
In the same file folder, also put in the following documents:
Your current paycheck stubs;
If you are unemployed, include copies of documents showing
any income you receive(d) from unemployment, worker’s compensation, child
support, SSI, social security, retirement, estate, etc.
Mortgage and deed if you own or are purchasing a home or
other real property (i.e., land, apartment complex, etc.);
Copies of your car, boat, motorcycle, mobile home or other
titles to motor vehicles;
Copies of your tax returns;
Copies of any court proceedings filed against you
When you have put together your file, you will have most of the information needed to file a bankruptcy petition.
A bankruptcy petition includes such documents as: Voluntary Petition, Summary of Schedules, actual Schedules, Forms, Statement of Intentions, Creditor’s Matrix, etc. Each Schedule and Form in your bankruptcy petition relates to different items that must be filled out properly. Normally people choose to hire an attorney to prepare their bankruptcy petition, but some people hire bankruptcy petition preparers, and others complete their own petition and file "pro se".
Note: Unless you are familiar with the bankruptcy law, the average consumer cannot properly complete a bankruptcy petition. Besides, it is dangerous to attempt to do so. If you don’t know the difference between real property and personal property for instance, or the legal codes for exemption allowances (Schedule C) you could lose everything you own and put yourself in a living condition much worse than you are in right now. Many debtors have told me horror stories about what happened when they went to the library, got a book about bankruptcy and then filled out their own forms. If you decide to take this option though, I urge you to have someone skilled in bankruptcy law review your forms before you file them.
If you decide to hire an attorney, try to find someone who specializes in the field of bankruptcy. In other words, your best choice for an attorney is one who does nothing else but specializes in bankruptcy law exclusively. You will probably also find bankruptcy attorneys that also do divorce, wills, probate, and DUI; but if given a choice between the two — I urge you to choose the attorney who specializes in debtor bankruptcy.
Calling around to different attorney offices and asking them what they charge to file a bankruptcy is NOT the most efficient method of locating a good bankruptcy attorney. Attorneys who advertise cheap prices for filing bankruptcy petitions in your daily newspaper, often do not file all the schedules and forms at one time (which is perfectly legal) and will charge you additional money to file the rest of the petition within the 20-30 day allowance. After being “nickel-and-dimed” to death, you normally pay more money to this attorney than if you just hired a higher-priced attorney in the first place.