Checklist Before Filing a Bankruptcy Petition in Henderson, NV

Most of our lives would be simpler if we were suddenly relieved of burdensome debts like credit cards, medical bills, and more. That’s just what happens if you file a petition for bankruptcy in Henderson that results in a debt discharge. Debtors are also protected from creditors while their cases are pending by the automatic stay. These benefits could be invaluable to someone on the precipice of major financial issues stemming from debt. But that doesn’t mean that you can slap together a few documents, call it a bankruptcy petition, and file it and expect your case to go smoothly. There are several steps and requirements for bankruptcy debtors seeking debt relief. Below is a checklist of tasks and items you should complete before filing for either chapter 7 bankruptcy or chapter 13 bankruptcy. To discuss them and your potential case with an experienced Henderson bankruptcy lawyer, call 702-899-3328.

Complete Your First Credit Counseling Course

Bankruptcy debtors are required to complete educational courses to have their debts cleared. The first, a credit counseling course, needs to be finished before a petition for bankruptcy is filed, and the second is a debtor education course, which needs to be finished within 60 days of the 341 Meeting of Creditors. Because the first course certificate is valid for 180 days, or 6 months, you can take it early on to take an item off your task list closer to filing. Both chapter 7 and chapter 13 debtors must complete these courses, and pay a nominal fee as tuition. Set aside about 2 hours to complete the first course, although you will likely finish faster than that.

Have Your Forms of Identification Ready

Having a driver’s license and social security card might seem like no-brainer items on a checklist if you have them, but if you don’t, now is the time to submit requests for them. You can use other forms of identification, but the examples used are common because they are a photo form of identification and a form of identification with the debtor’s full social security number. If you don’t have a driver’s license, you can use another government-issued photo ID, such as a passport or a state identification card. Some debtors use their original W-2 forms if they don’t have their Social Security cards readily available.

Start Gathering the Rest of Your Documents

The list of documents you will need to draft your bankruptcy petition may feel endless. But it’s important to actually produce the petition using documentation, as the trustee may ask to see it to verify your eligibility for debt discharge. Your pay stubs or other proof of income from the past 6 months is one of the most important types of documentation you will need to collect. You will also need mortgage and rent documents, account statements, divorce documents, and a litany of other documents based on your personal situation. Your attorney can provide you with a comprehensive list of the documents you will need to provide for them to create your bankruptcy petition.

Check Your Credit Card Spending

Credit card debt is unsecured debt that is fairly simple to wipe away in chapter 7 bankruptcy, and doesn’t need to be paid in full in chapter 13 bankruptcy. To keep debtors from taking advantage, there are limitations on how much a debtor can spend on non-essential goods and services on their credit cards while preparing for bankruptcy. There are two categories of credit card spending a bankruptcy debtor should review before filing: cash advances and luxury spending. Cash advances can raise suspicions for the trustee because the cash could have been spent on anything, or the debtor could be hoarding non-exempt cash to protect it from bankruptcy proceedings. Don’t exceed $1,250 in cash advances on credit cards within 70 days of filing for bankruptcy. The second category, luxury spending, applies to expenditures like name-brand clothing and accessories, restaurant meals, vacations, etc. A debtor shouldn’t exceed $900 in luxury purchases within 90 days of filing for bankruptcy. Any spending in excess of these limits could be excluded from the debt discharge.

Start Your Household Inventory

The household inventory is a task you can start at any point during your bankruptcy preparations to reduce your workload closer to filing. The bankruptcy trustee will want to see a record of every item you own. Some, like your house or car, may have a title or deed that you can present to show ownership. Items around your house can be listed more informally in the household inventory. You will also need to estimate the market value of these items. You should confirm with your attorney which exemptions you can use to protect your possessions before submitting a household inventory.

Confirm Bankruptcy Won’t Interfere With Your Future Plans

Bankruptcy trustees don’t just look back when a debtor files for bankruptcy protection- they will continue assessing a debtor’s situation for several months or even years after discharge. If you have certain plans for the future, filing for bankruptcy could create obstacles that could warrant a different method of debt relief. For example, bankruptcy debtors won’t qualify for home loans for a certain number of years after filing or discharge. You may also expect to receive an inheritance or personal injury settlement that might be taken by the trustee if you file for bankruptcy first. You should discuss your situation with a bankruptcy attorney to determine which potential issues could be relevant in your case.

Review Prior Bankruptcy Filings

There are no rules about how many times a person can declare bankruptcy, but there are limitations regarding how frequently a person can file. These limitations vary based on the first type of bankruptcy the debtor filed, as well as the second type of bankruptcy the debtor wishes to file. If you have never declared bankruptcy before, you can skip this step. But if you have, make sure you have satisfied the applicable waiting period before filing your subsequent petition for bankruptcy.

Chapter 7 to Chapter 7: 8 years

Chapter 7 to Chapter 13: 4 years

Chapter 13 to Chapter 13: 2 years

Chapter 13 to Chapter 7: 6 years

Retain an Experienced Henderson Bankruptcy Lawyer to Make Sure Your Case Goes Smoothly

Bankruptcy debtors aren’t required to retain representation, and many proceed acting as their own attorneys. But unsurprisingly, these debtors have lower success rates than those who file with reputable bankruptcy counsel. Bankruptcy is not an easy process, and shouldering the responsibilities of it alone only makes it more difficult. Many represent themselves because they assume that they will not be able to afford to hire an attorney given their present financial situation. But our firm offers flexible post-filing payment options so you can decide if you can afford an attorney based on how your situation will be after declaring bankruptcy. This could be a huge difference if you have a wage garnishment, spend significant amounts on late and interest fees, etc. You can explore the possibility of retaining an experienced Henderson bankruptcy lawyer with no risk or obligation. Schedule your free consultation with our firm today by calling 702-899-3328.