Has anyone filed Bankruptcy?
i just recently met with a attorney to file bankruptcy. I will be filing bankruptcy in January (that’s when my lawyer bills will be paid off). My attorney said that when i file, I will need 6 months of pay stubs, 6 months of bank statements, registration form and the last 4 taxes filed.
My question is, when they look at your bank statements, what are they looking for?
Until recently, I’ve been making purchases (not much), but I have stopped now. Will they deny me the bankruptcy because of the purchases?
Also, if I want to purchase something, should I just pay in cash?
Posted September 6th, 2010 in When To File Bankruptcy. Tagged: bank statements, filing bankruptcy, lawyer, pay stubs, registration form.
They look at bank statements mainly for balance but also to see patterns of income and expenses. For instance, they don’t want you to be using credit cards for large purchases within x months of your filing. If they determine there is something fishy, they can deny your application, exclude those things from your protected debts, or even charge you with a fraudulent application. But why are you asking us? Your attorney should advise you on all this so you don’t get into trouble.
My question to you is: why are you filing anyway? If it is primarily or exclusively due to credit card debt, it could be a mistake to file. Sure it will protect you from nasty phone calls, etc. But did you know that a bankruptcy stays on your credit report for 10 years? There are other solutions such as debt consolidation, negotiating with your card companies, and if you just do NOTHING, there is a good chance you will never even be sued by the credit card banks. And defaults on cards come off your report after only 7 years by law. Of course, with a bankruptcy you can also start rebuilding your credit almost immediately. Anyway… you have an attorney. Please discuss this thoroughly with him/her before proceeding!
September 6th, 2010 at 2:17 pm