Preparing for Bankruptcy

Serious financial burdens can be very difficult for you to handle and may limit your ability to function in society. If you are struggling to pay your bills and are being hounded by creditors, you may not know where to turn in your time of need. People who are having trouble make ends meet may have suffered the loss of a job, divorce, loss of spousal support, or a myriad of other events that can make it difficult to make timely payments on your debts.

At the Harmon Law Office, we understand how difficult financial troubles can be and the effect they can have on you and your family. Persons who are unable to make regular payments on their mortgage, auto loans, credit cards, and other debts may consider filing for bankruptcy to gain control of their finances and free themselves from their financial burdens. Before filing for an Arizona bankruptcy, it is important to properly organize your financial documents and be prepared for the process.

Bankruptcy Preparation

If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, it is important to prepare your financial documents for the application process. You will be asked to list any and all debts you may have, as well as any assets that should be considered in the legal process. Debts may include:

• Mortgage loans
• Auto loans
• Credit cards
• Tax liabilities
• Money owed for child support
• Money owed for alimony
• Medical bills
• Loans borrowed for home repairs, retail purchases, and other reasons

Once your list of debts has been completed, it is important to have a list of any and all assets that may be surrendered or exempt from the bankruptcy proceedings. Common assets include:

• Homes or property in your name
• Automobiles
• Money in savings and checking accounts
• Stocks, bonds, and other investments
• Money in 401k and retirement plans

While it is natural to be concerned about your assets when considering bankruptcy, we at the Harmon Law Office wish to remind you that assets do not always have to be liquidated to pay creditors during the proceedings of an Arizona bankruptcy. In fact, individuals who file for Chapter 13 bankruptcy may find that they are able to keep important assets like their homes and automobiles free from the proceedings and may even be able to save them from foreclosure and repossession by filing for legal protection.

What Not to Do Prior to Bankruptcy

If you are facing serious financial trouble, you may not know what steps to take or where to turn when trouble arises. The attorneys at the Harmon Law Office are happy to help guide you through the process of preparing for an Arizona bankruptcy and want to make sure you do not make the following common mistakes:

• Attempting to hide assets from the court
• Omitting debts or assets from the bankruptcy application
• Switching property or assets to someone else's name
• Concealing income or saved money from the court
• Borrowing money prior to filing for bankruptcy
• Making large purchases before bankruptcy
• Overspending on purpose prior to filing for bankruptcy

Although you may be able to discharge some of your debts by filing for Chapter 7 bankruptcy, it is important to note that the court will not be forgiving if an individual purposely over-spends knowing he or she will not repay his or her debts. Bankruptcy is designed to help persons who are truly in trouble, and any suspicious activity prior to filing may result in the rejection of your application.

If you are considering filing for an Arizona bankruptcy, the attorneys of the Harmon Law Office are here to help you with the process. Contact us at 480-829-0494 for a free evaluation of your financial situation.