| The new bankruptcy law has increased the need for attorney review of documents. Before, I could take your word on many ordinary things, but now I am held personally responsible for the accuracy of the information filed. That means we will spend more time going over more material, but in the end, the effort is well worth it. Below is a list of what I would need to see in order to prepare your Chapter 7 filing papers:
1. All three major credit reports (Experian, Equifax, TransUnion), which may be obtained for free annually at WWW.ANNUALCREDITREPORT.COM, or by calling toll-free at 877/322-8228. (Note: some clients do file with less than all three credit reports; some clients have filed without using any credit reports. I would like to have at least one, and I prefer to have them all.)
2. Recent statements from any creditors NOT on the credit reports.
3. Paychecks for the past 6 months, plus any other evidence of income received that far back. This information is crucial in Chapter 7 now. If you are self-employed, I would need to see your ledger (if you keep one) and bank statements (below) for the 6 months before filing.
4. Bank statements for the past 6 months. You may have to order them, but they are essential.
5. IRS returns for the past two years. If unavailable, you may use transcripts of the returns. These are easily obtained by calling the IRS at 800/829-1040 and following the prompts. They promise delivery by mail within 10-15 days, and it's absolutely free.
6. Property tax statements for all real estate, plus anything else showing its value (like a recent closing statement, appraisal, etc.).
7. Papers on any cash value life insurance; any judgments or divorce decrees from the past 4 years.
8. Credit counseling certificate. This is a new rule. To file Chapter 7, you must attach proof that credit counseling about your debts was received before filing. To find a list of providers, go to www.usdoj.gov/ust/ and click on "Credit Counseling and Debtor Education" under "Bankruptcy Reform". "Credit Counseling" is what you need now (NOT debtor education, which comes later), and Austin is located in the Western District of Texas.
Most of my clients use InCharge Education at WWW.PERSONALFINANCEEDUCATION.COM (866-729-0049) for $30.00. I know of none cheaper. If you don't have computer access, try Consumer Credit Counseling Service of Atlanta over the phone for $50.00, 866-672-2227. (There is a second course to be taken before the case is over, but I recommend only signing up for the credit counseling at first.)
Credit counseling is not a terrible idea, but whether it makes any difference or not is unclear. So far, it appears that few are signing up for payment plans. That said, it will cost a few bucks, and you may learn something useful. Once the course is completed, your decision to proceed with Chapter 7 is allowed. (Counseling is received over the telephone or the internet in most cases, takes about an hour and a half, and payment is generally made by allowing a withdrawal from your bank account or mailing in a money order.)
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