Law Offices of Paul R. Bartleson

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Paul R. Bartleson, Attorney at Law

PRE-FILING BANKRUPTCY

PRIOR TO FILING BANKRUPTCY:

BANKRUPTCY ALTERNATIVES

The first question we ask you is whether you have investigated other alternatives to keep you out of the Bankruptcy Court. First, examine your budget and find out where you are spending your money. Sometimes, debt consolidation through Consumer Credit Agencies can help.. You can also call your credit card companies or other creditors and negotiate lower payments or interest rates. Frequently, however, that doesn’t work, because some creditors can be unreasonable and won’t back off. If you have a tax problem with the IRS or Franchise Tax Board, you can try an offer in compromise. If you haven’t filed tax returns, get them filed. Consult a Tax Professional such as a CPA, Enrolled Agent, or Tax Attorney. In order to be eligible for Bankruptcy, you are required to have filed your last four years of tax returns. You are required by law anyway to file your tax returns; the failure to do so results in late filing fees, penalties, interest, and can be punished as a crime. Filing Bankruptcy doesn’t dispense with the requirement to file your return, so just go ahead and do it.

The second question you should address is, “What does the future hold for you? Is the present situation temporary, or do you expect it to get better in the future? If you don’t have a realistic plan for paying off your debts in the near future, you are kidding yourself. Many people act with the best intentions and try in vain to pay their debts, only to wake up years later and come to the sad realization that their life has gotten worse, not better, and that they have just been throwing away money at their debts that they could have been using to rebuild their lives.

If you are faced with a lawsuit, we will review to see if you have any defenses. We will also tell you if bankruptcy won't help you.

ELIGIBILITY:

1. Tax Returns/Proof of Income
The Bankruptcy Reform Act of 2005 added several requirements in order for you to be eligible to file Bankruptcy. You must have filed your tax returns for the four years preceding your petition. You also have to provide proof of income for a six month period prior to your Bankruptcy.

2. The “Means Test”
Consumer debtors have to go through a “means test” designed by Congress to weed out people who are abusing the system. The formula uses actual numbers regarding your income and expenses, with artificial standards for expenses. Information that you provide is entered into an artificial formula, and if your income exceeds the mean income for the District in which you file, and you are able to pay a portion of the debt back, you maybe ineligible for Chapter 7. You are entitled to deduct certain things such as secured debt payments on a house or car, taxes, medical expenses, spousal and child support etc. within certain limitations. Although the means test disqualifies some from a Chapter 7 filing, as a practical matter experience has shown that the “means test” has not affected the vast majority of filers. Most people wanting to file a Chapter 7 are still eligible.

3. Education Requirements:
The Bankruptcy Code now also requires that you complete two educational requirements from a credit counseling agency approved by the Department of Justice. 1) Prior to filing, you must obtain a “credit counseling certificate;” which consists of a review of your current financial situation. 2) Before the discharge is entered you must complete a “debtor education” course that provides you with more insight on how to handle your finances. The purpose of these two courses is to make you examine your finances and make sure that you have done everything to avoid filing bankruptcy, and second, that you have some minimal financial skills so that once you are completed, you will never have to go through the process again. Once we accept your case, we will ask you to fill out a questionnaire and return it to our offices to begin.

To Learn More About the Bankruptcy Process, Please Go to Bankruptcy 101>>>

Law Offices of Paul R. Bartleson
1007 7th Street, Suite 202,

Sacramento, CA 95814

916.447.6640

E-mail Us

Law Offices of Paul R. Bartleson
1007 7th Street, Suite 202, Sacramento, CA 95814 . 916.447.6640

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b a n k r u p t c y b a n k r u p t c y b a n k r u p t c y b a n k r y	Paul R. Bartleson, Attorney at Law PRE-FILING BANKRUPTCY PRIOR TO FILING BANKRUPTCY: BANKRUPTCY ALTERNATIVES The first question we ask you is whether you have investigated other alternatives to keep you out of the Bankruptcy Court. First, examine your budget and find out where you are spending your money. Sometimes, debt consolidation through Consumer Credit Agencies can help.. You can also call your credit card companies or other creditors and negotiate lower payments or interest rates. Frequently, however, that doesn’t work, because some creditors can be unreasonable and won’t back off. If you have a tax problem with the IRS or Franchise Tax Board, you can try an offer in compromise. If you haven’t filed tax returns, get them filed. Consult a Tax Professional such as a CPA, Enrolled Agent, or Tax Attorney. In order to be eligible for Bankruptcy, you are required to have filed your last four years of tax returns. You are required by law anyway to file your tax returns; the failure to do so results in late filing fees, penalties, interest, and can be punished as a crime. Filing Bankruptcy doesn’t dispense with the requirement to file your return, so just go ahead and do it. The second question you should address is, “What does the future hold for you? Is the present situation temporary, or do you expect it to get better in the future? If you don’t have a realistic plan for paying off your debts in the near future, you are kidding yourself. Many people act with the best intentions and try in vain to pay their debts, only to wake up years later and come to the sad realization that their life has gotten worse, not better, and that they have just been throwing away money at their debts that they could have been using to rebuild their lives. If you are faced with a lawsuit, we will review to see if you have any defenses. We will also tell you if bankruptcy won't help you. ELIGIBILITY: 1. Tax Returns/Proof of Income The Bankruptcy Reform Act of 2005 added several requirements in order for you to be eligible to file Bankruptcy. You must have filed your tax returns for the four years preceding your petition. You also have to provide proof of income for a six month period prior to your Bankruptcy. 2. The “Means Test” Consumer debtors have to go through a “means test” designed by Congress to weed out people who are abusing the system. The formula uses actual numbers regarding your income and expenses, with artificial standards for expenses. Information that you provide is entered into an artificial formula, and if your income exceeds the mean income for the District in which you file, and you are able to pay a portion of the debt back, you maybe ineligible for Chapter 7. You are entitled to deduct certain things such as secured debt payments on a house or car, taxes, medical expenses, spousal and child support etc. within certain limitations. Although the means test disqualifies some from a Chapter 7 filing, as a practical matter experience has shown that the “means test” has not affected the vast majority of filers. Most people wanting to file a Chapter 7 are still eligible. 3. Education Requirements: The Bankruptcy Code now also requires that you complete two educational requirements from a credit counseling agency approved by the Department of Justice. 1) Prior to filing, you must obtain a “credit counseling certificate;” which consists of a review of your current financial situation. 2) Before the discharge is entered you must complete a “debtor education” course that provides you with more insight on how to handle your finances. The purpose of these two courses is to make you examine your finances and make sure that you have done everything to avoid filing bankruptcy, and second, that you have some minimal financial skills so that once you are completed, you will never have to go through the process again. Once we accept your case, we will ask you to fill out a questionnaire and return it to our offices to begin. To Learn More About the Bankruptcy Process, Please Go to Bankruptcy 101>>>	Law Offices of Paul R. Bartleson 1007 7th Street, Suite 202, Sacramento, CA 95814 916.447.6640 E-mail Us