You’re already dealing with the emotional stress of bill collectors and now you have to fill out a whole bunch of paperwork before you can file your bankruptcy case!?! Why?
In order to receive a discharge of your debts in a chapter 7 or a chapter 13 in Arizona, the law requires that your bankruptcy petition is complete, accurate and truthful. This means that you have to list everything you own that has value (assets) such as real estate, personal items, anything with wheels, money, jewelry, furniture, tools, guns, pictures (etc.) along with its replacement value. The listed value has to be determined by you, the debtor, as being your best estimate of what it would take to replace the item with another in the same or similar condition. You have to list all of your income from employment, rental income, retirement benefits, etc. A complete list of your expenses is also needed to show your monthly budget which is then compared with your income. If you sold or transferred anything in the last two years or if you have a pending lawsuit, it needs to be listed. You also have to list everything you owe, all of your debts, so that each creditor receives notice of your bankruptcy.
The law is filled with rules that must be followed in order to receive bankruptcy protection. The initial paperwork you complete may be time consuming, but it allows your attorney to see your true financial picture in order to get you the best legal protection for your assets. Only you can fill out this paperwork, because only you know your true financial picture. Only you have been receiving the bills or checks. If you hide things from the bankruptcy court, your case could be dismissed, or worse, you could face criminal prosecution and be subjected to fines, imprisonment, or both. So be honest. Talk to your attorney about everything.
