Letter Regarding Bankruptcy
Important information for our clients:
1)Watch the watch the court provided videos.
2) There is a questionnaire that needs to be filled out to complete your bankruptcy
petition. Once you have the questionnaire filled out, mail it back with a money order,
personal check or credit card made out to Legal Alternatives. Usually clients mail priority
flat rate (it gets here in 2 days or less and costs less).
3) Please note that the creditors you need to list are the original creditor that you made
the debt with. For example, Capital One Visa, or a utility company, Dr. Smith, or your bank.
For the creditor, I will need their name, mailing address, account number if available, how
much you owe them plus any additional fees they've added on, and when the debt began
(could list just the year). Then there are collection agencies. Many creditors assign debts
out to collection agencies, I would like the collection agency=s name & mailing address,
so they can get a notice and stop bothering you. If you have any questions, please call
me or email.
4) Maybe you would like to look at your credit report. This link is to your free annual credit
report is www.annualcreditreport.com.
5) To file bankruptcy, the court requires you take a credit counseling course. Here is the
link for the approved credit counseling http://www.usdoj.
gov/ust/eo/bapcpa/ccde/cc_approved.htm. Click on the link & fill in your state. This class
is required for you & if you have a spouse filing bankruptcy, then your spouse must take
the course, also. There is a fee of up to $50 per person. You are required to take the
class & get a certificate of proof.
6. Income tax information: You need to include the last 2 years of income tax returns for
the bankruptcy court Trustee. Plus the petition needs 2 years of income included. If you
do not have your last 2 years tax returns, here=s the IRS information.You have two easy
and convenient options for getting copies of your federal tax return information--tax
transcripts and tax transcripts--by calling 1-800-829-1040, or by mail using IRS Form
4506T (Request for Transcript of Tax Return). The IRS does not charge a fee for
transcripts. Allow two weeks for delivery.
Definitions: A tax return transcript shows most line items from your tax return (Form
1040,1040A or 1040EZ) as it was originally filed, including any accompanying forms and
schedules. It does not reflect any changes you, your representative or the IRS made after
the return was filed. In many cases, a return transcript will meet the requirements of
lending institutions such as those offering mortgages and for applying for student loans.
A tax account transcript shows any later adjustments either you or the IRS made after the
tax return was filed. This transcript shows basic data, including marital status, type of
return filed, adjusted gross income and taxable income. Link to IRS website: http://www.irs.
gov/individuals/article/0,,id+110571,00.html
LIST OF FEES
1. Court fee is $299 for chapter 7. We will fill out requested payments of $74.75 per
month for 4 months for a total of $299.
2. Credit counseling, your fee would be up to $50. Some charge less. Your credit
counseling can be done on the phone, over the internet, or in person. If your spouse if
filing joint petition, you would each need to take the course, that would be 2 fees & 2
certificates. Please note: Abacus Credit Counseling is approved for all states except
Oregon, Alabama, and North Carolina. They charge $25 per individual or couple. Their
website is www.abacuscc.org. & telephone number is 1-800-516-3834.
3. Once you have filed, then the court requires that you take another course of Debtor
Education, to help you not get into the need for bankruptcy. There is a $50 fee to take the
class & get the certificate that the court requires to give you a discharge on your debts. If
your spouse is filing, that would mean 2 fees & 2 certificates.
While you are gathering your creditors & filling out the questionnaire to mail to me. You will
need to gather additional information for a later mailing to the Bankruptcy Trustee who will
be assigned to your case:
---Last 2 years income tax papers that were filed. Did you file? If not, I will need to prepare
statements for the court Trustee as to why you haven't filed.
---Last 2 months wage stubs or a statement from employer as to your earnings for the last
2 months & your deductions. Are you self employed? Then you will need your accountant
to prepare a year to date income statement for court.
---Last 2 months of bank statements.
Okay, you have lots of home work. Feel free to email me anytime. I want to help you
taking away some of your financial stress. Don't fear bankruptcy, the court, the
paperwork, or the creditors. We are here to help you get out of debt!
The staff of Legal Alternatives
| Legal Alternatives A Paralegals Firm Preparing bankruptcies for all 50 states PO Box 2159; Ferndale, WA 98248 360-384-1217 or 1-888-340-4674 |
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