Tips for a successful Chapter 7 bankruptcy case

Here are some tips to help ensure the bankruptcy case proceeds as smoothly as possible and the debtor receives the full benefits of the bankruptcy.

• Check to make sure the paperwork is complete and accurate
  • Each debtor has the primary responsibility to ensure that the paperwork is complete and accurate, even if an attorney or document preparer is assisting in the case.  Remember that the various papers filed with the court are signed under penalty of perjury.
• Specific things to check:
  • Make sure that all property is listed in Schedule B.  Even if an item has little or no value, it still must be listed.  Property that will be surrendered to a creditor must also be listed.
  • Make sure that all debts are listed in Schedules D, E, and F, even if some of those debts will be repaid.  Be sure to include all of the required information such as when the debt was incurred and what it was for.
  • Completely answer each of the questions in the Statement of Financial Affairs.  Be sure to include all of the required information for each question such as dates, purposes, amounts, and so forth.  It is very important that all income, transfers of property, payments and similar information are fully listed.  Also, make sure to provide all of the required information for each business in which the debtor has or had an interest within the past 6 years.
  • Because Arizona is a community property state, in most cases all income and property of both spouses must be listed even if one of the spouses does not file bankruptcy.
  • Any inheritance a debtor receives or becomes entitled to receive up to 6 months after the bankruptcy case is filed must be disclosed to the Trustee.
• Promptly and fully respond to requests from the Trustee
  • Each debtor is required to cooperate with the Trustee, so it is very important to promptly and completely respond to each request from the Trustee to turn over property or supply additional information or documents.
• Get competent legal advice
  • Consult with a qualified bankruptcy attorney if that has not already been done and there are questions about the bankruptcy case.  Debtors are not excused from complying with all of the requirements in the case even though they may not know or understand the law.  Therefore, it is usually in the best interests of each debtor to consult with a qualified bankruptcy attorney.
  • Understand that document preparers are prohibited by law from giving legal advice.  They cannot tell a debtor what property to list or exemptions to claim.  They can only transfer to authorized official bankruptcy forms the information a debtor gives them, and may not filter or otherwise change the nature or content of that information.