In preparing to file for personal bankruptcy, whether it is a chapter 7 or 13, there are certain things that you should be aware of. The moment that you start to think about bankruptcy as a serious solution to your financial woes, you should contact your Arlington bankruptcy lawyer immediately.
According to new regulations set by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, if a person purchases any luxury items of a substantial sum of money, where substantial is defined as any amount over $500, within 60 days of filing a bankruptcy petition, he or she will be responsible for paying for the item or items. This includes cash advances and services that exceed $500. This helps to prevent those individuals who intend to file for bankruptcy and still benefit from costly last minute purchases. Believe it or not, people will try to ‘load up’ on things like computers or laptops, TVs, furniture, components to enhance a vehicle, clothing, and countless other items that are by no means necessary. Similarly, this practice protects creditors and other companies from avoidable losses. The Arlington bankruptcy lawyer that you select to represent you should inform you of things like this that can potentially cause an unfavorable outcome or decision for your bankruptcy petition.
In order to have a legitimate bankruptcy claim, your Arlington bankruptcy lawyer will need to be able to prove that you are in financial distress and a recent big ticket item purchase will not do much to help substantiate that claim. In addition to not purchasing last minute expensive items, avoid last minute auto repairs that exceed $500. If emergency repairs must be made to your vehicle then you must be prepared to pay for the repairs as they will not be included in your bankruptcy. Have evidence to support the necessity of the repairs so that your petition is not declined.