THE "SIX STEPS"
Please follow each step. Do not jump over any step, otherwise you will be sent back to complete the missing step and this will slow the process for completing your bankruptcy.

Step One - Click here for Educational videos on the basics between chapter 7 and chapter 13.  Watch all 7 short videos.  IF YOU ARE MARRIED YOU BOTH MUST WATCH THESE VIDEOS.  The videos will help you understand the basics of bankruptcy, assist you in understanding your duties in bankruptcy and dispel many myths about bankruptcy. Click here for the list of Arizona exemptions.  You will need this list when watching the videos.  Please do not skip watching the videos or reviewing the Arizona Exemptions.  This is a core education process for a successful bankruptcy.  Once you have finished this step move on to step two. 

Step Two - Click here for General Review of Financial Status - fill out this form.  Please, make certain that you have completed step one.

Step Three - Reviewing the documents filed with the court. 

1. Ms. Drain sent you a copy of the documents (called petition, schedules, and statement of affairs) that were filed with the court. Contact our office if you did not receive these documents. You signed these documents under penalty of perjury.  Meaning, that when you signed your sworn that the documents were true and accurate as of the DATE OF FILING THE BANKRUPTCY.  It is our experience that many people don't understand the importance of making sure these documents are completely accurate.  Therefore, Ms. Drain requires that you review the documents.  Let us know if there are any corrections.  To remind you, unless we way otherwise, this information is as of the date that your bankruptcy was originally filed.

2. One of the important issues is to make sure that all your creditors were listed in your bankruptcy documents.  If you fail to list a creditor they may be able to sue you after your bankruptcy is completed.  As you review Schedules D, E, F and G make sure they list all debts and all creditor addresses.
   *Confirming addresses: uses the creditors' bills and statements
   *Use your free credit reports: obtain credit reports from all 3 reporting agencies.  If you are married obtain credit reports for each spouse. Click here for the link to the free credit report. Why free - the federal law requires that every Arizona resident be able to obtain a free annual credit reports. If married, obtain all three credit reports for both spouses. 
   *use the Internet (if you cannot find another other addresses).

3. Schedule B (the property that you owned on THE DAY OF FILING THE BANKRUPTCY).  This form must list everything you owned on the day of filing.  The value must be yard sale or re-sale value, not what you paid for the item.  As to bank accounts: you must list the actual amount IN THE BANK ACCOUNT on the DAY OF FILING.  Under Arizona law you are allowed to protect $150 per adult in a bank account.  If you had more than either $150 or $300 (couple) in your bank accounts then you will be forced to pay that extra money to your creditors.  Do not deduct outstanding checks.  This figure must be a actual amount in the account(s) on the date of filing. We recognize this is difficult, unless you keep all your statements, but it could result in saving you several thousand dollars.

4. Now comes the tricky part - Schedules I (income) and J (expenses) need to be filled out with the income and expenses AS OF TODAY, NOT AS OF THE DATE OF FILING THE BANKRUPTCY.

Step Four- Send the following to Ms. Drain:

1. Signed retainer

2. Signed disclosure

3. fully completed General Review of Financial Status

4. Copy of schedule B (as of the date of filing) with changes marked on the documents.

5. Updated schedules I and J, with current information, not as of the date of filing, Please make the changes on the schedules.

6. Any other schedules with changes marked on the documents.

It is very important that we receive all this information at one time.   You may send it by e-mail (send as one PDF for each document, do not send as a single PDF for all documents), fax or e-mail.  Send only those pages that have changes. Make sure that all the documents include your name.

It is possible that my staff may ask you to complete a new means test: 3) New Means Test (click here).  We know you entered this information in the paperwork already filed with the court, but we have found a very high rate of errors on some of these complicated forms.  Accurate information on this document is very important.  Inaccurate information will lead to you paying more in your chapter 13 case then necessary.  There is no reason to fill this form out unless requested by my staff.  NOTE: the income on this means test will be as of the date of filing your case, not as of today.

Step Five- Financial Management Course - Congress requires that you take a financial management course after filing your bankruptcy.  If you are married you both must take this class.  The 50 minute class can be taken on the internet or phone.  We recommend  Institute for Financial Literacy (click here) or any others that are approved by the US Trustee's Office. Beware of offers from fraudulent educational services.

This office does not act as a facilitator, you must pay any fees directly to the company; we do not give you a log-in number, you just obtain that from the company.  You will be issued a certificate once the class is completed; make sure to send my office a copy of this certificate.

Step Six: meeting with Ms. Drain

We will begin a review of your file once my office has received all the documents listed above.  Ms. Drain, or her staff, will contact you if they need additional information.  Once this review is completed Ms. Drain will contact you to schedule a meeting.  Meanwhile, it is very important that you continue to make the plan payment to the trustee and pay your mortgage company (if any). Normally, Ms. Drain will not meet with anyone who is behind more than one month on their plan payments to the trustee.  Let us know if you have an unusual situation (loss income or change in circumstances).

Ms Drain will review your complete file and help you understand the changes that may be necessary on your Plan. If you like, there can also be a discussion about converting this case to a chapter 7.  This meeting may take one or two hours. 

AS A FAVOR TO MS. DRAIN:
1) I am sensitive to strong smells.  So please avoid the use of perfumes or cologne when you meet with me. 
2) Leave small children at home.  Our meeting is long and you need to be able to concentrate.
3) Illness: please reschedule your appointment if you or your family members are ill with cold or flu symptoms.
Thank you for your courtesy.

Are you behind on your mortgage?: Fact sheet on Home Affordable Modification Program (HAMP) for homeowners in bankruptcy (click here).