Required Disclosures And Information About Bankruptcy

Debt Relief Agency Disclosures & Notices

(Required by the Bankruptcy Code: 11 U.S.C. §§ 527, 528, 342(b))

We are a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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Part 1. Notice Required by 11 U.S.C. § 527(a)(1)–(3)

You have the right to:

• File for relief under Chapter 7, 11, 12, or 13 of the Bankruptcy Code.
• Seek advice from an attorney about whether filing bankruptcy is right for you.

Your duties include:

• You must provide complete, accurate, and truthful information about your financial situation.
• You must disclose all of your assets, debts, income, and expenses.
• The Bankruptcy Court, trustee, and your creditors may review and examine your information.
• Knowingly concealing information or making a false statement is a federal crime (18 U.S.C. §§ 152, 3571).

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Part 2. Notice Required by 11 U.S.C. § 527(b)

Important Information About Bankruptcy Assistance Services From an Attorney

If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. The law requires an attorney, or preparer if you use one, to give you a written contract that clearly explains what services will be provided and how much they will cost.

You are required to truthfully and completely disclose information about your financial situation. You must disclose all property you own, all of your income, all of your debts, and all of your expenses. If you hide property or income, you may be subject to criminal sanctions.

All information you provide may be audited, and the accuracy of the information is important. If you fail to provide complete, accurate, and truthful information, your case may be dismissed, or you may lose the right to receive a discharge of your debts.
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Part 3. Notice Required by 11 U.S.C. § 342(b)

(Official Form B2010 – “Notice to Individual Consumer Debtor”)

Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form 2010)

Chapter 7: Liquidation

This notice is for you if:

• You are an individual filing for bankruptcy, and
• Your debts are primarily consumer debts.
  • Consumer debts are defined in 11 U.S.C. § 101(8) as “incurred by an individual primarily for a personal, family, or household purpose.”

The types of bankruptcy that are available to individuals

Individuals who meet the qualifications may file under one of four different chapters of the Bankruptcy Code:

• Chapter 7 — Liquidation
• Chapter 11 — Reorganization
• Chapter 12 — Voluntary repayment plan for family farmers or fishermen
• Chapter 13 — Voluntary repayment plan for individuals with regular income

You should have an attorney review your decision to file for bankruptcy and the choice of chapter.

$245 filing fee

$78 administrative fee

+            $15 trustee surcharge

$338 total fee

Chapter 7 is for individuals who have financial difficulty preventing them from paying their debts and who are willing to allow their nonexempt property to be used to pay their creditors. The primary purpose of filing under chapter 7 is to have your debts discharged. The bankruptcy discharge relieves you after bankruptcy from having to pay many of your pre-bankruptcy debts. Exceptions exist for particular debts, and liens on property may still be enforced after discharge. For example, a creditor may have the right to foreclose a home mortgage or repossess an automobile.

However, if the court finds that you have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge.

You should know that even if you file chapter 7 and you receive a discharge, some debts are not discharged under the law.

Therefore, you may still be responsible to pay:

• most taxes;
• most student loans;
• domestic support and property settlement obligations;
• most fines, penalties, forfeitures, and criminal restitution obligations; and
• certain debts that are not listed in your bankruptcy papers.

You may also be required to pay debts arising from:

• fraud or theft;
• fraud or defalcation while acting in breach of fiduciary capacity;
• intentional injuries that you inflicted; and
• death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs.

If your debts are primarily consumer debts, the court can dismiss your chapter 7 case if it finds that you have enough income to repay creditors a certain amount. You must file Chapter 7 Statement of Your Current Monthly Income (Official Form 122A–1) if you are an individual filing for bankruptcy under chapter 7. This form will determine your current monthly income and compare whether your income is more than the median income that applies in your state.

If your income is not above the median for your state, you will not have to complete the other chapter 7 form, the Chapter 7 Means Test Calculation (Official Form 122A–2).

If your income is above the median for your state, you must file a second form —the Chapter 7 Means Test Calculation (Official Form 122A–2). The calculations on the form— sometimes called the Means Test—deduct from your income living expenses and payments on certain debts to determine any amount available to pay unsecured creditors. If your income is more than the median income for your state of residence and family size, depending on the results of the Means Test, the U.S. trustee, bankruptcy administrator, or creditors can file a motion to dismiss your case under § 707(b) of the Bankruptcy Code. If a motion is filed, the court will decide if your case should be dismissed. To avoid dismissal, you may choose to proceed under another chapter of the Bankruptcy Code.

If you are an individual filing for chapter 7 bankruptcy, the trustee may sell your property to pay your debts, subject to your right to exempt the property or a portion of the proceeds from the sale of the property. The property, and the proceeds from property that your bankruptcy trustee sells or liquidates that you are entitled to, is called exempt property. Exemptions may enable you to keep your home, a car, clothing, and household items or to receive some of the proceeds if the property is sold.

Exemptions are not automatic. To exempt property, you must list it on Schedule C: The Property You Claim as Exempt (Official Form 106C). If you do not list the property, the trustee may sell it and pay all of the proceeds to your creditors.

Chapter 11: Reorganization

$1,167 filing fee

+              $571 administrative fee

$1,738 total fee

Chapter 11 is often used for reorganizing a business, but is also available to individuals. The provisions of chapter 11 are too complicated to summarize briefly.

Read These Important Warnings

Because bankruptcy can have serious long-term financial and legal consequences, including loss of your property, you should hire an attorney and carefully consider all of your options before you file. Only an attorney can give you legal advice about what can happen as a result of filing for bankruptcy and what your options are. If you do file for bankruptcy, an attorney can help you fill out the forms properly and protect you, your family, your home, and your possessions.

Although the law allows you to represent yourself in bankruptcy court, you should understand that many people find it difficult to represent themselves successfully. The rules are technical, and a mistake or inaction may harm you. If you file without an attorney, you are still responsible for knowing and following all of the legal requirements.

You should not file for bankruptcy if you are not eligible to file or if you do not intend to file the necessary documents.

Bankruptcy fraud is a serious crime; you could be fined and imprisoned if you commit fraud in your bankruptcy case. Making a false statement, concealing property, or obtaining money or property by fraud in connection with a bankruptcy case can result in fines up to $250,000, or imprisonment for up to 20 years, or both. 18 U.S.C. §§ 152, 1341, 1519, and 3571.

Chapter 12: Repayment plan for family farmers or fishermen

$200 filing fee

+              $78 administrative fee

$278 total fee

Similar to chapter 13, chapter 12 permits family farmers and fishermen to repay their debts over a period of time using future earnings and to discharge some debts that are not paid.

Chapter 13: Repayment plan for individuals with regular income

$235 filing fee

+             $78  administrative fee

$313 total fee

Chapter 13 is for individuals who have regular income and would like to pay all or part of their debts in installments over a period of time and to discharge some debts that are not paid. You are eligible for chapter 13 only if your debts are not more than certain dollar amounts set forth in 11 U.S.C. § 109.

Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, usually using your future earnings. If the court approves your plan, the court will allow you to repay your debts, as adjusted by the plan, within 3 years or 5 years, depending on your income and other factors.

After you make all the payments under your plan, many of your debts are discharged. The debts that are not discharged and that you may still be responsible to pay include:

• domestic support obligations,
• most student loans,
• certain taxes,
• debts for fraud or theft,
• debts for fraud or defalcation while acting in a fiduciary capacity,
• most criminal fines and restitution obligations,
• certain debts that are not listed in your bankruptcy papers,
• certain debts for acts that caused death or personal injury, and  certain long-term secured debts.

Warning: File Your Forms on Time

Section 521(a)(1) of the Bankruptcy Code requires that you promptly file detailed information about your creditors, assets, liabilities, income, expenses and general financial condition. The court may dismiss your bankruptcy case if you do not file this information within the deadlines set by the Bankruptcy Code, the Bankruptcy Rules, and the local rules of the court.
For more information about the documents and their deadlines, go to: http://www.uscourts.gov/forms/bankruptcy-forms

Bankruptcy crimes have serious consequences

• If you knowingly and fraudulently conceal assets or make a false oath or statement under penalty of perjury—either orally or in writing—in connection with a bankruptcy case, you may be fined, imprisoned, or both.
• All information you supply in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the U.S. Trustee, the Office of the U.S. Attorney, and other offices and employees of the U.S. Department of Justice.

Make sure the court has your mailing address

The bankruptcy court sends notices to the mailing address you list on Voluntary Petition for Individuals Filing for Bankruptcy (Official Form 101). To ensure that you receive information about your case, Bankruptcy Rule 4002 requires that you notify the court of any changes in your address.

A married couple may file a bankruptcy case together—called a joint case. If you file a joint case and each spouse lists the same mailing address on the bankruptcy petition, the bankruptcy court generally will mail you and your spouse one copy of each notice, unless you file a statement with the court asking that each spouse receive separate copies.

Understand which services you could receive from credit counseling agencies

The law generally requires that you receive a credit counseling briefing from an approved credit counseling agency. 11 U.S.C. § 109(h). If you are filing a joint case, both spouses must receive the briefing. With limited exceptions, you must receive it within the 180 days before you file your bankruptcy petition. This briefing is usually conducted by telephone or on the Internet.

In addition, after filing a bankruptcy case, you generally must complete a financial management instructional course before you can receive a discharge. If you are filing a joint case, both spouses must complete the course.

You can obtain the list of agencies approved to provide both the briefing and the instructional course from: http://www.uscourts.gov/servicesforms/bankruptcy/credit-counseling-and-debtoreducation-courses.

In Alabama and North Carolina, go to: http://www.uscourts.gov/servicesforms/bankruptcy/credit-counseling-anddebtor-education-courses.
If you do not have access to a computer, the clerk of the bankruptcy court may be able to help you obtain the list.

Part 4. Written Contract Required by 11 U.S.C. § 528(a)

You must sign a written contract with us within 5 business days of first receiving services, and before your case is filed. That contract will:

• Clearly explain the services we will provide.
• Clearly state the fees and terms of payment.
• Be signed and dated by both you and our firm.

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Part 5. Advertising Disclosure Required by 11 U.S.C. § 528(b)

If you see our advertising (including this portal, our website, or other media), we must state:

“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”