102 Things You Need to Know Before You File Bankruptcy Written and Published by Victoria Ring, Bankruptcy Paralegal Columbus, Ohio USA email: bankruptcy@columbus.rr.com website: http://www.victoriaring.com/bankruptcy/ An Important Message to the Readers: This free ebook provides information and general advice about the law from the knowledge and viewpoint of a bankruptcy paralegal However, laws and procedures change frequently, and they can be interpreted differently by different people For specific advice geared to your particular financial situation, consult an expert No book, software, or other published material is a substitute for personalized advice from a knowledgeable attorney licensed to practice law in your state Copyright © January 2001 by Victoria Ring ALL RIGHTS RESERVED No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise for sale or profit, without prior written permission of Victoria Ring Printing of this publication from the internet download version is permitted for private viewing only TABLE OF CONTENTS Page Bankruptcy To Go Kit a Overview a Free Forms Included b Paid Services b Guidelines How Filing Bankruptcy Can Help You Terms You Need to Know Concerning Bankruptcy Chapter Bankruptcy Steps That Occur in Filing a Chapter Bankruptcy Chapter 13 Bankruptcy Steps That Occur in Filing a Chapter 13 Bankruptcy Changes in Payments During a Chapter 13 Bankruptcy Chapter 11 Bankruptcy Rules that Apply to All Forms of Bankruptcy Debts That Cannot be Discharged The First Steps to Filing a Bankruptcy Petition How Your Credit Will be Effected by Bankruptcy 10 Other General Questions and Answers 10 Websites to Help you Learn More About Bankruptcy 13 Information-Gathering Forms for the preparation of Your Bankruptcy Petition 14 General Information Debt Sheet Income History Monthly Budget Asset Checklist Duty to Disclose All Assets 13 Duty to Disclose All Creditors 14 Agreement 15 Additional Documents Needed to File Petition 16 102 Things You Need to Know Before Filing Bankruptcy Bankruptcy To Go Kit This file that you recently downloaded from the internet is a complete ebook dedicated to helping the following types of people: (a) Consumers people who are interested in learning more about bankruptcy and/or interested in filing their own bankruptcy and saving $100’s of dollars in attorney fees (b) Paralegals legal professionals with an attorney/boss who is considering offering bankruptcy services to clients (c) Attorneys legal professionals who not normally offer bankruptcy services to clients, but are interested in starting The forms included in this “Bankruptcy To Go Kit” can be printed and used in the office as master forms Overview Thank you for downloading this free book from the website located at http:// www.victoriaring.com/bankruptcy/ book01.doc This book is written by a Victoria Ring, a bankruptcy paralegal, who is well aware of the confusion and multitude of questions that surround the subject of bankruptcy Her experience of working with 100’s of clients filing bankruptcy in the Columbus, Ohio area has awarded her the ability to know what consumers really think and want to know about this subject as well as all the steps they need to take in order to file For instance, Matt down the street comes by one day to tell you how he filed bankruptcy last week and purchased a new car this week However, your brother Marshall filed bankruptcy last year and his credit has been ruined ever since Marshall can’t even get a check-cashing card at his bank What happened? What did Matt that Marshall didn’t? Will the same thing happen to you? And what about when Debbie filed bankruptcy because her husband died and the household income was reduced? When she filed bankruptcy they came and took her home away! Of course there is no way you would want that to happen to you You don’t want to lose your home, car and furniture just because you decide to file bankruptcy Stories like these are certainly not unique All of these same fears surround almost everyone when they are thinking about filing bankruptcy for the first time Fear of the unknown is a natural reaction for human beings However, this is precisely the reason why this book was written It is written to take the fear out of filing bankruptcy, but most importantly, it will educate you so you can make a more informed decision about whether filing bankruptcy is in your best interest or not Filing bankruptcy is not necessarily for everybody, as you will soon see; and after reading this ebook, you will be in a better position to make an educated decision about your present financial condition If you decide to go ahead with the process of filing bankruptcy, at least you will know what to expect after reading this ebook Free Forms Included Beginning on Page 14 of this ebook, a variety of forms are provided for you to print out, fill out and mail in at your convenience if you decide you want to file your own bankruptcy Or, if you are an attorney, you can print out the forms, remove my name from them and use them for your own office I personally designed these forms for the two bankruptcy attorney’s that I was employed with At the time I hired at the law firm, they were still using old 1960’s style forms Because the bankruptcy laws had changed so dramatically, when we did intake interviews with clients, we had to write additional information on the side, bottom and back of the old 1960’s forms to have enough information to prepare the bankruptcy petition After several months of using these old, outdated forms I figured out the best way to update them I sat down one day and re-designed the forms to include virtually every piece of information needed for the paralegal to prepare a well-presented bankruptcy petition to the Bankruptcy Court However, the forms were not perfect the first time out We had to put them through actual office use and work the “bugs out” before they were perfect So be assured, the forms included in this Bankruptcy-To-Go Ebook Package have been previously tested by a law firm that does nothing but specialize in filing bankruptcy petitions Paid Services If, after reading this ebook, you should contemplate filing bankruptcy, print out the forms and start filling them out Even if you decide not to file bank- ruptcy right now, you will have pertinent and important information gathered to help you access your financial situation Also, if you should hire an attorney to file your bankruptcy petition, the forms will already be ready to hand to the attorney He/She will greatly appreciate your preparedness and it will be quicker to process your bankruptcy petition However, if you want to save $100’s in attorney fees, I can personally prepare you a Chapter or Chapter 13 bankruptcy and submit it as a “non-attorney preparer.” (It is legal in all 50 states to file your own bankruptcy with or without an attorney.) I will prepare your petition for $89.95 and send it back to you through the mail You then take the papers and file them in court, attend your 5-10 minute 341 Hearing in about weeks and confirmation hearing which takes 2-3 minutes It’s a simple process, which I will walk you through if you decide to us my services But let’s read on to discover those 102 things you need to know before filing bankruptcy That’s why you downloaded this ebook for in the first place, right? My best to you, Victoria Ring Victoria Ring Bankruptcy Paralegal “102 Things You Need to Know Before You File Bankruptcy” Page Guidelines If you are considering filing for bankruptcy, you are not alone Many people have and will continue to file for bankruptcy based upon the times with corporate layoffs, downsizing and continuing business failures Although not inclusive, the general guidelines below will help you determine if you should consider filing bankruptcy You should file for bankruptcy when you cannot reasonably pay your bills If your income does not sufficiently pay off or pay down your bills, it’s time to consider bankruptcy If your monthly debt is 1.5 times your monthly income For example, if you have a monthly net income of $2,800 but your monthly expenses are about $4,200, it’s time to think about bankruptcy If you cannot budget yourself out of the debt within four years, it’s time to seriously consider bankruptcy If you are more than two months late on your bills, bankruptcy may be a consideration If your loan or mortgage has been “called” or accelerated, it’s time to seriously consider bankruptcy If you get a foreclosure notice from the bank or a lender; it’s time to seriously consider bankruptcy If you have withdrawn from your savings account for two months; bankruptcy may be a consideration If you are depressed about your financial situation, it may be time to consider bankruptcy 10 If you have a severe financial setback such as the loss of a job, major surgery without medical insurance, etc., it’s time to seriously consider bankruptcy Generally, people filing for bankruptcy are dealing with the following situations: • Loss of their job or their primary means of support; • Been laid off from their job; • Been demoted or given a significant pay cut; • Experienced major family problems leading to divorce, child custody or separation; • Excessive major credit card problems; • Catastrophic medical-doctor bills from an uninsured major surgery or illness such as terminal cancer; • Desperate financial situations with little hope How Filing Bankruptcy Can Help You 11 Filing bankruptcy is as simple as taking a set of papers down to the Bankruptcy court, standing in line at the Clerk of Court, paying a filing fee and having the papers date/time stamped and handed back to you (The court keeps the original.) A Judge will also be assigned at this time This simple process takes about 10 “102 Things You Need to Know Before You File Bankruptcy” Page minutes to complete This set of papers that you filed with the court is called a “bankruptcy petition.” The moment the Clerk of Court stamps your bankruptcy petition, the following good things can happen to you: 20 Secured Debt — This is a debt you owe for an item that could be taken away from you if you don’t pay the bill For instance, if you don’t make your house payment, the creditor (or bank) you owe can repossess your house 12 Anybody you owe cannot contact you in any way (once they receive notice in the mail from the court.) 21 Unsecured Debt — This is a debt you owe for something that cannot be taken from you For instance, anything you charge on a credit card is an “unsecured debt.” If you don’t pay the MasterCard bill this month, they cannot come and take whatever you bought with the credit card All they can is harass you on the telephone until you pay the bill, turn the bill over to a collection agency, or attempt to get a judgement against you (depending on the amount you owe them.) 13 Any wage garnishments taken out of your check will cease to be lawful If the garnishment is taken out of your check after you file bankruptcy you may be entitled to a refund 14 Any foreclosure action on your home or other real property is stopped 15 Any Sheriff’s sales are stopped immediately 16 Any taxes you owe that are currently being collected on by the government are put on hold (while your debts are being reorganized.) 17 Anybody coming to repossess your auto, boat, furniture, appliances, or anything else are stopped immediately and cannot remove anything without the Bankruptcy Court’s permission Terms You Need to Know Concerning Bankruptcy 18 Creditor — This is the person or company you owe money to because they extended credit to you 19 Debtor — This is YOU You owe debts, so you are a debtor 22 Asset — This is something you own that has resale value Your car, TV set, computer, stocks, bonds, bank accounts, piggy bank, clothes, bed, etc are all things that have some type of value that could be turned into cash These types of things are your assets 23 Discharge — This is what happens when your debts are erased and you have completed your bankruptcy 24 Exemption — There are exemption allowances allowed by the Bankruptcy Court to protect the assets you own that you need to keep in order to live a normal life For instance, you need a house to live in, a car to drive, transportation to maintain the car, clothes to wear, medicine refills, personal care items, etc The law allows you to keep these types of items by allowing you exemptions on them When anything you own is totally exempt from “102 Things You Need to Know Before You File Bankruptcy” Page the bankruptcy, no one can take it away from you 25 Automatic Stay — The moment a bankruptcy is filed, all creditor activity to collect debts, obtain judgments, or obtain property of a debtor to satisfy a debt is completed stopped This is the protection provided to you as a consumer under the Bankruptcy law in the United States 26 Relief From Stay — This is a court order, requested by a creditor, who asks the court to lift the Automatic Stay that was immediately put in place when the debtor filed the bankruptcy petition If a creditor is granted a Relief from Stay, the debtor will receive notice from the court of its existence and the bankruptcy attorney can prepare a Motion on the debtor’s behalf to request the court to remove the Relief from Stay (Of course, there must be a lawful reason to so.) 27 Reaffirmation Agreement — This is what you file with the court if you decide to pay a creditor outside your bankruptcy For example, you may want to reaffirm with Bob’s Auto Sales when you file your Chapter bankruptcy petition, because you want to keep making payments on your car since you need it to get back and forth from work 28 Trustee — This is a real “live” person that works for the Bankruptcy Court who normally oversees the entire process from beginning to end concerning your bankruptcy 29 Conversion — This is when you start out by filing one chapter of bankruptcy and decide later to file another chapter For example, you originally file a Chapter but decide to convert to a Chapter 13 30 Dismissal — Among other things, your bankruptcy case can be dismissed at any time if you fail to comply to any rules, don’t turn over asset monies that are requested by the Trustee or if you convert from one Chapter of bankruptcy to another Your case is “discharged” if you completely pay off your Chapter 13 or when your Chapter is legally finished Chapter Bankruptcy 31 In order to be eligible to file a Chapter bankruptcy, you must be able to meet these guidelines: • You must reside or have a domicile, a place of business, or property in the United States • You must not have received a bankruptcy discharge within the last six (6) years or have had a bankruptcy case dismissed within the last 180 days 32 People who file a Chapter bankruptcy so in order to discharge their debts and get a “fresh start” in life There are no income requirements to file a Chapter and people who file this type of bankruptcy are those who can no longer afford to repay all their debts due to illness, unemployment, marital problems, unexpected medical expenses, over-extended credit or other large expenses However, not all debts can be discharged For “102 Things You Need to Know Before You File Bankruptcy” Page example, alimony, student loans, child support and taxes that are less than years old are non-dischargable and must be repaid in full 33 Most consumers file a Chapter bankruptcy and then reaffirm on the debts they want to continue paying For instance, you can file a Chapter and reaffirm on your house This could possibly erase your other debts and you would continue making your house payments like you normally now, outside the bankruptcy (Note: There is pending legislation currently being debated in Washington D.C to change this law, making it harder for people to file a Chapter and forcing them to file a Chapter 13, but the law has not been enacted as of the date this ebook is written.) Steps That Occur in Filing a Chapter Bankruptcy 34 In order to be eligible to file a Chapter 13 bankruptcy, you must be able to meet these guidelines: • Have a steady source of income so that you can make regular payments to the Trustee • The total amount of your debts cannot exceed $750,000.00 and unsecured debts cannot be more than $250,000.00 35 When your bankruptcy petition is prepared and signed by you, it is filed with the Bankruptcy Court You are assigned a case number and a Trustee or “interim” Trustee An interim Trustee is the person who is responsible for overseeing your bankruptcy until the Meeting of Creditors, at which time you will be appointed a new Trustee or the interim Trustee will be assigned to your case 36 If you plan to reaffirm on a debt (which means you want to continue paying the bill on your own after the bankruptcy is over), your attorney or paralegal needs to submit a Reaffirmation Agreement to the creditor, obtain their signature and file this with the court However, you can still pay the bill on your own without filing a Reaffirmation Agreement; but it is best to file one if the creditor you owe can repossess something you want to keep (i.e., car, house, TV, computer, tools, etc.) 37 The Trustee will send a notice to all the creditors (people/companies you owe money to.) This notice is normally sent days after you file your petition 38 The court will normally send you a notice informing you that you are eligible to file bankruptcy You don’t have to anything with this notice but keep it in your personal file 39 The Trustee will then send all your creditors, including you, a notice informing you of the hearing date when you should appear in court This hearing is often referred to as the “Meeting of Creditors.” 40 At your Meeting of Creditors NO judge will be present The Trustee will ask you some of the same questions you answered when you first filled out the paperwork for the attorney or paralegal; who originally prepared your bankruptcy petition “102 Things You Need to Know Before You File Bankruptcy” Page 41 In actual practice, creditors rarely appear at these hearings; however, a representative from one of the companies you owe, or a person you owe, may show up at this meeting They normally only appear to ask where the secure item is and if it is insured 42 If your bankruptcy case is a “no asset” Chapter bankruptcy, the meeting will normally only last 5-10 minutes 43 If your bankruptcy case is a “no asset” Chapter bankruptcy; you normally will not have to appear in court again Essentially, you will receive a discharge through the mail and all your allowed debts are forgiven Chapter 13 Bankruptcy 44 People who file a Chapter 13 bankruptcy so in order to keep property in which a creditor has a lien — like a house or car, or if payments are behind and the creditor is about to foreclose or repossess the property The filing of a Chapter 13 will stop the foreclosure sale and allow the person to years to repay some, but not all of their debts Rather than wiping out all their debts in a Chapter proceeding, Chapter 13 allows a person to reorganize and pay a certain percentage of their debts over a period of to years The unpaid balance is discharged after the payment plan is completed Payments are made from each paycheck to the Chapter 13 Trustee, normally through employer wage deduction 45 A Chapter 13 is NOT a bill consolidation loan, although many people look at it that way Although it is a similar concept, a bill consolidation loan is money actually loaned to you to repay other creditors In a Chapter 13, no money is loaned to you because you make your monthly payments to the Trustee, who disburses the money among your creditors 46 Your priority claims are paid first in a Chapter 13 Priority claims include debts for things like taxes, child support, etc 47 The amount you owe unsecured creditors, like medical bills, credit cards, etc can normally be paid back as low as 5¢ on the dollar (This figure is not written in stone It is subject to change depending on your individual State laws, type of debt it is, as well as the income and budget of the debtor.) 48 You are normally allowed to keep your home, car and everything else you own when you file a Chapter 13 as long as you make regular payments to the Chapter 13 Trustee Steps That Occur in Filing a Chapter 13 Bankruptcy 49 When your bankruptcy petition is prepared and signed by you, it is filed with the Bankruptcy Court You are assigned a case number and a Trustee Normally, there is only one Chapter 13 Trustee who makes decisions on all Chapter 13’s filed in his/her jurisdiction In a Chapter 7, there may be more than one Trustee, called an “interim” as well as a “trustee.” DEBT SHEET Feel free to print out more of these forms if you need them For every creditor you owe, you must provide the date you originally obtained the debt If the debt is for a credit card, you must provide the last date you charged on the credit card If you cannot remember the exact date, just provide a date within a 2-year time span; even just a year, like 1998 or 1999 is fine Zip codes of the creditors is also essential because the software program used to produce the bankruptcy petition requires this information before a creditor can be added Name of who you owe Address City State Zip Has this debt been turned over to a collection agency? If so, provide their name and address below: Collection Agency Name Address City State Zip Total amount you owe $ Account Number Date originally obtained the debt Date last charged on this account Normal Monthly Payment Amount How many months are you behind? What is this debt for? (Medical, Credit Card, Car, Home, TV set, etc.) Whose name is the debt under? (Husband, Wife, Both, or is it cosigned?) Name of who you owe Address City State Zip Has this debt been turned over to a collection agency? If so, provide their name and address below: Collection Agency Name Address City State Zip Total amount you owe $ Account Number Date originally obtained the debt Date last charged on this account Normal Monthly Payment Amount How many months are you behind? What is this debt for? (Medical, Credit Card, Car, Home, TV set, etc.) Whose name is the debt under? (Husband, Wife, Both, or is it cosigned?) Name of who you owe Address City State Zip Has this debt been turned over to a collection agency? If so, provide their name and address below: Collection Agency Name Address City State Zip Total amount you owe $ Account Number Date originally obtained the debt Date last charged on this account Normal Monthly Payment Amount How many months are you behind? What is this debt for? (Medical, Credit Card, Car, Home, TV set, etc.) Whose name is the debt under? (Husband, Wife, Both, or is it cosigned?) Name of who you owe Address City State Zip Has this debt been turned over to a collection agency? If so, provide their name and address below: Collection Agency Name Address City State Zip Total amount you owe $ Account Number Date originally obtained the debt Date last charged on this account Normal Monthly Payment Amount How many months are you behind? What is this debt for? (Medical, Credit Card, Car, Home, TV set, etc.) Whose name is the debt under? (Husband, Wife, Both, or is it cosigned?) Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ INCOME HISTORY Debtor’s Name Year-to-Date Total from current paycheck stub? Gross Income 2000 Gross Income 1999 Employer’s Name Address City, State, Zip Telephone Number Length of Time at This Job? Job Title How often you get paid? (check one) o every week o bi-weekly (sometimes I get paid times a month o semi-monthly (on the same days of each month) o once a month Debtor’s Name Year-to-Date Total from current paycheck stub? Gross Income 2000 Gross Income 1999 Employer’s Name Address City, State, Zip Telephone Number Length of Time at This Job? Job Title How often you get paid? (check one) o every week o bi-weekly (sometimes I get paid times a month o semi-monthly (on the same days of each month) o once a month Gross wages before deductions Estimated overtime and commissions Taxes deducted (FICA, Federal, State, Local) Insurance Union Dues Alimony or Child Support Other: Take Home Pay after all deductions Regular income from the operation of business or profession or farm Income from real property (rentals) Interests and Dividends Alimony or Child Support received Social Security Government Assistance Food Stamps Public Assistance Pension or Retirement Other Income Do you have a slow season at work or a regular lay off? o Yes o No If yes, what months are slow or lay off months? How much is your pay reduced? Do you have a second job? o Yes o No If yes, Employer’s Name Address City, State, Zip How often are you paid? Gross wages before deductions Estimated overtime and commissions Taxes deducted (FICA, Federal, State, Local) Insurance Union Dues Alimony or Child Support Other: Take Home Pay after all deductions Regular income from the operation of business or profession or farm Income from real property (rentals) Interests and Dividends Alimony or Child Support received Social Security Government Assistance Food Stamps Public Assistance Pension or Retirement Other Income Do you have a slow season at work or a regular lay off? o Yes o No If yes, what months are slow or lay off months? How much is your pay reduced? Do you have a second job? o Yes o No If yes, Employer’s Name Address City, State, Zip How often are you paid? o every week o bi-weekly (sometimes I get paid times a month o semi-monthly (on the same days of each month) o once a month Gross Wages (second job) Take Home Pay (second job) o every week o bi-weekly (sometimes I get paid times a month o semi-monthly (on the same days of each month) o once a month Gross Wages (second job) Take Home Pay (second job) Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ MONTHLY BUDGET This form is necessary to determine how much you spend each month on living expenses Be sure to write in the MONTHLY (not weekly) amounts in the spaces below each expenditure For utilities, your bill may be higher in the winter than in the summer, so write an amount that is “average” covering the whole 12 month period Housing Expenses Are real estate taxes included in your mortgage payment? o Yes o No Is your home insurance included in your mortgage payment? o Yes o No First Mortgage, rent or mobile home monthly payment Second mortgage (if applicable) Third mortgage (if applicable) Lot Payment Taxes not included in house payment Utilities Electricity and Gas Water Telephone Trash Pick-Up Basic Needs Home Maintenance Food Clothing Laundry, dry cleaning Medical expenses not paid by insurance Transportation Gasoline Automobile maintenance Recreation, Entertainment Charitable Giving (if claimed on taxes) Insurance Homeowners or Renters Life Insurance Health Insurance Automobile Insurance Other Insurance Taxes Are any other taxes deducted from your wages? If so, what type of taxes are they? Other Expenses Alimony or Child Support Payments for someone outside your home Union Dues Professional Dues Child Care Expenses Babysitter/Day Care Expenses School Expenses School Lunch Expenses Newspapers, Books, Magazines Personal Care Items Other Other Note: Please note that some (or all) of these expenses may be adjusted to adhere to Bankruptcy Codes For instance, a couple with no children cannot submit $1,000 in monthly expenses for recreation and entertainment However, the average person does not know this type of information Unless you are familiar with and have studied Bankruptcy Code rules, you would have no idea how to adjust your budget to comply with these rules This is just one example to show you how the bankruptcy kits sold in chain stores normally not work well for most folks People filing their own bankruptcy, and unfamiliar with the rules and regulations of Bankruptcy Code, will probably have their petition rejected by the Trustee If this happens, the person will lose the $200 or $185 filing fee they spent to file their petition in court So often times, those bankruptcy kits can be a costly lesson Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ ASSET CHECKLIST The following 16 pages contain extremely important questions that are necessary for the proper completion and filing of your bankruptcy petition Every detail is important, so make sure you go over every question thoroughly and provide as much detail as possible to the questions you answer “yes” to Do you own, or are you buying real estate? o Yes o No Address/Description of Property Name of First Mortgage Company Address of Mortgage Company City, State and Zip Code Account Number Date Obtained Loan Total Owed Monthly Payment If you are behind in payments, please provide the name of the months you are behind: (i.e., November, December, January, etc.): Name of Second Mortgage Company Address of Mortgage Company City, State and Zip Code Account Number Date Obtained Loan Total Owed Monthly Payment If you are behind in payments, please provide the name of the months you are behind: (i.e., November, December, January, etc.): If you have a third or fourth mortgage company, list their information on the debt sheet (Page 2) Do you own, or are you buying any other real estate? o Yes o No Address/Description of Property Name of Mortgage Company Address of Mortgage Company City, State and Zip Code Account Number Date Obtained Loan Total Owed Monthly Payment If you are behind in payments, please provide the name of the months you are behind: (i.e., November, December, January, etc.): Do you share the ownership of any real property with another person, such as a co-tenancy or joint tenancy? (This does not apply to your spouse.) o Yes o No If so, provide details: Do you have a future interest in any real estate, such as putting money down on a property you have not purchased yet? o Yes o No If so, provide details: Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Do you own or are you buying a time-share in a vacation property or resort? o Yes o No If so, provide details: Do you own, or are you buying a mobile home? o Yes o No Address/Description of Property Name of Mortgage Company Address of Mortgage Company City, State and Zip Code Account Number Date Obtained Loan Total Owed Monthly Payment If you are behind in payments, please provide the name of the months you are behind: (i.e., November, December, January, etc.): Do you own, or are you buying any cars, motorcycles, trucks, motorcycles, boats, trailers, campers, etc.? o Yes o No If yes, write the year, make and model of the motor vehicle on the Debt Sheet (Page 2) when you write the name and address of the creditor Also provide the total amount owed to pay off your motor vehicle, the monthly payment, if you are behind in payments, the date you obtained the loan AND write in the word “Lease” if you are leasing this motor vehicle Do you own any cars, motorcycles, trucks, motorcycles, boats, trailers, campers, Free and Clear (completely paid off)? o Yes o No Year, Make, Model of Clear Titled Vehicle Year, Make, Model of Clear Titled Vehicle Year, Make, Model of Clear Titled Vehicle Do you have a car, truck, motorcycle, boat or camper that doesn’t run? Year, Make, Model of Vehicle Year, Make, Model of Vehicle o Yes o No Do you have a car, truck, motorcycle, boat or camper in your possession titled in someone else’s name? o Yes o No Year, Make, Model of Vehicle Whose name is the motor vehicle titled to? What is this person’s relationship to you? Estimate the quick sale value of all the furniture and appliances you own? (Remember, to provide a “garage sale [low]” value, not “replacement” value: Are you buying any of your furniture or appliances with installment payments? o Yes o No Description of Item ** Be sure to list the name, address and other information about this creditor on Debt Sheet Are you renting-to-own any of your furniture or appliances? o Yes o No Description of Item ** Be sure to list the name, address and other information about this creditor on Debt Sheet Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Have you gone to a loan company or bank and listed any of your furniture, appliances or personal possessions at the time you obtained the loan? o Yes o No Description of Item ** Be sure to list the name, address and other information about this creditor on Debt Sheet Estimate the quick sale value of your clothing, personal objects and jewelry (valued under $200)? (Remember, to provide a “garage sale [low]” value, not “replacement” value: Do you own any books, prints, pictures, stamps, coins, jewelry or sporting equipment which you could sell for $200 or more? o Yes o No Description of Item Value of the item if sold at a flea market or yard sale Description of Item Value of the item if sold at a flea market or yard sale Do you own or are you buying any tools or equipment that you use for your work? o Yes o No Description of Item Value of the item if sold at a flea market or yard sale At present, you have any inventory (stock in trade) that could be sold for $200 or more in profit? o Yes o No Description of Item Value of the item if sold at a flea market or yard sale Are you buying any jewelry with installment payments? o Yes o No Description of Item Value of the item if sold at a flea market or yard sale ** Be sure to list the name, address and other information about this creditor on Debt Sheet Do you own any guns? o Yes o No Description of Item Value of the item if sold at a flea market or yard sale Do you have any animals, livestock or pets you could sell for $200 or more? o Yes o No Description of Animal(s) Value of the animals if you had to sell them Do you have any checking or savings account(s) at this time? o Yes o No Name of Bank Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Name of Bank Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Are you a member of a credit union? o Yes o No Name of Credit Union Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Do you have a Christmas Club Account or any other special purpose accounts? o Yes o No Name of Financial Institution Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Have you closed a checking or savings account during the past two (2) years with any bank, credit union or other financial institution? o Yes o No Name of Financial Institution Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance ** If you closed the account owing a balance, list this as a debt on your Debt Sheet Do you have any life insurance either through your work or on your own? o Yes o No Name of Insurance Company Does your policy have a cash value? In other words, could you borrow money against your policy or make a cash withdrawal? If so, provide the current amount you could obtain if you borrowed against your insurance policy at this present time, or if you withdrew a cash settlement: Even if you are not vested, is there a retirement/pension plan at your work? o Yes o No Type of retirement (i.e., 401-K, PERS, etc.) Does your retirement presently have a cash value? In other words, could you borrow money against your retirement plan or make a cash withdrawal? If so, provide the current amount you could obtain if you borrowed against your plan at this present time, or if you withdrew a cash settlement: Besides retirement/pension, is there a separate profit-sharing plan at your work? o Yes o No Type of stock, bond, etc (i.e., 401-K, PERS, etc.) Have you set up your own separate retirement separate from work? o Yes o No Name of Financial Institution (if applicable) Will you be receiving retirement benefits from a previous employer within the next six (6) months? o Yes o No Date you expect to start receiving retirement benefits: Are you receiving any proceeds for retirement at this time? o Yes o No ** If yes, please state the amount you receive monthly on the Income Sheet, Page of this kit Do you have any stocks, bonds (including savings bonds) or mutual funds? o Yes o No Type of bond, stock, mutual fund: Does this bond, stock or mutual fund have a cash value? In other words, could you borrow money and use it for collateral, or could you cash it in for money? If so, what amount? Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Even if you never expect to collect any money, does an ex-spouse owe you money for alimony or child support? o Yes o No Name of Ex-Spouse Address of Ex-Spouse Total amount he/she owes you Date originally started owing you Has this ex-spouse been court ordered to pay you? Over the last year, have you, your children or your spouse been involved in an accident where someone was hurt, for example, a car accident? o Yes o No Date accident occurred Who was at fault? Who was involved in the accident? Was any insurance money received? o Yes o No If yes, how much? During the next six (6) months, you expect to inherit anything? o Yes o No Details and Amount During the next six (6) months, you expect to recover on anyone’s life insurance policy? o Yes o No Details and Amount Do you expect to receive any money from any insurance claim, for any reason, during the next six (6) months? o Yes o No Details and Amount Are you the beneficiary of a trust fund? o Yes o No Details and Amount Are you owed any back wages, commissions, or vacation pay from your current or previous employer? o Yes o No Employer Name and Amount Is any of your property in the hands of a repairman, storage company or pawnbroker? o Yes o No Name of Place Holding Your Property Address City, State, Zip Description of Items How much would it cost to get these items back in your possession? In the near future, you expect to settle, win or begin a case for personal injury? o Yes o No Details and Amount In the near future, you expect to enter into any property settlement with a former spouse? o Yes o No Details and Amount Does anyone owe you any money for a judgment you have obtained against them? o Yes o No Details and Amount Page of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Even if you never expect to collect, does anyone owe you any money for any reason whatsoever? o Yes o No Name of Person who owes you money Address of Person who owes you money City, State, Zip of Person who owes you money Explain why they owe you money: Why don’t you feel you will ever be able to collect this money? Amount they owe you Date they originally owed you Have you made any payments on your loans or bills other than ordinary payments? In other words, have you made catch-up payments, paid off or borrowed to pay on or off bills or loans? o Yes o No Name of Creditor You Paid Date Paid Amount Paid Current Balance Due Name of Creditor You Paid Date Paid Amount Paid Current Balance Due Are there any lawsuits pending against you now? o Yes o No Who is currently suing you? Attorney’s name and address assigned to the case (if applicable): What is the case number on the court document? ** Please include a copy of this document when you return this form Have your wages or property been garnisheed or attached? o Yes o No Who garnisheed your wages or attached your property? When did they take the property or start the garnishment? How much money they take from your paycheck and how often? Have you returned any property to creditors or was any of your property repossessed from you, sold at foreclosure, transferred through a deed or returned to a seller? o Yes o No What property did you turn over to a received? When and where did this take place? Has any of your property been assigned for the benefit of your creditors? o Yes o No Which creditor did you make an assignment to? When did you make the assignment to this creditor? What property did you assign to the creditor? Is any of your property in receivership or other legal custody? o Yes o No When did you file your receivership? In what court was this done? Have you made any extraordinary gifts? o Yes o No What extraordinary gifts or transfers have you made? Who did you give the gift to? What is their address? What date/year did you make the gift? What is the approximate value? Page 10 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Have you transferred any money or property to family members or friends or paid them any money on debts you might owe them? o Yes o No Type of property transferred: What date/year was it transferred? What is the approximate value? Have you have any unusual losses, such as fire, theft, gambling or otherwise? o Yes o No What item(s) were lost? What date/year was it lost? Amount insurance paid? Have you had any losses covered by insurance? o Yes o No Describe loss: Date/year of loss? Amount insurance paid? Have you consulted with any other attorney about your financial affairs or paid money to a debt counseling service? o Yes o No Name of attorney or service Consultation Date Money paid for service Have you filed any bankruptcy within the last six (6) years? o Yes o No Did you file a Chapter 7, Chapter 13, or a Chapter 11? Date your bankruptcy was filed? City, State Filed? Name(s) of persons who filed? Was the case discharged? o Yes o No Case Number Have you closed any bank accounts within the past two (2) years? o Yes o No Name of Bank Address of Bank City, State, Zip Code of Bank Account Number Date Closed Name on Account Did you owe a balance when you closed this account? o Yes o No Amount? Do you or have you rented a safe deposit box during the past two (2) years? o Yes o No Name of Financial Institution Address of Financial Institution City, State, Zip of Financial Institution Account Holder’s Name and Address What are the contents of the safe deposit box? List all persons and their addresses, who have access to the safe deposit box: If you no longer have the safe deposit box, when did you surrender it? If you transferred the safe deposit box, when and to whom did you transfer (Please also provide this person’s complete mailing address.) Page 11 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ Are you holding any property that belongs to someone else? o Yes o No Item(s) in your possession: Name and address of person these items belong to: Is anyone holding any property that belongs to you? o Yes o No Item(s) in someone else’s possession that belong to you? Name and address of person holding these items belonging to you? Have you lived at any other residence (other than your current address) within the past six (6) years? o Yes o No Address lived at: Name(s) of party living at this address: Time period lived at this address: From (date/year) To (date/year) Address lived at: Name(s) of party living at this address: Time period lived at this address: From (date/year) To (date/year) Have you been self-employed or had any financial interest in any business (or been involved in a partnership with someone who owned a business) within the past six (6) years? o Yes o No Name of business Business address Type of business (what was sold)? Date business began Date business ended Name of your partners, co-investors, or associates? What were your net profits for 2001? 2000? 1999? During the past two (2) years, have either you or your spouse had any other income source outside normal pay from your employer? (includes flea market dealers) o Yes o No Income 2001? 2000? 1999? Do you expect to receive a tax refund this year? o Yes o No Amount of tax refund anticipated? What is the income you and your spouse received from your employer during the past two (2) years? (For year-to-date total, refer to your current paycheck stub.) Name (husband or wife name) Year-to-date 2001 = 2000 = 1999 = Name (husband or wife name) Year-to-date 2001 = 2000 = 1999 = By signing below, I state that all the information provided in the eight (8) pages of the “Asset Checklist” is true and correct to the best of my knowledge Signature of Debtor #1 Signature of Debtor #2 Page 12 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ DUTY TO DISCLOSE ALL ASSETS The bankruptcy preparer, Victoria Ring, has advised me/us, and I/we understand, that it is my/our obligation as a debtor(s) seeking protection before the Bankruptcy Court, to disclose every asset I/we own OR have a right to claim I/we understand that asset is broadly defined and includes, but IS NOT LIMITED TO such things as: o o o o o o o o o o o o Any interest in real property (Land) Any titled vehicle including mobile home Any non-titled vehicle including motorcycle, & wheelers, trailers, etc Cash Monies on deposit with a bank or financial institution Any and all claims including but not limited to personal injury, general torts, future interests in life estates, interest in death benefits of life insurance policies or trusts Claims for medical or other professional malpractice Settlements due to alimony, support and property settlement Tax refunds Retirement accounts, IRA, bonds, stocks, annuities Account receivables Boats, motors and accessories I/we understand that this obligation is enforceable under both the penalty of perjury and criminal statute I/we acknowledge that I/we have disclosed to my/our bankruptcy preparer all of my/our assets Date: Debtor (Husband) Debtor (Wife) Page 13 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ DUTY TO DISCLOSE ALL CREDITORS The bankruptcy petition preparer, Victoria Ring, has advised me/us, and I/we understand, that it is my/our obligation as a debtor(s) seeking protection before the Bankruptcy Court, to disclose every debt that I/we owe to any person, company or institution, regardless of the amount owed or the purposes for which the obligation was incurred I/we understand that this obligation is enforceable under both the penalty of perjury and criminal statute I/we acknowledge that to the best of my/our ability that I/we have disclosed to Victoria Ring all of my/our creditors as detailed on the forms in this bankruptcy kit Date: Debtor (Husband) Debtor (Wife) Page 14 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ AGREEMENT By signing this agreement I understand that Victoria Ring, located at 1128 King Avenue, Columbus, Ohio 43212 is a non-attorney bankruptcy preparer By requesting and/or employing the services of Victoria Ring, I acknowledge and agree to the following: No information provided by Victoria Ring is intended to be legal advice or recommendation for action, nor should any information provided be construed as such advice or recommendation Victoria Ring’s knowledge is compiled from training received from individual attorney’s specializing in bankruptcy law, her day-to-day knowledge working with bankruptcy law and her knowledge of preparing 100’s of bankruptcy petitions I understand that all legal advice must be obtained from an attorney licensed to practice law in my state I agree to indemnify and hold harmless Victoria Ring, against any claim, liability, loss, or expenses, including but not limited to attorney’s fees and court costs, arising directly or indirectly from use of the services provided I also assume all liability for costs involved in collection of fees due, including attorney’s fees, court costs, account maintenance, and other collection expenses Victoria Ring’s liability in all instances are limited to the cost of the forms provided, and under no circumstances will Victoria Ring be responsible for other fees or costs incurred by myself and/or spouse Victoria Ring further agrees to prepare me a complete bankruptcy petition, ready to file in court in the jurisdiction I reside in for a cost of Eight Nine Dollars and Ninety-Nine Cents ($89.95.) Victoria Ring further pledges to contact me by telephone, fax, email or other means to obtain additional information, or to clarify information provided by me in order to prepare a correct bankruptcy petition I understand that this service is provided free of any additional charge By signing below, I agree to the statements made in this Agreement Debtor (Husband) Debtor (Wife) Date: Date: Page 15 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ ADDITIONAL DOCUMENTS YOU NEED TO SEND TO VICTORIA RING TO PREPARE YOUR NON-ATTORNEY BANKRUPTCY PETITION NOTE: Do not send original documents through the mail Make a copy of them The copies will be returned to you with your completed bankruptcy petition Vehicle Titles and Proof of Insurance (if applicable) If you own or are purchasing any motor vehicles (cars, boats, motorcycles, mobile home, etc.) you must enclose a copy of the title as well as a copy of the front page of your insurance policy (if insurance is required in your state.) Real Estate Mortgage and Deed and Proof of Insurance (if applicable) If you own or are purchasing real estate, a home, apartment building, condominium, etc you will need to go to the Clerk of Courts office in your county and obtain a copy of the Recorded Deed This will cost about $2 The deed you have in your possession is NOT a “recorded deed” because it has not been notarized In addition, enclose a copy of your mortgage papers as well as proof of insurance on your real estate Lawsuits Are there any lawsuits pending against you for any reason? Make a copy of the lawsuit and send it with your completed forms The case heading and caption are needed to list on your bankruptcy petition Lease Papers or Other Contracts If you are leasing a motor vehicle or entered into a contract for a cell phone, pager, satellite service, alarm system, etc., enclose copies of these papers This is necessary to determine the contract length, monthly payments and other necessary information for the bankruptcy petition Small Business Owners If you have made any money running a home or small business within the past two (2) years, enclose a sheet of paper detailing the average monthly income for the business and the average amount of expenditures you had in running the business A copy of your tax return showing these expenses would be fine, but if you only reported it as “additional income” on your taxes, a simple sheet of paper detailing the income and expenses will just as well Payment Return all the completed forms (total of 16 pages) along with your check or money order for $89.95 to: Victoria Ring, Bankruptcy Paralegal, 1128 King Avenue, Columbus, Ohio 43212 or email her personally at bankruptcy@columbus.rr.com for any additional information Page 16 of 16 Information Gathering Sheets for Bankruptcy Petition Preparer Designed by Victoria Ring, http://www.victoriaring.com/bankruptcy/ ... My best to you, Victoria Ring Victoria Ring Bankruptcy Paralegal ? ?102 Things You Need to Know Before You File Bankruptcy? ?? Page Guidelines If you are considering filing for bankruptcy, you are... allows you to keep these types of items by allowing you exemptions on them When anything you own is totally exempt from ? ?102 Things You Need to Know Before You File Bankruptcy? ?? Page the bankruptcy, ... if you don’t know anything about exemption allowances you will not know how to include them and your petition will be rejected or you may lose something you own ? ?102 Things You Need to Know Before