87 Things You Need to know Before You File Before You File

87 Things You Need to know Before You File Before You File

87 Things You Need to Know Before You File Bankruptcy Written and Published by Victoria Ring, Bankruptcy Paralegal 1601 W Fifth Avenue, #123 Columbus, Ohio USA Voice: (614) 486-7642 Fax: (614) 486-8840 updated April 22, 2002 email: victoria@victoriaring.com website: http://www.bankruptcyparalegalservices.com An Important Message to the Readers: This free ebook provides information 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 a qualified bankruptcy attorney No book, software, or other published material is a substitute for personalized advice from a knowledgeable attorney licensed to practice law in your state An Important Message to Legal Professionals: Since this book is provided free, you also have the author’s permission to reproduce it in any manner you feel will benefit your client base All that is required is that you mail a copy to Victoria Ring, 1601 W Fifth Ave #123, Columbus OH 43212-2303 Also, please email or call Victoria at 614-486-7642 if you would like a version of this book printed that is customized with your name and address This book may also be distributed over the internet as a PDF document as long as it is it not offered for sale Interested in Starting a Business? If you would like to offer bankruptcy petition preparation services in your area, we have developed a program which allows you to make extra money from your home There is no cost to get started Simply go to http://www.lawyerassistant.com to review our services for legal professionals Fill out the online form and you will receive a free personalized set of bankruptcy intake forms, customized with your name and address Make copies of the forms, charge the fee allowable in your state as a petition preparer and send the forms to us for processing Some legal professionals using our service charge as much as $200, pay us $99.95 and make a healthy $100 profit from each petition Please call Victoria Ring at 614-486-7642 after you have reviewed the website if you are interested in performing this service as a home business or add-on to your established practice Earn a $15.00 Referral Bonus: If you have a friend, relative or co-worker interested in filing bankruptcy, please make a copy of the forms in this book (starts on Page 16) and give them to fill out and return to us Be sure to write your name and address on the “Referred By” line at the top of the GENERAL INFORMATION form When we receive the petition with your name and address on the “Referred By” line, we send you a $15.00 referral bonus check There is no limit to the number of referral checks you can receive, so if you like our service get paid for it by referring clients to us TABLE OF CONTENTS Page Who Will Benefit From This Information Overview Free Forms Included Paid Services How to Determine if you Should Hire Victoria Ring to Prepare Your Bankruptcy Petition Summary of Skills and Experience of Victoria Ring How Hard is it to File a Bankruptcy Petition? Some Terms You Need to Know Concerning Bankruptcy Chapter Bankruptcy Chapter 13 Bankruptcy Changes in Payments During a Chapter 13 Bankruptcy Chapter 11 Bankruptcy Steps That Occur for Either a Chapter or Chapter 13 Bankrupcty Other Facts that You Need to Know Debts That Cannot Be Discharged The First Steps in Preparing a Bankruptcy Petition How Your Credit Will be Effected by Bankruptcy 11 Other General Questions and Answers 11 Websites to Help you Learn More About Bankruptcy 14 Summary 15 Information-Gathering Forms for the preparation of Your Bankruptcy Petition 19 87 Things You Need to Know Before Filing Bankruptcy WHO WILL BENEFIT FROM THIS INFORMATION This ebook that you downloaded from the internet is 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 petition (b) Paralegals — legal professionals working for an attorney/boss who is considering offering bankruptcy services to clients and is unfamiliar with some of the basic procedures (c) Attorneys — legal professionals who not normally offer bankruptcy services to clients, but are interested in doing so The forms included in this ebook can be printed and used in your own law office as master intake interview forms for your own clients OVERVIEW A person just doesn’t wake up one morning and say, “Hey, I think I will file bankruptcy today.” Instead, it is normally a long process of worry, struggle and guilt before people reach this point However, the decision to file bankruptcy is the legal right of every citizen in the United States To give you a quick history lesson — the bankruptcy law is derived from the same type of laws the Jewish nation enacted back in the Old Testament period Every years their debts would be forgiven and they could start fresh (It was called the “Year of Jubilee.) These laws were not enacted because the society wanted to be “nice and sweet to people”; it was done because they knew that keeping people under debt forever was not good for their society as a whole By “forgiving” debts every years, those experiencing the heavy burden of debt could now afford to put money back into the economy and hopefully stay out of debt so the problem did not occur again — thereby causing the society as a whole to grow and prosper Our United States government knows that if there is no way to forgive heavy, burdensome debts, many people will eventually end up on welfare just to survive, thereby raising taxes, causing high unemployment, effecting prices and causing other companies to go out of business because the majority of people couldn’t afford to buy their products or much less, anything else — even if they wanted to This situation would eventually collapse the economy of our society Therefore, don’t believe everything your friends, neighbors and high-pressured debt relief companies tell you Instead, read the information in this ebook and ask questions of competent bankruptcy attorneys who are available free of charge on the internet or through a group of legal professionals such as Pre-Paid Legal (Most bankruptcy attorneys provide a free initial consultation, so feel free to consult with one about your particular financial situation who practices law in your state and jurisdiction.) Always remember that “fear of the unknown” is a natural reaction for human beings who are unsure about a subject However, this ebook was written to take the fear out of the word “bankruptcy.” 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 “87 Things You Need to Know Before You File Bankruptcy” Page 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 19 of this ebook, a complete set of intake interview 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 and have Victoria Ring prepare your official bankruptcy petition You may also use them to “sort out” your financial situation or take with you to a free consultation with the attorney of your choice Or, if you are an attorney or paralegal, you have the author’s permission to print out the forms, remove Victoria’s name from them and use them for your own law office for your own clients PAID SERVICES Victoria Ring is employed as a full-time bankruptcy paralegal for a medium-sized law firm in Columbus, Ohio She has experience working on the debtor, as well as the creditor “side of the fence,” and is very knowledgable in many areas of bankruptcy In an effort to “give back” to the legal community and to help the average consumer, Victoria provides pro bono services over the internet to low-income or no-asset individuals and families for a fee of $99.95 This fee is then donated or given back to the legal community and/or Christian organizations Victoria has chosen to support, depending on the current need In this manner, Victoria Ring can remain bias and not violate any laws relating to the unauthorized practice of law, which is not her intention in any way HOW TO DETERMINE IF YOU SHOULD HIRE VICTORIA TO PREPARE YOUR BANKRUPTCY PETITION: As stated before, Victoria Ring is a bankruptcy paralegal If she reviews your intake forms (included in this ebook) and determines that your case may require litigation that only an attorney can provide, she will return your intake forms and payment with a letter explaining why she has made this decision The best way to determine if hiring Victoria as a bankruptcy paralegal to prepare your bankruptcy petition paperwork is by using the following guidelines: Do you have less than $500 per month left after you pay your normal living expenses (rent, car payment, food, clothing, insurance and utilities)? Do your debts mainly consist of credit cards, medical bills, repossessions, and/or wage garnishments? Have you recently lost your job, or had a decrease in your normal income? Have you recently divorced or separated from your spouse and the debts are too much for you to handle? However, if you own several automobiles with a market value of $1,500 or more each, own several properties, have a large amount in a 401K or other investment, own expensive furs and jewelry, or have collectibles, art and other items that have a high cash value — I strongly urge you to seek the advice of a bankruptcy attorney in your area (Check your local phone directory and call each one until you locate an attorney that specializes in bankruptcy law; preferably one that does nothing except debtor bankruptcy.) “87 Things You Need to Know Before You File Bankruptcy” Page The reason for this is because if you have a large amount of money in assets (items you own free and clear), you may be asked to have those items appraised and a portion of that money paid by you to satisfy some of the creditors you owe money to In a situation like that, a good bankruptcy attorney can help you to protect more of your assets than a paralegal has power to But, regardless of your financial situation, I hope you enjoy reading this ebook because it will help you understand about bankruptcy Then you can decide which direction is best for you to go in at this time OnLine Information Visit the website of your local bankruptcy court, take the virtual consumer tour, read bankruptcy articles, questions and answers from consumers, purchase a training CD for your paralegal and a lot more Visit: http://www.bankruptcyparalegalservices.com/ Short Resume of Victoria Ring Summary of Skills: Typing speed of 95-110 words per minute with 97% accuracy rate 22 years of part-time, full-time and independent contract experience with a variety of law firms years of solid experience in bankruptcy law as a paralegal 19 years experience in administrative and office management, business operations, organization, communication and customer/employee relations Author and publisher of 17 booklets, full-length videos and training CDs Seminar speaker and paralegal trainer for debtor bankruptcy topics Educational Background: Constitutional Educational Research Foundation (CERF), Paralegal Certificate Ashworth College, Associates Degree in Paralegal Studies Columbus Business University, Major: Business Management, Minor: Accounting After graduation from Columbus Business University, was employed as instructor for the Secretarial Procedures class for semesters Affiliations: Columbus Bar Association, associate paralegal member since 2000 Paralegal Association of Central Ohio, served on the Board of Directors as editor of The Citator for one term National Federation of Paralegal Associations National Notary Association Licensed as a Notary Public in the state of Ohio “87 Things You Need to Know Before You File Bankruptcy” Page HOW HARD IS IT TO FILE BANKRUPTCY? Filing a bankruptcy petition is as simple as taking the original and four (4) copies of your entire bankruptcy petition to the Bankruptcy court in your area You will simply walk up to the desk of the Clerk of Court, hand him/her your paperwork and pay the required filing fee (Chapter 7, $200; Chapter 13, $185.) The Clerk will look through your petition to make sure you have all the papers in order He/she will then place them into a machine that stamps the current date and time (Some smaller courts use a hand stamp and others use a rubber stamp and hand write the date and time on the blank line.) The Clerk will keep the original and 2-3 copies for their own use They will hand you back the extra copies for you to keep and make copies of (if needed) by creditors who request it A Judge will also be assigned to your case at this time The whole process of filing your own bankruptcy petition normally only takes about 10 minutes to complete (about the same amount of time it takes to renew your driver’s license.) But the very moment your bankruptcy petition is stamped with the date and time by the Bankruptcy Court, you have just put into effect a type of “umbrella” for yourself This is called the “bankruptcy stay” law What this means is that: Any company or person(s) you owe money to is not permitted to contact you in any way (once they receive notice in the mail from the court) without petitioning the Bankruptcy Court to remove the “bankruptcy stay” (which you would have advance notice of, if it occurred, and be allowed time to answer the motion.) 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 Any foreclosure or replevin action currently taking place on your home or other real property is stopped Money judgments cannot be collected from you but the creditor may petition the court to remove the “bankruptcy stay” (depending on the circumstance) in order to try and repossess the home or piece of real property Any Sheriff’s sales are stopped immediately Any taxes you owe that are currently being collected on by the government are put on hold (while your debts are being reorganized.) Any individual or company who is in the process of repossessing your auto, boat, furniture, appliances, or anything else you own are stopped immediately and they cannot remove anything without the Bankruptcy Court’s permission SOME TERMS YOU NEED TO KNOW CONCERNING BANKRUPTCY Creditor — This is the person or company you owe money to because they extended credit to you Debtor — This is YOU You owe debts, so you are a debtor 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 “87 Things You Need to Know Before You File Bankruptcy” Page 10 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.) 11 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 12 Discharge — This is what happens when your debts are erased and you have completed your bankruptcy 13 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 Each state has it’s own exemption allowances However, when anything you own is totally exempt from the bankruptcy, no one can take it away from you 14 Automatic Stay — We covered this before, but to reinterate, 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 person or company under the Bankruptcy law in the United States 15 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 you filed your bankruptcy petition If a creditor is granted a “Relief from Stay,” the debtor (you) 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.) 16 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 The creditor (i.e., Bob’s Auto Sales) will normally send you an Agreement to sign and mail back to them In turn, they will sign it and send to the bankruptcy court for filing This assures the creditor that they will receive all money you owe them 17 Trustee — This is a real “live” person that works for the Bankruptcy Court When you attend your first hearing, you will meet the Trustee assigned to your case He/she will review your bankruptcy petition, ask you some questions, ask questions of any creditors who may be present, and then tell you if he/she needs any additional documents from you before recommending your case for confirmation to the Judge 18 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 “87 Things You Need to Know Before You File Bankruptcy” Page 19 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 20 In order to be eligible to file a Chapter bankruptcy, you must be able to meet the following 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 21 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 example, alimony, student loans, child support and taxes that are less than years old are non-dischargeable and must be repaid in full 22 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.) CHAPTER 13 BANKRUPTCY 23 In order to be eligible to file a Chapter 13 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 • 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 24 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 25 A Chapter 13 is NOT a bill consolidation loan, although many people look at it that way Although it is a similar con- “87 Things You Need to Know Before You File Bankruptcy” Page cept, a bill consolidation loan is money actually loaned to you to repay other creditors and you in turn pay back the lender In a Chapter 13, no money is loaned to you because you make your monthly payments to the Bankruptcy Trustee, who disburses the money among your creditors No money is loaned to you 26 Your priority claims are paid first in a Chapter 13 Priority claims include debts for things like taxes, child support, etc 27 The amount you owe unsecured creditors, like medical bills, credit cards, etc can normally be paid back as low as 10¢ 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.) 28 You are 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 29 Your attorney or paralegal will also file a Chapter 13 Plan with your bankruptcy petition that details the amount of your monthly payments and the length of time you are going to be in the Chapter 13 Plan 30 This amount you pay each month to the Trustee is determined by the amount of money you currently make and how much money you need to live on each month A good Chapter 13 bankruptcy attorney or his paralegal is skilled at balancing these two figures so you can easily afford the Chapter 13 payment each month It is not to the advantage of the attorney or paralegal to give you a payment you can’t afford This would cause problems later down the road So don’t be afraid that your payment will be too high for you to afford CHANGES IN PAYMENTS DURING A CHAPTER 13 BANKRUPTCY 31 Nothing stays the same During the 3-5 years that you are making regular payments to the Chapter 13 Trustee anything could happen You may lose your job Your spouse may lose their job You may have a new baby, which brings on added expenses You may inherit some money Your old car may conk out and you will have to replace it in order to continue getting back and forth to work In fact — a million different things could happen, which means your Chapter 13 payment can be lowered or raised depending on the circumstance For most people, when something occurs where they cannot make a Chapter 13 payment one month, will simply not pay it This is a very bad idea All you need to is contact your attorney and ask them to file a Motion to Modify the Chapter 13 Plan You will need to go to their office and supply the attorney with new, updated income and budget information, which explains why you cannot make your normal Chapter 13 payment It will take a couple of months to get all the paperwork approved through court, but it will save you from defaulting on your Chapter 13 payments 32 If you need to go into debt and purchase something on credit while you are going through a Chapter 13 bankruptcy, your attorney can file a Motion to Incur Debt for you This will allow you the needed money to purchase the item (Example: Sell one car and purchase another one.) CHAPTER 11 BANKRUPTCY 33 Chapter 11 is similar to a Chapter 13, but it is used by larger businesses or individuals with a large amount of assets or debts that exceed one million dollars In a Chapter 11 bankruptcy you are allowed to still operate your business but your creditors and the court must approve a plan to repay your debts There is no Trustee HOME BASED BUSINESS OWNERS If you have operated a business inside your home, or owned a small business that does not qualify for filing under Chapter 11 of the Bankruptcy Code, an Exhibit will be prepared for the Trustee overseeing your case Please list below the normal income and expenses your business generated for an average month If you did not have an average monthly income due to extreme highs and lows in your business, estimate your total yearly income and divide by 12 to get the average monthly income Use the same method of determining your average monthly expenses and enter into the spaces below: $ Average monthly business income Did you withhold any earnings for tax purposes? Yes No If yes, how much did you withhold monthly? $ Average monthly business expenses (if applicable) Rent and utilities $ Office Supplies $ Product Supplies $ Wages $ Equipment Leases $ Other Business Leases $ Other $ Other $ Other $ Other $ Other $ Other $ Other $ Other $ Total Average Monthly Income $ Total Average Monthly Expenses $ Average Monthly Business Profit $ Did you file income taxes for the years you operated your business? Yes No If not, what years did you NOT file taxes? http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 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 Taxes Are any other taxes deducted from your wages? If so, what type of taxes are they? $ _ Rent (not mortgage) First Mortgage, rent or mobile home monthly payment $ _ Second mortgage (if applicable) $ _ Other Expenses Third mortgage (if applicable) $ _ Lot Payment (if applicable) Are real estate taxes included in your mortgage payment? Yes Is your home insurance included in $ _ Alimony or Child Support Payments for someone outside your home $ _ Union Dues $ _ Professional Dues $ _ Child Care Expenses $ _ Babysitter/Day Care Expenses $ _ School Expenses $ _ your mortgage payment? $ _ Yes Taxes not included in house payment No No $ _ Utilities (Average monthly payment) $ _ Electricity and Gas $ _ School Lunch Expenses $ _ Water $ _ College Tuition (Not Loans) $ _ Telephone (Basic Service) $ _ Student Loan Repayment $ _ Trash Pick-Up $ _ Newspapers, Books, Magazines $ _ Personal Care Items $ _ Basic Needs Home Maintenance (home owners) $ _ Other $ _ Food (Monthly) $ _ Other $ _ Clothing (Monthly Expense) $ _ Laundry, dry cleaning, soap, etc $ _ Medical expenses not paid by insurance $ _ Transportation Gasoline $ _ Automobile maintenance $ _ Recreation, Entertainment $ _ Charitable Giving (if claimed on taxes) Use the space below to describe any additional monthly expenses that you must pay out of your pocket that are not covered here Explain the type of expense, amount of expense and how long you will continue to have this expense: $ _ Insurance Homeowners or Renters $ _ Life Insurance (other than employer) $ _ Health Insurance (other than employer) $ _ Automobile Insurance $ _ Other Insurance $ _ http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (1 of 9) The following pages contain extremely IMPORTANT QUESTIONS, many of which will be asked you again by the Trustee when you attend your first hearing Please take your time and go through 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? Yes 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 and note what it is Do you own, or are you buying any other real estate? Yes 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.) If so, provide details: Yes No Do you have a future interest in any real estate, such as putting money down on a property you have not purchased yet? If so, provide details: Yes No Yes No Do you own or are you buying a time-share in a vacation property or resort? If so, provide details: http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (2 of 9) Do you own, or are you buying a mobile home? Yes 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 have a car, truck, motorcycle, boat or camper that doesn’t run? Yes No Yes No Yes No Year, Make, Model of Vehicle Year, Make, Model of Vehicle Do you have a car, truck, motorcycle, boat or camper in your possession titled in someone else’s name? Year, Make, Model of Vehicle Whose name is the motor vehicle titled to? What is this person’s relationship to you? Are you buying any of your furniture or appliances with installment payments? Description of Item ** Remember 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? Yes No Description of Item ** Be sure to list the name, address and other information about this creditor on Debt Sheet 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? Yes No Description of Item ** Be sure to list the name, address and other information about this creditor on Debt Sheet Do you own or are you buying any tools or equipment that you use for your work? Yes No Description of Item Value of the item if sold at a flea market or yard sale http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (3 of 9) At present, you have any inventory (stock in trade) that could be sold for $200 or more in profit? Yes No Yes 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? 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 or other types of firearms? Yes No Yes No Yes No Yes 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? 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? Name of Bank Address/City/State/Zip of Bank: Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Name of Second Bank (if applicable) Address/City/State/Zip of Bank: Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Are you a member of a credit union? Name of Credit Union Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (4 of 9) Do you have a Christmas Club Account or any other special purpose accounts? Yes No Name of Financial Institution Type of account: Checking, Savings or Both? Name(s) on the Account Account Number Present Balance Do you currently have any security deposits being held by a utility company? If yes, what is the amount? Yes No Name of Utility Company: Address of Utility Company City, State and Zip Code of Utility Company Account Number Present Balance ** You may include past due utility bills in your bankruptcy, but you will have to reapply to the utility company as a new customer and pay a new deposit in order to establish service with their company Do you have any life insurance other than what your employer provides? Yes No Name of Insurance Company Does your policy have a cash value? Yes No If so, approximate 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? Yes No Type of retirement (i.e., 401-K, PERS, etc.) Does this account presently have a cash value? Yes No If so, approximate 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? Yes No Type of stock, bond, etc (i.e., 401-K, PERS, etc.) Have you set up your own separate retirement not provided by employer? Yes No Name of Financial Institution (if applicable) Will you be receiving retirement benefits from a previous employer within the next six (6) months? Yes No Date you expect to start receiving retirement benefits: http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (5 of 9) Are you receiving any proceeds for retirement at this time? Yes No Yes No Yes No ** If yes, please state the amount you receive monthly on the Income Sheet of these forms Do you have any stocks, bonds (including savings bonds) or mutual funds? Type of bond, stock, mutual fund: Does this bond, stock or mutual fund have a cash value? Yes No Cash value: Even if you never expect to collect any money, does an ex-spouse owe you money for alimony or child support? 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? How long? 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? Yes No Date accident occurred Who was at fault? Who was involved in the accident? Was any insurance money received? Yes No If yes, how much? During the next six (6) months, you expect to inherit anything? Yes No Details and Amount During the next six (6) months, you expect to recover on anyone’s life insurance policy? Yes No Yes No Yes No Yes No Details and Amount Do you expect to receive any money from any insurance claim, for any reason, during the next six (6) months? Details and Amount Are you the beneficiary of a trust fund? Details and Amount Are you owed any back wages, commissions, or vacation pay from your current or previous employer? Employer Name and Amount http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (6 of 9) Is any of your property in the hands of a repairman, storage company or pawnbroker? Yes No Name of Place Holding Your Property Address City, State, Zip Description of Items In the near future, you expect to settle, win or begin a case for personal injury? Yes No Details and Amount In the near future, you expect to enter into any property settlement with a former spouse? Yes No Details and Amount Does anyone owe you any money for a judgment you have obtained against them? Yes No Details and Amount Even if you never expect to collect, does anyone owe you any money for any reason whatsoever? Yes 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: Amount they owe you Date they originally started owing 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? Yes No Name of Creditor You Paid Date Paid Amount Paid Current Balance Due Amount Paid Current Balance Due Name of Creditor You Paid Date Paid Are there any lawsuits pending against you now? Yes 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 these forms http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (7 of 9) Have your wages or property been garnisheed or attached? Yes No Who garnisheed your wages or attached your property? When item did they take the property or what date did they 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? Yes 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? Yes No Yes No Yes No Yes No Yes No Yes No Which creditor did you make an assignment to? What date 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? When did you file your receivership? In what court was this done? Have you made any extraordinary gifts? What extraordinary gifts or transfers have you made? Who did you give the gift to? What date/year did you make the gift? What is the approximate value? Have you transferred any money or property to family members or friends or paid them any money on debts you might owe them? 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? What item(s) were lost? What date/year was it lost? Amount insurance paid? Have you had any losses covered by insurance? Describe loss: Date/year of loss? Amount insurance paid? http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (8 of 9) Have you consulted with any other attorney about your financial affairs or paid money to a debt counseling service? Yes No Yes No Yes No Name of attorney or service Consultation Date Money paid for service Have you filed any bankruptcy within the last six (6) years? 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? Yes No Case Number Have you closed any bank accounts within the past two (2) years? Name of Bank Address of Bank City, State, Zip Code of Bank Account Number Date Closed Did you owe a balance when you closed this account? Name on Account Yes No Balance owed: If you did not owe a balance when you closed this account, how much money did you receive? Do you or have you rented a safe deposit box during the past two (2) years? Yes 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? If you no longer have the safe deposit box, what date/year 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.) Are you holding any property that belongs to someone else? Yes No Yes No Item(s) in your possession: Name and address of person these items belong to: Is anyone holding any property that belongs to you? Item(s) in someone else’s possession that belong to you? http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 STATEMENT OF AFFAIRS (9 of 9) Name and address of person holding these items which belong to you? Have you lived at any other residence (other than your current address) within the past six (6) years? Yes No Address lived at: City State Time period lived at this address: From (date/year) Zip To (date/year) Address lived at: City State Time period lived at this address: From (date/year) Zip 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? Yes No Name of business Business address Type of business (what type of products were sold)? Date business began Date business ended Name of your partners, co-investors, or associates? What were your net profits for 2002? 2001? 2000? How much income tax you pay from the income you make with your business? 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) Yes No Income 2002? 2001? 2000? Do you expect to receive a tax refund this year? Amount of tax refund anticipated: Yes No When you expect to receive it? By signing below, I state that all the information provided in the pages of the “Statement of Affairs is true and correct to the best of my knowledge Signature of Debtor #1 Signature of Debtor #2 http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 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 Listing assets does not necessarily mean that the item(s) will be taken from you Instead, your assets will be reported on Schedule B of your bankruptcy petition to show an accurate reflection of your current financial situation I/we understand that the word “asset” is broadly defined and includes, but IS NOT LIMITED TO such things as: Any interest in real property (Land) Any titled vehicle including mobile home Any non-titled vehicle including motorcycle, & wheelers, trailers, etc Cash (savings and checking accounts, 401K’s, stocks, bonds, etc.) 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 by signing below Date Signed: Debtor #1 Debtor #2 (if applicable) http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 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 Note: Some people only submit these forms, listing the debts that want to file bankruptcy on and leave out debts that want to keep out of the bankruptcy Because a bankruptcy petition is a complete, and accurate picture of your current financial situation, everything you owe and everything you own must be recorded properly for the Bankruptcy Court If you wish to continue paying on a debt you owe (example: your car, home, furniture, credit card, etc.) then make sure you list it as a debt on the Debt Sheet but write the word “KEEP” beside the debt If your budget can afford to make the monthly payment, it will be included in your monthly budget The creditor may ask you to sign a Reaffirmation Agreement that states you will continue paying this debt, even though you are filing for bankruptcy relief I/we understand that the obligation to disclose all debts owed is enforceable under both the penalty of perjury and criminal statute In other words, if you not provide complete and accurate information for every debt you owe, you could be risk your bankruptcy being dismissed or even be subject to criminal charges by the Federal Court 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 package by signed my/our names below Date Signed: Debtor (Husband) Debtor (Wife) http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 AGREEMENT By signing this agreement I understand that Victoria Ring, located at 1601 W Fifth Ave #123, Columbus, Ohio 43212 is a non-attorney bankruptcy petition preparer By requesting and/or employing the services of Victoria Ring, you 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 working knowledge of bankruptcy law and her knowledge of preparing almost 1,800 bankruptcy petitions during the course of her career You understand that all legal advice must be obtained from an attorney licensed to practice law in your state You 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 You 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 yourself and/or spouse You understand that the $99.95 non-attorney bankruptcy preparation fee is non-refundable unless Victoria is unable to prepare your petition for any reason Victoria Ring agrees to provide the following services for the $99.95 fee mentioned above: Complete preparation of your entire bankruptcy petition This includes all Schedules, Forms, Voluntary Petition, Creditor’s Matrix, Summary of Schedules and 1015 Form if applicable to your state law or local rules Step-by-step instruction sheets specifically customized for you; providing you the address of where you are to file your bankruptcy petition at the Bankruptcy Court in your jurisdiction, general information about your 341 Creditor’s Meeting as well as your final Confirmation Hearing Preparation of wage garnishment letters that will STOP any unauthorized deductions from your future paychecks They are prepared for your signature and mailing 100% Guarantee that your bankruptcy petition will be accepted by the court as a complete, legal document Victoria Ring cannot guarantee you will receive a bankruptcy discharge This guarantee can only be provided by an attorney specializing in the are of bankruptcy law After you send in these forms to Victoria Ring for preparation of your bankruptcy petition, you can expect to receive a telephone call or email within 3-5 days after receipt If you cannot be reached by telephone or email, Victoria will write you a letter letting you know any additional information she needs to complete your bankruptcy petition If, in the meantime, your financial situation changes in any way, it is your responsibility to email or call Victoria immediately at 614-486-7642 or victoria@victoriaring.com so she can make any changes By signing below, you understand and agree to the statements made in this Agreement Debtor #1 Debtor #2 (if applicable) Date: Date: http://www.bankruptcyparalegalservices.com Fill out entirely and mail with your forms preparation fee of $99.95 to: Victoria Ring, Bankruptcy Paralegal, 1601 W Fifth Ave #123, Columbus OH 43212-2303 (614) 486-7642 OTHER USES FOR THESE FORMS The intake forms included in this package are not designed exclusively for our use Below are some suggested uses for these forms if you choose not to use our preparation service: Fill out the forms and take with you to your bankruptcy attorney’s office They will provide the attorney will all the necessary information to assess your financial position and provide you with a better level of legal advice It also will save you and the attorney a lot of time and may even reduce the attorney fee Fill out the forms and use the information to assess your own financial position You may find that you can pay your bills and may not have to file bankruptcy at all Make copies of the forms before you fill them out and pass them out to friends and relatives who may be interested in filing bankruptcy Write your name and address at the top of the “GENERAL INFORMATION” form (Page 1) in the space provided (Referred By: _.) We will send you a referral check of $15.00 for each bankruptcy petition we process to thank you for your recommendation If you are seeking to start your own business providing bankruptcy services to the general public, or if you are an attorney planning on expanding your business to include debtor bankruptcy services, please visit http://www.lawyerassistant.com and obtain your free intake forms customized with your name and address We discount our petition preparation service for legal professionals In addition, we provide a “Getting Started Package” for attorneys and paralegals if you prefer to process your own bankruptcy petitions This package contains a 2-hour training CD, bankruptcy software and a healthy supply of debtor and creditor pleadings to get your new business up and running within days For more information on this package go to http://www.bankruptcyparalegalservices.com/cds/ Thank you again for utilizing the services of Bankruptcy Paralegal Services We are unique in the fact that we never place “making a buck” over high-quality service While other companies may boost of this fact, the majority of them don’t “walk the walk.” Bankruptcy Paralegal Services was set up to be a personable, caring service for our clients If at any time, we not meet your highest expectations, please let us know about it immediately so we can fix the problem to your satisfaction Contact Information: Victoria Ring, President Bankruptcy Paralegal Services 1601 W Fifth Ave #123 Columbus, Ohio 43212-2303 (614) 486-7642 (24 hour answering machine) email: victoria@victoriaring.com http://www.bankruptcyparalegalservices.com/ ... 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 ? ?87 Things You Need to Know Before You File Bankruptcy”... bankruptcy you are allowed to still operate your business but your creditors and the court must approve a plan to repay your debts There is no Trustee ? ?87 Things You Need to Know Before You File Bankruptcy”... bankruptcy and decide later to file another chapter For example, you originally file a Chapter but decide to convert to a Chapter 13 ? ?87 Things You Need to Know Before You File Bankruptcy” Page 19