Responsibilities of Our Clients

IN CHAPTER 7 CASES

In order to have a successful Chapter 7 case, you need to do your part in providing us with the information and documentation required by the bankruptcy laws. 

The following is a brief list of what we will need from you so that we can move forward with successful filing and completion of your case.

Proof Of Income For The Last 6 Months:

The bankruptcy law requires that we provide proof of all sources of income for the 6 months before you file your bankruptcy. This includes income from all sources, including, but not limited to, the following items:

• Pay Stubs
• Proof of Unemployment Income
• Proof of Social Security Income
• Proof of Child Support
• Proof of Food Stamps
  Proof of Disability Income
• If you are self employed, we need documentation of your income from all available sources and all other proof that you can supply, including profit and loss statements, bank statements, and other business records.
• Other proof of income for the 60 day period before your bankruptcy has been filed.  By way of example, if we file your bankruptcy on July 1st, in addition to the above, we need proof of all income for the period from May 1 through June 30. 

The amount of income you earn per month compared to the amount of reasonable expenses you have per month can be a factor in determining whether you can legally wipe out all of your unsecured debt. You want to demonstrate that you don’t have the financial ability to pay the bills you need to wipe out.

 
Tax Returns for The Last 2 Years:

A copy of your tax returns for the year 2009 and 20010 is required in order for your case to be filed with the Court. Your 2010 tax return does not have to be filed until April 15, 2011. If you have completed your 2009 tax return, please provide that to us.

 If You Own Real Estate, The Following Is Required:

• Proof of your mortgage payments
• Proof of the mortgage pay-off Meaning: the amount of money you would have to pay the mortgage company to pay off your mortgage in full.  This is required for each mortgage on your home or any other real estate that you own.
• Proof of the value of all of your real estate by market analysis or appraisal is required before your bankruptcy can be filed with the court. This includes mobile homes, time shares, property owned in another country, vacant land, and condos. These normally cost $45 at a minimum, and we can help you obtain a market analysis at a reasonable cost. You can also look at  www.zillow.com to get a rough idea about your house value.
• We need a copy of the deed for every property that you own.
           

There are certain legal restrictions on the amount of assets you can own and still wipe out all of your unsecured debts. The net equity in your home is very important. This number helps to determine whether or not all the unsecured bills can be legally wiped out in your case. That is why we always need to document the value of your home and the amount of your mortgage payoffs.

For example, a married couple can have $43,250 equity in their home and still wipe out the unsecured debts. If the equity in the house is larger, then it is possible that some of the unsecured creditors will be paid a small portion of their debt. If one person owns his/her home, the equity limit is $21,625. As long as the equity in the home is less than $21,625, unsecured debts can normally be completely wiped out.

If you have more equity in your real estate than permitted by the bankruptcy laws, it may not be helpful for you to file chapter 7, and you might be better off filing a chapter 13 plan to repay some of your unsecured creditors. If this situation applies to you, we will discuss with you in detail the various legal options you have.

Please bring all of your documents, and we will advise you of your rights.

You Must Inform us of ALL Law Suits

Including:  Personal Injury Claims and Malpractice Claims

Please be sure to let us know of any personal injury claims, malpractice claims, or other claims (such as if people owe you money) that you are pursuing or intend to pursue where you might get money in the future. 

If you have a lawsuit pending or a possible lawsuit that you intend to pursue when you file your bankruptcy, this must be disclosed in the bankruptcy petition and you must let us know. These items are considered assets that we have to disclose to the bankruptcy court.  Failure to disclose the existence of these claims can lead to dismissal of your bankruptcy case and denial of a discharge, meaning that you will not be protected from your creditors.

Credit Counseling and Debtor Education Program

 1- Credit counseling must be completed anytime within 180 days before your bankruptcy has been filed. You can even do the counseling session on the same day that your bankruptcy is filed. You will receive your certificate of completion, and we have to file this with the Bankruptcy Court. The charge for this credit counseling session is $25 online and $35 by phone. It is usually very simple and straightforward, and it can be done either by phone or online.

     2-  You also have to complete a debtor education program which costs $24 and which is also very straightforward and simple.  You must make sure to complete the debtor education program in a timely manner.  If you don’t complete it before your bankruptcy is listed for discharge (usually within 90 days after your bankruptcy petition has been filed), your bankruptcy case can be dismissed without a discharge, and it is costly to reopen your case. 

You can do the session online by going to www.Abacuscc.org. If you want to do the session by phone, please call Abacus at 1-800-516-3834. If you have any trouble setting up this session, please let us know immediately.

This is very important. If you don’t get a discharge, your creditors can come after you and you will have wasted time and money by being in bankruptcy.

 Requirement to Make Mortgage Payments
If you are making mortgage payments, you are required to keep up with all regular mortgage payments after your bankruptcy has been filed.

 Requirement to Make Car Payments
If you are making car payments outside of your bankruptcy, you must continue to make those car payments on time, unless you choose to surrender the car and be released of the debt.

 Requirement to Make Rent Payments
If you are making a rent payment outside of your bankruptcy, you must continue to make these payments on time.

 Requirement to Make Child Support Payment
Regular child support payments must be made on time after you file for bankruptcy.

  We are here to help you succeed.
If you have any questions about any of your responsibilities,
please call our office:  (856) 696-8300