Oops, I Forgot to Include a Creditor!
When you work with a seasoned bankruptcy attorney, you won’t need to worry about missing details or errors in your paperwork. I’ll provide only the paperwork you’ll need and will give you worksheets to help you complete everything correctly. Still, we’re only human, and sometimes information is inadvertently omitted. Accuracy is especially important when you complete the “creditor mailing list” or “mailing matrix.” This form is used to inform all your creditors that you’re filing bankruptcy so that they have an opportunity to participate. One of the most common reasons a creditor is forgotten is when a debt is sold to a collection agency. To help with this, we’ll compare what you’ve listed to your credit reports. What if I Forget? Forgetting to list a creditor on your mailing matrix will require a different course of action, depending on which chapter of bankruptcy you’ve filed. If you’re filing a Chapter 7, this will most likely be a “no asset” case, which means you don’t have any non-exempt property that would need to be sold to repay creditors. Your creditors would not receive any money in a Chapter 7, whether they were listed on your paperwork or not. But, if a creditor is omitted from your paperwork, they could attempt to collect their debt after your bankruptcy is finished. Secured creditors could also pursue repossession or foreclosure of your property. If your Chapter 7 is not a “no asset” case, your creditors will all need to be notified so that they may collect some or all of what they are owed. They will need to file a “proof of claim” in order to receive these payments. If you don’t list a creditor on your matrix, they could attempt to collect from you after your case is complete. They could even seize your non-exempt assets after your case is concluded. In a Chapter 13, it’s critically important to list all of your creditors. Your income and each debt is factored in while designing your repayment plan. Not listing a creditor means the debt will not be taken care of, and it could also lead to higher monthly payments on your other debts. Your repayment plan will last 3-5 years, and you don’t want to discover you still have debt unaccounted for after all that effort. No Worries We’ll work together to create a solid case without any errors. I have many techniques to guide you as you list all of your assets, income, property, and debt so that nothing is left out. This gives the court trustee the information and details they need to accurately evaluate and reconcile your case. If you do forget a creditor, we can easily file a document with the court that details the creditor that was omitted, why this happened, and how this change would affect the outcome of your case. This may also require an amendment form, which I can submit for you. This is not something you should worry about, as I’ll use my years of experience to ensure your case is resolved without incident....
read moreValuing Your Property
Many of the bankruptcy forms you’ll complete don’t take much thought, since they just ask for basic information. On Schedule B however, you’ll need to list all of your property, as well as each item’s estimated value. It can be a challenge to decide how much your property is worth, especially when our belongings often have sentimental or emotional value. It’s important not to overvalue or undervalue your property, and I can help ensure that all the required information is accurate on Schedule B. How Much is it Worth? Deciding the value of items can be tricky because the court needs to know the current value of the property. “Retail replacement value” is what it would cost to purchase an item of similar age and condition, not to purchase a brand new one. I tell my clients to use garage sale or thrift store value. For many household items, clothing, and furniture, it’s fairly easy to estimate the value. You may want to use craigslist or thrift stores to guide you, and I can help too. You’ll need to keep track of each item, its age/condition, the estimated value, and how you came to that estimation. You do not need to use an appraisal unless you’re valuing the property higher or lower than would be expected. This usually happens if you have damaged property, and an appraisal helps the court trustee to know your estimate is accurate. To determine the value of most vehicles, you can simply use a trade publication, such as Kelley Blue Book. Their website allows you to insert the make, model, year, mileage, and basic condition of the vehicle, and it will give you an estimated price. You could also look online or at local dealerships for similar vehicles. If you have a classic, collectible, or older car, an appraisal from a professional can help you to determine an accurate value. It’s best to use a professional appraiser or car dealership so that the court trustee knows they are giving an unbiased estimate. When it comes to jewelry and unique collectibles, an appraisal is usually a must. As with other property, this is the current value; this is different from the value used to insure the item. It may be more affordable to use a pawn shop for your estimate, but the court may frown upon this and not accept their appraisal. Pawn shops are notorious for undervaluing property. An Eye for Accuracy All this paperwork may be foreign to you, but I’ve been helping people take care of their financial obligations for years. I can help you complete all of the required forms and ensure that the values and information you provide are accurate. I’m available to answer any questions and offer guidance along the way, and I’m here to help you get your finances back on track. ...
read moreWhat if Need to Make Changes to my Case?
Bankruptcy is nothing to enter into lightly. It’s important to explore the alternatives and consider the consequences of filing. If it appears that bankruptcy is the right choice for you, it’s best to select an attorney to work with who can help you decide which chapter will benefit you most. Your lawyer will also educate you about all aspects of your case and ensure that all your paperwork and supporting documents are accurate and complete. Even with the best help, it may be possible that you’ll need to make changes to your case, either based on mistakes or you simply changing your mind about part of your case. This can usually be handled by amending one or more of your forms, which I can take care of for you. Reasons for Amendments In the overwhelming majority of cases, the bankruptcy forms are submitted and accepted without any issues. I’ll make sure you have the forms that you need without giving you any unnecessary extra work and will also give you some worksheets to help with calculations and ensuring that no details are left out. Most form amendments are due to some piece of information, such as a small asset or debt, accidentally being excluded from your paperwork. This is easy to do if you have lots of small debts or if a debt has been transferred to a collection agency. A small error, such as transposing an account number, would also require a form amendment. If you experience a life change such as a job loss or divorce after you’ve filed your case, but before your case is resolved, we’ll need to notify the court so that they can handle your discharge or repayment plan accurately. Making amendments doesn’t take much work, and there usually aren’t any court fees, unless you’re adding a new creditor. You’ll need to submit a new form that is completed correctly along with an amendment cover sheet, stating what the change is. The new form must be marked “amended”, and you may or may not need to include your original paperwork as well. I’ll submit these forms to the court and any related creditors will receive a copy as well. Making a New Start While updating your paperwork isn’t a huge task, it will delay your case, which just makes your stress last longer. If the changes to your case are something beyond correcting an honest mistake, such as when you want to convert your case from a Chapter 13 to a Chapter 7, this will require additional paperwork and different steps. We’ll do everything we can to get your case resolved quickly and accurately so that you can move on with your life and get back on your...
read moreBankruptcy Forms Related to Eviction
When debt starts to get out of control, you may be forced to prioritize which bills you’ll pay. It may be easy to ignore credit card or medical bills, but rent or mortgage and utilities need to be paid. However, depending on your situation, even these living expenses may need to be skipped, and you may worry about being evicted if you’re renting. If your eviction is coupled with filing bankruptcy, there is a chance you may be able to stay in your home. I’ll give you the required forms for your situation. If you already have an eviction judgement against you, we’ll complete “Form 101A – Initial Statement About an Eviction Judgement Against You.” This will be combined with “Form 101B – Statement About Payment of an Eviction Judgement Against You” if you’d like to stay in your home. This may or may not be a possibility, but we’ll pursue this together. The Eviction Process If you fall behind on your rent, you’ll need to be aware of how the eviction process works. The details depend on where you live and the desires of your individual landlord, but the whole process, from missing a payment, to notification, to the court issuing a judgement, to actually needing to move out, could be a few weeks or up to several months. Your landlord will first give you written notice that your rent is past due and you must pay or move out; this usually happens just a few days after missing a rent payment. You’ll need to tell your landlord if you want to attempt to stay in your rental or if you plan on moving out. Unless you can get current on your rent, the court will issue a judgement against you, which means you’ll need to move out. In rare occasions and in some states, you may be able to make back rent payments to the court clerk before your bankruptcy case is resolved, which would allow you to stay in your home. If this is an option for you, we’ll discuss this. If you’re filing bankruptcy in the middle of your eviction, the automatic stay will begin as soon as all of your court documents are filed, which means you’ll get a temporary break on making certain types of debt payments. Unfortunately, this does not apply to your rent, and if an eviction judgement has already been issued against you, the automatic stay will not stop this process. We’ll need to complete Forms 101A and 101B to tell the court about the status of your situation. All the Required Forms In order to get your bankruptcy process going, you’ll need to complete the voluntary petition which gives the court the basic information they’ll need to evaluate your case. The forms you’ll need to complete will be customized to your situation, and if you’ve fallen behind on rent, Form 101A will be part of your packet. You’ll inform the court if an eviction judgement has already been issued against you and if you want to attempt to stay in your home. If it’s an option for you, you may also indicate that you’ve paid the court clerk 30 days of rent to allow you to stay in your home. This form also includes your landlord’s name and address. Our next step will be to complete Form 101B if you want to stay in your home. Here, you’ll document that you’re current on your rent payments, either with your landlord or by making payments to the court clerk. Your landlord will receive copies of these documents. ...
read moreChapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period (Form 122C-1)
Each form you complete during your bankruptcy tells a piece of your story, and I’ll provide only the forms that apply to you for you to complete. The court will also need to see documentation to back up the information you’ve provided on your forms. The “Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period” (Form 122C-1) is used to tell the court your average monthly income. This amount will determine the length of your repayment plan: three or five years. We’ll compare your income to the median for your state, and this will guide us in our method to calculate your disposable income. Listing Income The first piece of information you’ll need to consider and tell the court is if you’re married or single. If you’re married, even if you’re filing alone, you’ll need to include your spouse’s income. The court considers the following to be income: Wages Business profits Alimony Child support Retirement/pension Investment interest Unemployment Disability Government benefits Income from rental properties Form 122C-1 is where you’ll list your average income for the last full six months. This amount may end up being different from the amount on Schedule I, since this form shows your current monthly income. Schedule I will allow you to show a drop in income that led to bankruptcy. Determining Your Plan We’ll look at your deductions next, and these will be different depending on if you’re filing jointly as a married couple, as a single, or as married but filing as an individual. If you’re married but will be filing as an individual, we’ll use the marital adjustment deduction to decrease the total income that’s included in your case. We’ll be able to deduct any of your spouse’s income that goes solely to their expenses and debts. After we have your average monthly income, we’ll subtract any eligible deductions and multiply the remainder by 12 for your annual income. We’ll compare this amount to the median income for your state. If the median is higher than your income, we’ll calculate your disposable income using your actual expenses; I can help you figure this out. Your “commitment period,” or Chapter 13 repayment plan length, will be three years. If the median is lower than your income, we’ll complete Form 122C-2 to determine your disposable income using pre-set expense amounts. This also means your commitment period will be five years. The length of your repayment plan could be reduced or increased, based on how high or low your payments will be during the time frame. The court trustee can make changes if your payments seem unmanageable or not impactful enough. Work With a Pro All the nuances of bankruptcy law can be confusing, but you can leave the details to me. I’ll ensure we file your case so that you receive the most benefits, discharge as much debt as possible, and retain as much property as possible. I’m here to help you with your paperwork and also to guide you as you make plans for your financial future. ...
read moreChapter 7 Statement of Your Monthly Income
It takes planning and discipline to stick to a budget, but sometimes despite your best efforts, you may find yourself in debt. You may be able to make adjustments to keep up with the payments, but over time the debt may continue to grow, and even making minimum payments becomes too much to handle. If you’re considering bankruptcy to get your budget back under control, you’ll need to do some research. One of the first steps when we meet to discuss your options is to conduct the means test, which will guide us as we decide which chapter best fits your situation. This is a calculation using your income, debts, living expenses, and assets to determine if you’re eligible for a Chapter 7 bankruptcy. Many people prefer a Chapter 7 because it quickly discharges your unsecured debts, which can be like a clean slate. If, for some reason, you don’t qualify for a Chapter 7, you may still be able to get relief through a Chapter 13. You’ll make reduced debt payments to the court, and after three to five years, most remaining debts are discharged. In the long run, you’ll pay much less toward your debts than you originally owed. Means Test Forms We’ll decide which forms to complete based on your situation. Our first step is to complete the Chapter 7 Statement of Your Current Monthly Income (Form 122A-1) where we’ll compare your income to the median income for a similar household living in your area. If you fall below the median, you can file a Chapter 7 without any additional eligibility forms. If your debts are primarily business related, you’re disabled, or you’re in the National Guard or armed services reserves, we’ll indicate this on Form 122A-1 Supp, and you’ll be eligible for a Chapter 7, regardless of your income level. A third option to establish eligibility for a Chapter 7 is to complete Form 122A-2. This calculates your disposable income, which will determine if you have the “means” of paying off your debts. If you do not, you may file a Chapter 7; otherwise, we’ll take steps to file a Chapter 13. Filling Out the Forms As we prepare to complete your paperwork, it will be your responsibility to gather your income information and supporting documents. I’ll give you a list of possible income sources to avoid leaving anything out. We’ll tell the courts how your’re filing, married filing jointly, married filing as an individual, or single. We’ll consider the ramifications and consequences of each way you could possibly file, and this will guide us as we include income on your paperwork. Your income includes wages from your employer, unemployment, child support/alimony you receive, retirement, rental property income, or earned interest. We’ll list any Social Security income on a separate form. If you’re filing with your spouse, all of your income for the six months leading to bankruptcy must be included, but if you’re married and filing as an individual, only some of your spouse’s income must be included. Confidence for the Future When you work with an experienced bankruptcy attorney, you can be confident that all of the required forms are included in your case and filled out correctly. I can also help you make strategic decisions to protect your bottom line....
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