Disclosures under the new Bankruptcy Law (2005)
There are four types of bankruptcy available to individuals.
As required by USC § 342. (b) (1) the following are brief descriptions of chapter 7, 11,
12 and 13 to explain the general purpose, benefits, and costs of proceeding under each of
those chapters:
Chapter 7:
A liquidation style case for individuals or businesses.
Chapter 11: A more complex rehabilitation-style case used primarily by business
debtors, but sometimes by individuals with substantial debts and
assets.
Chapter 12: A payment plan or rehabilitation-style case for family farmers and
fishermen.
Chapter 13: A payment plan or rehabilitation-style case for individuals with a
regular source of income.
The two most important types of cases for consumers are chapter 7 and chapter 13. Both
provide for some possible payments to creditors, a discharge for debtors and supervision
by a trustee. Chapter 7 involves surrendering some of your property (at least in theory) in
return for a discharge of many of your debts. The trustee sells any non-exempt property
and pays your creditors. In chapter 13, you keep your property but must commit to a
three-to-five year repayment plan. You then obtain a discharge of most of the debts not
paid in the plan.
In both types of bankruptcy, most creditors must stop efforts to collect debts after your
case is filed. This protection is called “automatic stay.” In a chapter 7, this relief is often
temporary.
Also available to you are several services from the following credit counseling agencies:
FLM
Middle District of Florida
Consumer Credit Counseling Service of Central Florida and the Florida Gulf Coast, Inc.
3670 Maguire Blvd.
Suite 103
Orlando, Fl 32803
800-741-7040
www.payoffdebt.org
In Person, Telephonic, and Internet
Consumer Credit Counseling Service of Greater Atlanta Inc.
100 Edgewood Avenue
Suite 1800
Atlanta, GA 30303
800-251-2227
www.cccsinc.org
In Person (not available in all judicial districts), Telephonic and Internet
Consumer Credit Counseling Service of Mid-Florida, Inc.
1539 NE 22nd Avenue
Ocala, FL 34478
800-245-1865
In Person and Telephonic
Credit Counseling Centers of America
9330 LBJ Freeway
Suite 900
Dallas, TX
75379-8039
800-493-2222
www.cccamerica.org
In Person (not available in all judicial districts), Telephonic and Internet
GreenPath, Inc.
38505 Country Club Drive, Suite 210
Farmington Hills, MI 48331-3429
800-630-6718
www.greenpath.com
In Person (not available in all judicial districts), and Telephonic
Money Management International Inc.
9009 West Loop South
7th Floor
Houston, TX 77096-1719
877-918-2227
www.moneymanagement.org
Hummingbird Credit Counseling and Education
3737 Glenwood Avenue, Suite 100
Raleigh, NC 27612
tel: 1-800-645-4959
email: help@hbcce.org
http://www.hummingbird.org/
For additional sites, see http://www.usdoj.gov/ust/index.htm
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USC § 527.
Disclosures
(A) All information that you are required to provide with your petition and thereafter
during a case under this title is required to be complete, accurate, and truthful.
(B) All assets and all liabilities are required to be completely and accurately disclosed
in order to commence the case.
(C) Current monthly incomes, (disposable incomes for chapter 13 cases) are to be
accurately stated and specified.
(D) Information that you provide during your case may be audited, and failure to
provide accurate and complete information may result in the dismissal of your
case under this title or any other sanction, including criminal sanction.
Under 11 U.S.C § 342 (2)
(a) A person who knowingly and fraudulently conceals assets or makes a false oath or
statement under penalty of perjury in connection with a case under this title shall be
subject to fine, imprisonment, or both; and
(b) All information supplied by a debtor in connection with a case under this title is
subject to examination by the Attorney General.
We are required to maintain these records under USC § 527 (a) for two (2) years after
the date on which you disclose this information.
The undersigned acknowledges receipt of this disclosure required by 11 U.S.C. §
527(a). I/WE have read and understand its contents and the implications associated
with failing to honestly provide information about our income, expenses, property
and other financial circumstances.
___________________
Name
___________________
Date
___________________
Name
___________________
Date
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IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE
SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER
If you decide to seek bankruptcy relief, you can represent yourself, you can hire an
attorney to represent you, or you can get help in some localities from a bankruptcy
petition preparer who is not an attorney.
THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT
THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR
YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire
anyone.
The following information helps you understand what must be done in a routine
bankruptcy case to help you evaluate how much service you need. Although bankruptcy
can be complex, many cases are routine.
Before filing a bankruptcy case, either you or your attorney should analyze your
eligibility for different forms of debt relief available under the Bankruptcy Code and
which form of relief is most likely to be beneficial for you. Be sure you understand the
relief you can obtain and its limitations. To file a bankruptcy case, documents called a
Petition, Schedules and Statement of Financial Affairs, as well as in some cases a
Statement of Intention need to be prepared correctly and filed with the bankruptcy court.
You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will
have to attend the required first meeting of creditors, where you may be questioned by a
court official called a ‘trustee’ or by creditors.
If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt.
You may want help deciding whether to do so. A creditor is not permitted to coerce you
into reaffirming your debts.
If you choose to file a chapter 13 case in which you repay your creditors what you can
afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and
with the confirmation hearing on your plan which will be before a bankruptcy judge.
If you select another type of relief under the Bankruptcy Code other than chapter 7 or
chapter 13, you will want to find out what should be done from someone familiar with
that type of relief.
Your bankruptcy case may also involve litigation. You are generally permitted to
represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy
petition preparers, can give you legal advice.
Please find below information to assist you in the accurate completion of your petition:
(1) (a) How to value assets at replacement value: you may hire an appraisal or visit a
used furniture store or in valuing automobiles, see a used car dealer, or check with
various internet sites, such as Kelley Blue Book or NADA for such value.
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If the debtor is an individual in a case under chapter 7 or 13, such value with
respect to personal property securing an allowed claim shall be determined based
on the replacement value of such property as of the date of the filing of the
petition without deduction for costs of sale or marketing. With respect to property
acquired for personal, family, or household purposes, replacement value shall
mean the price a retail merchant would charge for property of that kind
considering the age and condition of the property at the time value is determined.
(b) How to determine current monthly income, the amounts specified in § 707 (b):
please provide six months of pay stubs, a tax return for the last year filed and W2(s) for the last year
(c) In a chapter 13 case, how to determine disposable income in accordance with
§ 707 (b) (2) and related calculations: same as 1(b)
(2) (a) How to complete the list of creditors, including how to determine what amount
is owed and what address for the creditor should be shown: you have the option of
pulling a credit report from a credit reporting agency or for a fee; my office will
pull your credit report from either two or three credit reporting agencies. It is
imperative that each creditor is listed on your schedules, including secured
creditors that you wish to continue paying. Secondly, each creditor must contain
an address, city, state and zip code. Please check your invoices or billing
statements for the address for each creditor. Often times creditors have several
addresses, you should list the address the creditor receives correspondence. Some
creditors may list an address for bankruptcy notices to be sent; if so, please list
that address as well. If a creditor has turned your account over to a collection
agency or attorney, please list the original creditor’s address and the collection
agency and attorney address. These addresses are necessary so all parties for a
creditor gets notice of the bankruptcy filing.
(3) (b) How to determine what property is exempt and how to value exempt property
at replacement value as defined in § 506.
Florida has “opted out” of the Federal exemptions and Florida residents are
allowed state and local law exemptions, other federal law exemptions, and
exemptions listed in Florida Statute Chapter 222 and for a partial list of federal
statutory exemptions (other than those listed in the Bankruptcy Code); 11 U.S.C.
(b)(2)(A).
Can I keep my home?
Florida law allows a debtor to exempt their homestead and keep it free from the
creditors, provided it is a personal residence plus 160 contiguous acres if located
outside a municipality or a personal residence plus ½ acre within a municipality.
However, the value of the homestead that will be allowed as exempt under state
law must be reduced to the extent of any addition to the value of the homestead on
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account of a disposition of non exempt property made by the debtor made with
intent to hinder, delay, or defraud creditors during the 10 years prior to the
bankruptcy filing. However, to the extent the debtor could have exempted the
converted property; the debtor may still claim that portion of the homestead as
exempt.
Secondly, a debtor my not exempt any amount of homestead property in excess of
*$136,875.00 which was acquired during the past 40 months preceding the
bankruptcy filing. The value of the homestead derived from any money put into
the recently acquired house in excess of *$136,865.00 will not be exempt in the
debtor’s bankruptcy. The only exception to the *$136.875.00 cap is for money
derived from the sale of a prior homestead within the state of Florida.
Can I keep my car?
Florida law allows you to have a $1000.00 equity exemption in an automobile.
For instance, if your automobile is valued at $1000.00, you can keep it.
Sometimes, a joint debtors, husband and wife, can combine their exemptions
together in one automobile. For instance, joint debtors can have a $2,000.00
exemption in one automobile provided it is jointly titled.
What happens if I have more than $1000.00 equity in my automobile?
In a chapter 7, the trustee can liquidate your automobile. That means, the trustee
can take it from you and sell it.
How much personal property is exempt?
Personal property up to $1,000.00 is exempt; husband and wife can each claim
$1,000.00 in personal property if they are filing a joint petition. If you do not
claim a homestead exemption, your personal property exemption is an additional
$5,000.00 per debtor (husband and wife). Personal property includes cash, money
in the bank, clothing, household goods and furnishings stocks and other items.
Is my IRA exempt?
Yes, retirement or profit sharing plan income including IRA’s qualified under
IRC S408 is exempt
* Amounts are subject to adjustment on 4/1/10 and every 3 years thereafter with respect
to cases commenced on or after the date of commencement.
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