Chapter 7
Bankruptcy Roadmap
.........................................
1. A free initial consultation with Attorney Nixson at his office is provided without any obligation. You will receive information on the bankruptcy process and how it will apply to your individual circumstances. Should you file bankruptcy? Will it benefit you? Should I file Chapter 7 or 13 bankruptcy? These are all questions that can be addressed during your private one-on-one conversation with your attorney Don Nixson—not a legal assistant. We will discuss a flat rate fee for your case and agree to payment terms which meet your budget. The initial consultation does not obligate you to go forward, you may find that bankruptcy is not right for you at this time.
2. Should you decide to go forward with Bankruptcy, you will be given a set of worksheets/forms (they are also available for download in the left-hand column). Following, are the types of information you will be gathering and then listing. These completed worksheets/forms must be returned to our Law Office before filing.
A. General information Contact information, other personal or business names used in the past six years, and prior bankruptcies. Provide the same information for your co-debtor spouse(if applicable).
B. What you own Include all your property with all the requested details ― real estate, burial plots, oil & gas leases, cash on hand, checking accounts, savings, security deposits, annuities, pension, profit sharing, stock, interests in partnerships, bonds, account receivables, business assets, support, tax refunds due, vehicles, boats, trailers, etc., that you own.
C. What you owe Now make a list of all your creditors and gather all the requested details. This is anyone you owe money to, anyone who has a claim against you, anyone who has a judgment against you, including collection agencies and attorneys representing creditors; and federal and state taxes owed. Details required:
• Creditor name
• Debt description
• Address (correspondance address)
• Account numbers
• Balance owed
D. Your family and your job Provide marital status and job status of you and your co-debtor (if applicable) and dependant information. Include employer names and addresses.
E. Your monthly income List all your income, including payroll deductions for both you and your co-debtor (if applicable). If you are self-employed, include that as well.
F. Your monthly expenses Break down all your monthly expenses. Use average figures for utilities, etc.
G. Statement of financial affairs (SOFA) Finally, this part of the worksheet summarizes where you are right now financially and what has happened in recent history.
.........................................
3. Additional items to submit:
A. Your last two tax returns
B. Check stubs from your employer or P&L from self-employment for the last six months
C. Three months bank statements, including the date of your filing
D. Copy of Driver's License
E. Copy of Social Security Card
.........................................
4. When we file your bankruptcy, it is best that your bank account balances are low (preferably <$350) usually just before you get paid. Ask us when we are going to file you so you can put in on your calendar.
.........................................
5. You are required by current Bankruptcy Law to take two bankruptcy courses from an approved agency. These courses can be taken both online and over the phone. They take an 1.5-2.5 hours to complete each one. If you need somewhere to take the courses, you can take them at our office on our computer.
A. Bankruptcy Counseling course ONE - Before you can file bankruptcy, you must receive a credit counseling session. Take your course within one month of when you are going to file.You can use any provider you prefer. See the florescent yellow sheet in you package for some choices. As soon as you complete the course, e-mail or fax the certificate to don@nixsonlawfirm.com.
B. Bankruptcy Education course TWO - If you don't meet this deadline your bankruptcy will be closed and you will have to start over, plus it will cost you another $750. You can take this course anytime after filing so GET IT DONE before your 341 Meeting. You will need your bankruptcy case number to take this course. See the florescent orange sheet in your package for some choices. As soon as you complete each course, e-mail the certificate to don@nixsonlawfirm.com.
.........................................
6. After everything above has been completed (accept for the second counseling course), set an appointment to come in and sign your papers. Carefully check the documents and double check your social security number for accuracy during this meeting.
A. Your Income and Expense sheets must be accurate. If you discover that there is an error or a creditor has not been included, contact us immediately to get this corrected.
B. If you discover that there is property you own that has not been included, contact Mr. Nixson immediately to get this corrected.
C. Make sure you have submitted your last tax return and check stubs or payment record from your employer for the last six months.
.........................................
7. After your Filing you will receive a Notice of Bankruptcy by mail from the court. It will tell you the date and time of your "Meeting of Creditors” (called a 341 Meeting) in Fort Worth. YOU MUST ATTEND THIS MEETING. Put it on your calendar.
.........................................
8. If you receive a Notice of Deficiency by mail from the court, It will list the additional items we need from you. These are due within 3 days. Provide anything requested IMMEDIATELY. Additionally, make sure you have filled out your Statement Of Intentions as to your secured debts (complete the purple sheet in your packet).
A. If someone files a bankruptcy while having secured property (a mortgage, car loan, store property, etc,) they will have to advise the secured lenders that they want to either: Surrender, Reaffirm, Retain & Pay, or Redeem (purple form).
B. If you discover that there is an error or a creditor has not been included, contact Mr. Nixson immediately to get this corrected.
C. If you discover that there is property you own that has not been included, contact Mr. Nixson immediately to get this corrected.
D. Make sure you have submitted your last tax return and check stubs or payment record from your employer for the last six months.
.........................................
9. 341 MEETING. YOU MUST ATTEND THIS MEETING. No children. In this meeting you will informally meet with the Trustee assigned to your case, answer a few questions, and your creditors are allowed to attend (they rarely attend and if they do, they will just ask some questions).
.........................................
10. After the 341 meeting you should not receive any calls or notices from your creditors. If you do receive anything, we need to make sure they were included in the filings. Note that you may be contacted by a creditor to arrange the “voluntary return of property” that you are surrendering.
.........................................
11. Sign reaffirmation agreements. Follow the link below and read the information and watch the video. Read your purple sheet, fill it out and sign. You can call and make an appointment to discuss and/or sign reaffirmation agreements. These are for debts that you want to continue paying for: your car, home or other property with a lien.
Note that if you pay by automatic debit, after you file, you will need to resubmit that paperwork to your creditors - do this one month after the 341 meeting. Don't forget... your old way of automatically paying will not be active.
.........................................
12. Pay balance owed to Mr. Nixson according to the terms you agreed to.
.........................................
13. When you receive a letter that says DISCHARGE OF DEBTOR from the court, your debt has been discharged and you are done with your bankruptcy. This will take approximately four months from your first filing.
- You will no longer owe the debts.
- DO NOT pay discharged debts or they may be revived after Discharge.
- Please note that NOT ALL debts can be discharged in bankruptcy―some taxes, child support, student loans, etc. Make sure you continue to pay those debts throughout and after the process.
.........................................
14. Permanently (at least 10 years) keep all your bankruptcy papers—together and in a safe place (including your discharge letter).
.........................................
15. Be sure you have a written budget for each month and follow it. As part of that budget, include savings. Avoid debt – it is a trap (read it again). Your goal should be to have NO DEBT― other than an affordable home loan, and constuctive debt that builds your credit score (click here for more info.)
|
