As a Debt Relief Agency under 11 U.S.C. § 527 of the United States Bankruptcy Code the Eranthe Law Firm is required to provide certain mandatory disclosures. If you are looking for bankruptcy help on our website, you are hereby notified of the following disclosures. If you have any questions about these disclosures please call our office at (415) 504-2006.
Disclosures Pursuant to 11 U.S.C. § 342 (b)
(1)(A) Four Chapters of the Bankruptcy Code Available to Debtors:
Chapter 7 – Liquidation.
Total Court Fee is $299 ($245 filing fee plus $39 administrative fee and $15 trustee surcharge).
If you cannot afford to meet your monthly living expenses and pay your debts, you may be able to completely liquidate your debt. Chapter 7 contemplates an orderly, court-supervised procedure where a trustee takes over the debtor’s assets, reduces them to cash, and makes distributions to creditors -- all subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.”
A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed.
Not everyone will qualify to file under chapter 7 as debtors are subject to a “means test” designed to determine whether the case should be permitted to proceed. If your income is greater than the median income for your residence state and family size, creditors may have the right to file a motion requesting that the court dismiss your case under § 707(b) of the Code. The court decides whether the case should be dismissed.
Some debts are not discharged under the law even if you receive a general discharge. You will still be responsible for most taxes and student loans; debts incurred to pay non-dischargeable taxes; family support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated. In addition, if a creditor proves that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.
For more information see the United States Court’s Bankruptcy Basics, Chapter 7 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
Chapter 11 – Reorganization.
Total Court Fee is $1,039 ($1,000 filing fee plus $39 administrative fee).
Chapter 11 is typically used for the reorganization of a business. Its provisions are complicated, its time frame lengthy and any decision by an individual to file a chapter 11 case should be reviewed with an attorney.
Debts not discharged include debts for alimony and child support; certain taxes; debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit; debts for willful and malicious injury by the debtor to another entity or to the property of another entity; debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances; and debts for certain criminal restitution orders. 11 U.S.C. § 523(a). The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 11 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared non-dischargeable. 11 U.S.C. § 523(c)
For more information see the United States Court’s Bankruptcy Basics, Chapter 11 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx
Chapter 12 - Family Farmer or Fisherman.
Total Court Fee is $239 ($200 filing fee plus $39 administrative fee).
Chapter 12 is designed to permit “family farmers” or “family fishermen” with regular annual income to repay all or part of their debts over a period of time and make installments to creditors over three to five years. There are extensive eligibility requirements and it is limited to those whose income arises primarily from a family-owned farm or commercial fishing operation.
Certain categories of debts are not discharged in chapter 12 proceedings. 11 U.S.C. § 1228(a). Those categories include alimony and child support; money obtained through filing false financial statements; debts for willful and malicious injury to person or property; debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated; and debts from fraud or defalcation while acting in a fiduciary capacity, embezzlement or larceny. The bankruptcy law regarding the scope of a chapter 12 discharge is complex, however, and debtors should consult competent legal counsel in this regard prior to filing. Those debts that will not be discharged should be paid in full under a plan. With respect to secured obligations, those debts may be paid beyond the end of the plan payment period and, accordingly, are not discharged.
For more detailed information see the United States Court’s Bankruptcy Basics, Chapter 12 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter12.aspx
Chapter 13 - Repayment or Reorganization of All or Part of an Individual’s Debts.
Total Court Fee is $274 ($235 filing fee plus $39 administrative fee).
Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.
Chapter 13 contains a special automatic stay provision that protects co-debtors. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a "consumer debt" from any individual who is liable along with the debtor. 11 U.S.C. § 1301(a). Consumer debts are those incurred by an individual primarily for a personal, family, or household purpose. 11 U.S.C. § 101(8).
Individuals may also use a chapter 13 proceeding to save their home from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the chapter 13 petition. The individual may then bring the past-due payments current over a reasonable period of time. The debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition. 11 U.S.C. § 1322(c). The debtor may also lose the home if he or she fails to make the regular mortgage payments that come due after the chapter 13 filing.
Under chapter 13, you must file a plan with the court laying out how you will repay your creditors all or part of the money that you owe them from your future earnings. The period allowed by the court to repay your debts is usually three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.
After completing the plan payments most debts are discharged. Debts not discharged include family support obligations; most student loans; certain taxes; most criminal fines and restitution; debts not listed, or improperly listed, in your bankruptcy; debts for acts leading to death or personal injury; and certain long term secured obligations.
For more information see the United States Court’s Bankruptcy Basics, Chapter 13 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx
(1)(B) Services Available from Credit Counseling Agencies.
With very limited exceptions, § 109(h) of the Bankruptcy Code requires all individual debtors, who file for bankruptcy relief on or after October 17, 2005, receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing and may be individual or with a group. The briefing may also be conducted by telephone or on the Internet and must be provided by a nonprofit budget and credit counseling agency approved by the United States trustee (or bankruptcy administrator). You may consult an agency from the approved list on the United States Trustee Program’s website at www.usdoj.gov/ust. The list is also available in the bankruptcy clerk’s office. Each debtor in a joint case must complete the briefing.
In addition, after filing a bankruptcy case, an individual debtor must generally complete a financial management instructional course before they receive a discharge. A list of approved financial management instructional courses is also available on the United States Trustee Program’s website at www.usdoj.gov/ust and at the bankruptcy clerk’s office. Again, each joint debtor must complete the course.
(2) Notice to Debtor:
(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.
Disclosures Pursuant to 11 U.S.C. § 527 (a)(2)
YOU ARE NOTIFIED THAT:
(1) All information that you are required to provide with a petition and thereafter during a case under the Bankruptcy Code is required to be complete, accurate, and truthful.
(2) All assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case. If asked for an asset replacement value, a reasonable inquiry shall be made to establish the value at the date of filing the petition. No deductions are made 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.
(3) Current monthly income, the amounts specified in § 707(b)(2), and, in a case under Chapter 13 of the Bankruptcy Code, disposable income (determined in accordance with § 707(b)(2)) are required to be stated after reasonable inquiry.
(4) Information you provide during your case may be audited pursuant to the Bankruptcy Code. Failure to provide such information may result in dismissal of the case or other sanction, including a criminal sanction.
Disclosures Pursuant to 11 U.S.C. § 527 (b)
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’ and 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.
Disclosures Pursuant to 11 U.S.C. § 527 (c)(1) How to Value Assets at Replacement Value.
Replacement value means the value 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.
(2) How to Determine Current Monthly Income.
Your current monthly income includes all income received from any source in the last 6 months. This includes wages, salary, tips, bonuses, overtime, commissions, income from operation of a business, profession or farm, rents and real property income, interest, dividends, royalties, unemployment, pension and retirement income. Income also includes regular contributions to your household expenses from a child, parent, roommate or spouse. Income includes income from any other source not listed above.
(3) The Amounts Specified in § 707(b)(2).
You are required to complete a “means test” to determine what bankruptcy chapter you can file, if any. The test application is based upon your monthly income as herein explained and your monthly expenses. Some of these expenses are based on applicable monthly expense amounts specified under National Standards and Local Standards, and some expenses are based on your actual monthly expenses. Your actual monthly expenses include your average monthly expenses for payments to secured creditors on your automobile, amounts incurred for taxes, mandatory payroll deductions, life insurance premiums, money paid pursuant to a court order, including spousal or child support, education expenses required for work, child care, health care not otherwise reimbursed and the amount you pay for telecommunication services.
(4) In a Chapter 13 Case, How to Determine Disposable Income in Accordance with § 707(b)(2) and Related Calculations.
In a Chapter 13 case, your income and expenses also include Chapter 13 administrative expenses of up to 10% of your required plan payment.
(5) How to Complete the List of Creditors, Including How to Determine What Amount is Owed and What Address to Show for the Creditor.
You are required to provide a list of all your creditors. This list must include the creditor’s name and address as well as your account number with the creditor. If, within 90 days before you file bankruptcy, a creditor supplies to you in at least two communications the account number and an address that the creditor requests to receive correspondence, you must use this address and account number. The creditor may also file with the court a notice of address to be used to provide notice to such creditor.
(6) How to Determine what Property is Exempt and How to Value Exempt Property as Replacement Value as Defined in § 506.
You may exempt certain property from the property of your bankruptcy estate so it is not available for trustee sale. You may use the exemptions available under California Law if you have lived in California for 730 days prior to the bankruptcy filing. If you have not lived in California for the last 730 days, you will have to use the exemption laws under your previous residence state providing you lived there for at least 180 days. If you did not live in that state for 180 days, you will have to use the available Federal Exemptions under 11 U.S.C. § 522. You may also choose to use the Federal Exemptions rather than the state exemptions. You may not combine both federal and state exemptions or choose “ala carte.” You value your exempt property under the replacement value that is listed previously.
Disclosures Pursuant to 11 U.S.C. § 342 (b)
(1)(A) Four Chapters of the Bankruptcy Code Available to Debtors:
Chapter 7 – Liquidation.
Total Court Fee is $299 ($245 filing fee plus $39 administrative fee and $15 trustee surcharge).
If you cannot afford to meet your monthly living expenses and pay your debts, you may be able to completely liquidate your debt. Chapter 7 contemplates an orderly, court-supervised procedure where a trustee takes over the debtor’s assets, reduces them to cash, and makes distributions to creditors -- all subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.”
A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed.
Not everyone will qualify to file under chapter 7 as debtors are subject to a “means test” designed to determine whether the case should be permitted to proceed. If your income is greater than the median income for your residence state and family size, creditors may have the right to file a motion requesting that the court dismiss your case under § 707(b) of the Code. The court decides whether the case should be dismissed.
Some debts are not discharged under the law even if you receive a general discharge. You will still be responsible for most taxes and student loans; debts incurred to pay non-dischargeable taxes; family support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated. In addition, if a creditor proves that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.
For more information see the United States Court’s Bankruptcy Basics, Chapter 7 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
Chapter 11 – Reorganization.
Total Court Fee is $1,039 ($1,000 filing fee plus $39 administrative fee).
Chapter 11 is typically used for the reorganization of a business. Its provisions are complicated, its time frame lengthy and any decision by an individual to file a chapter 11 case should be reviewed with an attorney.
Debts not discharged include debts for alimony and child support; certain taxes; debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit; debts for willful and malicious injury by the debtor to another entity or to the property of another entity; debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances; and debts for certain criminal restitution orders. 11 U.S.C. § 523(a). The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 11 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared non-dischargeable. 11 U.S.C. § 523(c)
For more information see the United States Court’s Bankruptcy Basics, Chapter 11 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx
Chapter 12 - Family Farmer or Fisherman.
Total Court Fee is $239 ($200 filing fee plus $39 administrative fee).
Chapter 12 is designed to permit “family farmers” or “family fishermen” with regular annual income to repay all or part of their debts over a period of time and make installments to creditors over three to five years. There are extensive eligibility requirements and it is limited to those whose income arises primarily from a family-owned farm or commercial fishing operation.
Certain categories of debts are not discharged in chapter 12 proceedings. 11 U.S.C. § 1228(a). Those categories include alimony and child support; money obtained through filing false financial statements; debts for willful and malicious injury to person or property; debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated; and debts from fraud or defalcation while acting in a fiduciary capacity, embezzlement or larceny. The bankruptcy law regarding the scope of a chapter 12 discharge is complex, however, and debtors should consult competent legal counsel in this regard prior to filing. Those debts that will not be discharged should be paid in full under a plan. With respect to secured obligations, those debts may be paid beyond the end of the plan payment period and, accordingly, are not discharged.
For more detailed information see the United States Court’s Bankruptcy Basics, Chapter 12 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter12.aspx
Chapter 13 - Repayment or Reorganization of All or Part of an Individual’s Debts.
Total Court Fee is $274 ($235 filing fee plus $39 administrative fee).
Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.
Chapter 13 contains a special automatic stay provision that protects co-debtors. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a "consumer debt" from any individual who is liable along with the debtor. 11 U.S.C. § 1301(a). Consumer debts are those incurred by an individual primarily for a personal, family, or household purpose. 11 U.S.C. § 101(8).
Individuals may also use a chapter 13 proceeding to save their home from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the chapter 13 petition. The individual may then bring the past-due payments current over a reasonable period of time. The debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition. 11 U.S.C. § 1322(c). The debtor may also lose the home if he or she fails to make the regular mortgage payments that come due after the chapter 13 filing.
Under chapter 13, you must file a plan with the court laying out how you will repay your creditors all or part of the money that you owe them from your future earnings. The period allowed by the court to repay your debts is usually three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.
After completing the plan payments most debts are discharged. Debts not discharged include family support obligations; most student loans; certain taxes; most criminal fines and restitution; debts not listed, or improperly listed, in your bankruptcy; debts for acts leading to death or personal injury; and certain long term secured obligations.
For more information see the United States Court’s Bankruptcy Basics, Chapter 13 at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx
(1)(B) Services Available from Credit Counseling Agencies.
With very limited exceptions, § 109(h) of the Bankruptcy Code requires all individual debtors, who file for bankruptcy relief on or after October 17, 2005, receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing and may be individual or with a group. The briefing may also be conducted by telephone or on the Internet and must be provided by a nonprofit budget and credit counseling agency approved by the United States trustee (or bankruptcy administrator). You may consult an agency from the approved list on the United States Trustee Program’s website at www.usdoj.gov/ust. The list is also available in the bankruptcy clerk’s office. Each debtor in a joint case must complete the briefing.
In addition, after filing a bankruptcy case, an individual debtor must generally complete a financial management instructional course before they receive a discharge. A list of approved financial management instructional courses is also available on the United States Trustee Program’s website at www.usdoj.gov/ust and at the bankruptcy clerk’s office. Again, each joint debtor must complete the course.
(2) Notice to Debtor:
(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.
Disclosures Pursuant to 11 U.S.C. § 527 (a)(2)
YOU ARE NOTIFIED THAT:
(1) All information that you are required to provide with a petition and thereafter during a case under the Bankruptcy Code is required to be complete, accurate, and truthful.
(2) All assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case. If asked for an asset replacement value, a reasonable inquiry shall be made to establish the value at the date of filing the petition. No deductions are made 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.
(3) Current monthly income, the amounts specified in § 707(b)(2), and, in a case under Chapter 13 of the Bankruptcy Code, disposable income (determined in accordance with § 707(b)(2)) are required to be stated after reasonable inquiry.
(4) Information you provide during your case may be audited pursuant to the Bankruptcy Code. Failure to provide such information may result in dismissal of the case or other sanction, including a criminal sanction.
Disclosures Pursuant to 11 U.S.C. § 527 (b)
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’ and 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.
Disclosures Pursuant to 11 U.S.C. § 527 (c)(1) How to Value Assets at Replacement Value.
Replacement value means the value 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.
(2) How to Determine Current Monthly Income.
Your current monthly income includes all income received from any source in the last 6 months. This includes wages, salary, tips, bonuses, overtime, commissions, income from operation of a business, profession or farm, rents and real property income, interest, dividends, royalties, unemployment, pension and retirement income. Income also includes regular contributions to your household expenses from a child, parent, roommate or spouse. Income includes income from any other source not listed above.
(3) The Amounts Specified in § 707(b)(2).
You are required to complete a “means test” to determine what bankruptcy chapter you can file, if any. The test application is based upon your monthly income as herein explained and your monthly expenses. Some of these expenses are based on applicable monthly expense amounts specified under National Standards and Local Standards, and some expenses are based on your actual monthly expenses. Your actual monthly expenses include your average monthly expenses for payments to secured creditors on your automobile, amounts incurred for taxes, mandatory payroll deductions, life insurance premiums, money paid pursuant to a court order, including spousal or child support, education expenses required for work, child care, health care not otherwise reimbursed and the amount you pay for telecommunication services.
(4) In a Chapter 13 Case, How to Determine Disposable Income in Accordance with § 707(b)(2) and Related Calculations.
In a Chapter 13 case, your income and expenses also include Chapter 13 administrative expenses of up to 10% of your required plan payment.
(5) How to Complete the List of Creditors, Including How to Determine What Amount is Owed and What Address to Show for the Creditor.
You are required to provide a list of all your creditors. This list must include the creditor’s name and address as well as your account number with the creditor. If, within 90 days before you file bankruptcy, a creditor supplies to you in at least two communications the account number and an address that the creditor requests to receive correspondence, you must use this address and account number. The creditor may also file with the court a notice of address to be used to provide notice to such creditor.
(6) How to Determine what Property is Exempt and How to Value Exempt Property as Replacement Value as Defined in § 506.
You may exempt certain property from the property of your bankruptcy estate so it is not available for trustee sale. You may use the exemptions available under California Law if you have lived in California for 730 days prior to the bankruptcy filing. If you have not lived in California for the last 730 days, you will have to use the exemption laws under your previous residence state providing you lived there for at least 180 days. If you did not live in that state for 180 days, you will have to use the available Federal Exemptions under 11 U.S.C. § 522. You may also choose to use the Federal Exemptions rather than the state exemptions. You may not combine both federal and state exemptions or choose “ala carte.” You value your exempt property under the replacement value that is listed previously.