In accordance with §342(b) of the Bankruptcy Code, this Notice (written by the Bankruptcy Court):
(1) Describes briefly the services available from credit counseling services; (2) Describes briefly the purposes, benefits
and costs of the four types of bankruptcy proceedings you may commence; and (3) Informs you about bankruptcy crimes and notifies
you that the Attorney General may examine all information you supply in connection with a bankruptcy case. You are cautioned
that bankruptcy law is complicated and not easily described. Thus, you may wish to seek the advice of an attorney to learn
of your rights and responsibilities should you decide to file a petition. Court employees cannot give you legal advice.
1.
Services Available from Credit Counseling Agencies With limited exceptions, §109(h) of the Bankruptcy Code requires that
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. The briefing may be provided individually or in a group (including briefings 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. The clerk of the bankruptcy court has a list that you may consult of the approved
budget and credit counseling agencies.
In addition, after filing a bankruptcy case, an individual debtor generally must
complete a financial management instructional course before he or she can receive a discharge. The clerk also has a list of
approved financial management instructional courses.
2. The Four Chapters of the Bankruptcv Code Available to Individual
Consumer Debtors
Chapter 7: Liquidation ($220 filing fee, $39 administrative fee, $15 trustee surcharge: Total
fee $274)
1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability
to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a ?means test? designed to determine
whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for your
state of residence and family size, in some cases, creditors have the right to file a motion requesting that the court dismiss
your case under § 707(b) of the Code. It is up to the court to decide whether the case should be dismissed.
2.
Under chapter 7, you may claim certain of your property as exempt under governing law. A trustee may have the right to take
possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.
3.
The purpose of filing a chapter7 case is to obtain a discharge of your existing debts. If, however, you are found to have
committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it
does, the purpose for which you filed the bankruptcy petition will be defeated.
4. Even if you receive a general discharge,
some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student
loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties,
forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers;
and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol
or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a willful
and malicious injury, the bankruptcy court may determine that the debt is not discharged.
Chapter
13: Repayment of All or Part of the Debts of an Individual with Regular Income ($235 filing fee, $39 administrative fee: Total
fee $274)
1. Chapter 13 is designed for individuals with regular income who would like to pay all
or part of their debts in instalments 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.
2. Under chapter 13, you must file with the court a plan to
repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the courtto
repay your debts may be threeyears or five years, depending upon your income and other factors. The court must approve your
plan before it can take effect.
3. After completing the payments under your plan, your debts are generally discharged
except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations;
certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal
injury; and certain long term secured obligations.
Chanter 11: Reorganization ($1000 filing fee,
$39 administrative fee: Total fee $1039)
Chapter 11 is designed
for the reorganization of a business but is also available to consumer debtors. Its provisions are quite complicated, and
any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.
Chapter 12: Family Farmer or Fisherman
($200 filing fee, $39 administrative fee: Total fee $239).
Chapter 12 is designed to permit family farmers and fishermen to repay their debts over
a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting
its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.
3.
Bankruptcy Crimes and Availability of Bankruptcy Papers to Law Enforcement Officials
A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of
perjury, either orally or in writing, in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All
information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting
through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees
of the Department of Justice.
WARNING: Section 521(a)(1) of the Bankruptcy Code requires that you promptly
file detailed information regarding your creditors, assets, liabilities, income, expenses and general financial condition.
Your bankruptcy case may be dismissed if this information is not filed with the court within the time deadlines set by the
Bankruptcy Code, the Bankruptcy Rules, and the local rules of the court.
EXHIBIT B
Information to the Assisted Person (Debtor) on How to Provide All Information Required by 11
USC §521Information to the Assisted Person (Debtor) on How to Provide All Information Required by Section 521
Section
521 of the Code sets out the Debtor's duties related to the filing of a bankruptcy case. A copy of the section is attached
to this writing. As you fill out these schedules and statement of affairs, you should keep the following in mind:
1.
Completing the income and expense pages accurately and completely is critical.
(a) To compile your income,
refer to recent pay stubs and last year's income tax returns. Accounting for overtime, investment dividends, and other earnings
is necessary.
(b) People usually pay cash for many items, such as groceries. Review your monthly expense payments and
make a best estimate on cash expenditures. If you pay insurance annually, calculate the monthly cost. Attached are IRS expense
allowances for the area in which you live. If your expenses exceed these, we will have to review them and perhaps make adjustments.
(c)
When you value property you own, consider prices in the neighborhood for housing, in newspapers and car lots for automobiles,
and what you would pay for furniture and clothes at a business selling such goods.
(d) If you have an item of special
value, an appraisal may be necessary.
(e) When listing creditors, collect current bills and use that information for
mailing addresses and balances due.
(f) Under the law of this state, or federal bankruptcy law, certain property may
be exempt and may be retained. Attached is a copy of the state list of exemptions and also a list of property that may be
exempt under federal law. Neither list is all-inclusive. If a seller has a lien on exempt property, the lien may be avoidable
or you may have to pay for the property in order to keep it. After you have prepared these lists, we can review them and decide
what property qualifies as exempt.
