Van Camp & Deissner Law Offices, 1707 W. Broadway Ave.,  Spokane, WA 99201

BANKRUPTCY Who can file? GENERAL INFORMATION The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA, pronounced “BAPCPA”) changed many of the rules for Bakruptcy filing, making the process more complicated. You can still file for bankruptcy! Here is an overview of the new requirements.   •        Credit Counseling             •        You must get credit counseling (within 6 months) before you can file any Bankruptcy. There are so few exceptions to this rule that it is basically a given. It generally costs $50.00. Here is a link to approved credit counseling agencies.             •        You must also take Post Petition Credit Counseling (called debtor education) which is provided by the same people – for another $50.00. The main education you will receive is how well Congress was lobbied to make Bankruptcy difficult, but it is mandatory.   •        Chapter 7 or 13?             •        Chapter 13 has you repay your debts over time (36 - 60 months). You must have a regular source of income for payments, but you can use this to cure mortgage or car payments arrearages.             •        Chapter 7 simply wipes out debt: you can only do this if your income is within the means test and you cannot use it to cure arrearages.             •        You must read a standard statement that explains your rights.   •        Means Testing             •        The decision of whether you file under Chapter 7 or Chapter 13 is determined in part by a “means test.”             •        You have to fill out a form, B22A or B22B, which permits comparison of your income to statistical median numbers. If your income is above the median you will usually have to file under Chapter 13; if below or under special circumstances, you may file Chapter 7.             •        For Washington the medians are: 1 person, $44,092; 2 person, $54,370; 3 persons, $58,701; 4 persons $72,103.             •        You will also have to list your expenses which must be no greater than the national standards. There are also local standards for housing and transportation.   •        Required Information   You are required to provide quite a lot of information and you should collect it up front. Some of it must be in the form of copies of documents.             •        Names and Addresses of everyone you owe money to. Your credit counseling documents will help with this, and you can pull your credit report.             •        Paystubs must be provided for the 2 months prior to filing.             •        Your latest tax return must be supplied. Tax returns need to be filed – even if unpaid – before filing!             •        Your bank account statements.             •        You absolutely must tell us about everything that is going on with you financially, particularly things like anticipated recovery of money from lawsuits, possible inheritances, child support or divorce, property held for others of by others for you – if we don’t know about it we can’t keep you out of trouble over it! You will sign a statement under oath that what we send to the Court is true and accurate and if it isn’t you could have major problems.             •        Here is a complete List of required forms & fees   •        Attorneys Fees   The bankruptcy Court has a mandatory Fee Agreement that you will need to sign. IS VAN CAMP & DEISSNER A ‘DEBT RELIEF AGENCY?’ We’re not sure so we are providing the following information to you, just in case. 11 USC § 527 provides that:   A debt relief agency providing bankruptcy assistance to an assisted person shall provide ... a clear and conspicuous written notice advising assisted persons that ...   (A) all information that the assisted person is required to provide with a 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 and the replacement value of each asset must be stated;   (C) current monthly income, and, in a case under chapter 13, disposable income are required to be stated; and   (D) information that an assisted person provides may be audited and that failure to provide such information may result in dismissal of the case or other sanction, including a criminal sanction. Such an agency is also required to provide a separate document as follows: 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.'   each assisted person reasonably sufficient information on how to provide all the information the assisted person is required to provide including--   (1) how to value assets at replacement value, determine current monthly income, and, in a chapter 13 case, how to determine disposable income and related calculations;   (2) how to complete the list of creditors, including how to determine what amount is owed and what address for the creditor should be shown; and   (3) how to determine what property is exempt and how to value exempt property at replacement value. someone familiar with that type of relief. VAN CAMP & DEISSNER attempts to comply in every way with applicable: this web site is merely an overview of the law, and the advice we give you personally will be based upon information we gain from talking to you. For more information about Bankruptcy see: How to File Bankruptcy. Types of Bankruptcy: Official form 1002 Everyone who files must read the official form, part of which follows: NOTICE TO INDIVIDUAL CONSUMER DEBTOR The purpose of this notice is to acquaint you with the four chapters of the federal Bankruptcy Code under which you may file a bankruptcy petition. The bankruptcy law is complicated and not easily described. Therefore, you should seek the advice of an attorney to learn of your rights and responsibilities under the law should you decide to file a petition with the court. Court employees are prohibited from giving you legal advice. CHAPTER 7: Liquidation ($209 fee) 1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. 2. Under chapter 7 a trustee takes possession of all your property. You may claim certain of your property as exempt under governing law. The trustee then liquidates the property and uses the proceeds to pay your creditors according to priorities of the Bankruptcy Code. 3. The purpose of filing a chapter 7 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, your discharge may be denied by the court, and the purpose for which you filed the bankruptcy petition will be defeated. 4. Even if you receive a discharge, there are some debts that are not discharged under the law. Therefore, you may still be responsible for such debts as certain taxes and student loans, alimony and support payments, criminal restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs. 5. Under certain circumstances you may keep property that you have purchased subject to valid security interest. Your attorney can explain the options that are available to you. CHAPTER 13: Repayment of All or Part of the Debts of an Individual ($194 fee) 1. Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. You are only eligible for chapter 13 if your debts to not exceed certain dollar amounts set forth in the Bankruptcy Code. 2. Under chapter 13 you must file a plan with the court to repay your creditors all or part of the money that you owe them, using your future earnings. Usually, the period allowed by the court to repay your debts is three years, but no more than five years. Your plan must be approved by the court before it can take effect. 3. Under chapter 13, unlike chapter 7, you may keep all your property, both exempt and non-exempt, as long as you continue to make payments under the plan. 4. After completion of payments under your plan, your debts are discharged except alimony and support payments, student loans, certain debts including criminal fines and restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs, and long term secured obligations. What Happens once I decide to file? First you'll spend some quality time with Don Shaw, getting the information we need input into the computer to generate forms. You will meet with Dustin Deissner to determine which type of bankruptcy you qualify for, and what will happen with the plan.  Then we file the papers:  if all goes well, you will have to attend one meeting at the Federal Courthouse, and then you will be done except for making payments. What do I need? When you get to consult with us, we will need all your financial information including all creditors' names & addresses.  You might want to pull a credit report. We also need all your information about your earnings and all major transactions in the last couple of years. Plan on spending some time with Don Shaw to prepare the paperwork! Give us a call and we will be happy to discuss your options.

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