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I’m required to give you three legal disclosures
There are three required bankruptcy notices. Now that consultations are by phone and Zoom, I’m posting these.
The first bankruptcy disclosure
This first disclosure tell you that you have four choices under the bankruptcy law.
- Chapter 12 is only for farmers, and fisherman. I’ve never done a farmer
- Chapter 11 is for business people like Donald Trump. I’ve never done Donald Trump
- Chapter 7 is the most common bankruptcy. Most people get discharged from most debts in about four months.
- Chapter 13 is a payment plan through the bankruptcy court.
- If you are behind on your mortgage, Chapter 13 can give you time to catch up.
- If you owe taxes, Chapter 13 can give you time to pay without more interest or late fees.
- If you are making too much money to file Chapter 7, chapter 13 pays your debts over five years.
- If your house would get sold in Chapter 7 bankruptcy, Chapter 13 can save the house.
Those are my explanations. the required notice explains them somewhat differently. That notice is here.
That notice also reminds you if you lie to the bankruptcy court, you can go to jail.
(Congress really wants you to know about those four choices. They are also on the Bankruptcy Information Sheet, you can read here.)
The second disclosure reminds you again to tell the truth. And it also tells you that you may be subject to audit. (The bankruptcy law calls for an audit of one case out of every hundred. Sometimes there’s no money in the budget, so they skip the audits; sometimes they do them.)
Here’s that second disclosure.
The Third Bankruptcy Disclosure
The most important part of the third disclosure is that your lawyer is required to give you a price and tell you what he’ll do.
For Chapter 7 bankruptcy, my work schedule and payment schedule is here.
The third disclosure also includes an unhelpful list of the steps in a bankruptcy case. Here it is.
Is there something you are tempted to lie about?
When we talk, let me know about problem areas that might come up. We’ll figure out the best way to handle them. (For some people the best way is do NOT file bankruptcy.)
Although it’s very, very rare, your creditors was an almost unlimited right to ask you questions in bankruptcy. (Bankruptcy Rule 2004.)
Let’s talk in full, up front if there are any problems like that.