Court Fees May Be Waived - At A Cost

There may be one reason not to have an attorney work on your bankruptcy. It's an edge-case, but just so you know, here is the lowdown. The benefit to you is that the court will waive your fee. The cost to you, however, is that you have to go it alone - no attorney!

If your income is less than 150% of the poverty level (as defined in the Bankruptcy Code), and you are unable to pay your Chapter 7 fees, the court will attempt to allow you to make payments in installments. If, however, the court determines that even in installments, you are not able to afford the fees, the court may waive the requirement that the fees be paid. This allowance only applies if you don't have an attorney.

We all know what various courts think of you going before them without an attorney. So if you are able to represent yourself in court, and navigate all the paperwork, and understand all the procedures available to you to get the most out of your bankruptcy, then you might save yourself the court fees if you qualify. After you are all finished, the amount you spend on migraine medication might be less than the court fees. Or not.

Click here to see the current court fee - U.S.C. § 1930.

Don't Let Your Case Be Delayed

The easiest way to get your case waylayed is to delay action. We understand you are busy and life goes on while you are filing. You should understand, though, that some bankruptcy documents are time-sensitive.

You must provide evidence of all earnings you received during a period of 60 days prior to your bankruptcy filing date.

Also, you must submit a certificate of credit counseling, and you need to complete your credit counceling before your case is filed. So not completing your counceling will postpone your filing date. The postponement will likely cause your earning statements to no longer reflect the 60 days prior to your filing. As a result you will have to submit more earning statements for the missing time period.

If you delay turning in say ..., your tax returns, but do submit your earnings statement, you could be in trouble. Since the law requires you to submit information about your earnings for 60 days prior to your filing date, anything which requires your filing date to be moved, will mean that a new 60 day period will be in effect. As a result of moving your filing date, your previous earning statement will become outdated.

Another way to make your earning statements outdated is to delay paying your fees. If you have fees which the office requires before your case can be filed, delays will mean that your earnings statements can become stale.

We know it's easy to get distracted, but much of your distraction is probably caused by factors which will be erased when you file for bankruptcy, so getting your documents in order on time is really an easy thing to do to get your life back on track.

Must You File Your Tax Returns?

You are going to have to. It's part of the bankruptcy law.

Your Chapter 7 or Chapter 13 case begins when our office files on your behalf a petition with the bankruptcy court which serves the county where you live. In addition to the petition, we also file with the court a schedule of assets and liabilities, a schedule of your current income and expenditures, a statement of your financial affairs, a schedule of executory contracts and unexpired leases, and tax returns.

Through our office, you will have to provide your trustee with a copy of your tax return for the current tax year as well as tax returns for future years which occur during the length your case. Also, you will have to provide tax returns for prior years that have not been filed when your case begins.

Bankruptcy Without An Attorney

It's true, you don't need an attorney to file for bankruptcy. What do you think bankruptcy courts have to say about not using an attorney? Seriously, over time they've seen what happens to people who try to do it themselves. Perodically, we meet clients who tried it themselves and then got into a big mess. Getting such situations cleared up is not easy. In our opinion, it's just not worth it to try to go to court alone.

In case we haven't convinced you, you know that your case will be dismissed if you don't abide by the bankruptcy rules. Here's an simple example, did you know that within Federal Rules of Bankruptcy Procedure it says that

If an individual debtor in a chapter 11, 12, or 13 case has claimed an exemption under § 522(b)(3)(A) in property of the kind described in § 522(p)(1) with a value in excess of the amount set out in § 522(q)(1), the debtor shall file a statement as to whether there is any proceeding pending in which the debtor may be found guilty of a felony of a kind described in § 522(q)(1)(A) or found liable for a debt of the kind described in § 522(q)(1)(B).

[Fed. R. Bankr. P. 1007(b)(8)]

Right. Of course. Well, We know what this means and how it may apply to your case. That's our job! We protect your interests and get you through your successful bankruptcy. Don't let your case get dismissed by not hiring an experienced bankruptcy attorney.

How To Get Your Credit Report For Free

As you may know, there are three major credit reporting agencies: Equifax, Experian, and Trans Union. The Fair Credit Reporting Act allows you to request a free copy of your credit report once every 12 months from each of the agencies, but it also provides exceptions if a company takes adverse action against you, if you are unemployed or collecting welfare, or if your report is inaccurate because of fraud, or identity theft.

Before you do a search for agencies which will charge you for your report, check out the Federal Trade Commission's page which explains how you can get free access to your credit report, how long it will take, who to contact, and “Imposter” websites to avoid. Another great resource is the Federal Deposit Insurance Corporation (FDIC) website. They have contact information for the individual credit reporting agencies.

When you request a copy of your credit report, don't contact the agencies directly, you can request your report by phone, on the web, or by filling out a form and mailing it in.

You can order a free credit report:

On the Internet:
annualcreditreport.com

On the phone:
Call 1 (877) 322-8228

By mail:
Complete the Annual Credit Report Request Form
and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Bad Examples

You know that you have to tell the truth in your bankruptcy, but not everyone else may. If you take a quick look at IRS.gov's page titled "Examples of Bankruptcy Fraud Investigations - Fiscal Year 2010" you might not believe your eyes.

Remember that every part of your bankruptcy filing will be scrutinized by the office of the United States Trustee. This office is part of the United States Department of Justice. Dismissal of bankruptcy cases, fines and even prison are not uncommon for people who try to deceive the court.

Your Trustee Can Sue You!

The interwebs have had quite a time with Teresa Guidice of the Real Housewives of New Jersey. Our hearts go out to her for her current financial dilemma. She and her husband might have brought some troubles upon themselves, however, which bankruptcy cannot fix. United Press has reported that the Guidices have been sued by their Chapter 7 trustee for failing to report assets in their bankruptcy petition, and the trustee also alleges that the tax returns submitted by Teresa and Joe Guidice are fraudulent.

Ok, this is serious, and something from which we all can take note. The Guidices are facing a complaint under Section 727(a)(4) of the Bankruptcy Code which

bars a Chapter 7 discharge to a debtor who knowingly and fraudulently, in or in connection with the case—

(A) made a false oath or account;
(B) presented or used a false claim;
(C) gave, offered, received, or attempted to obtain money, property, or advantage, or a promise of money, property, or advantage, for acting or forbearing to act; or
(D) withheld from an officer of the estate entitled to possession under this title, any recorded information, including books, documents, records, and papers, relating to the debtor’s property or financial affairs;

The outcome of the trustee's allegations could be that Teresa and Joe's Chapter 7 bankruptcy will be dismissed. This would mean that all their creditors would be able to begin collection actions against them. It might also mean they are guilty of perjury which carries a penalty of up to 5 years in jail.

The lesson here should be clear: Don't lie in your bankruptcy! When you submit documentation and declare information related to filing a bankruptcy, you can be certain that the trustee has independent confirmation of all the information you provide, so catching you in a lie is easy as pie. And no one wants to go 5 years without pie.

Secured Loans In Your Bankruptcy

A Secured Debt is any loan where the outstanding balance is covered by some 'item of value.' Often the item of value is the object which was purchased with the loan - like a house or a car. By having the right to take back the item of value, banks can guarantee a return on the amount of the loan or even a line of credit which was extended to you. In short, the ability to take back the item of value makes the debt a Secured Debt.

If you have a loan from a bank, it is most likely a secured debt. When a bank extends to you a loan, in exchange for granting their loan, you pledge some type of collateral. This collateral is some item of value which will be handed over to the bank in the event that you can't make payments on the outstanding balance. When a bank makes this sort of loan, is usually referred to as a Secured Loan.

Secured Loans are usually a good deal for customers. The interest rate is probably a bit lower than non-secured loans. So over time, you will pay back less money in both finance charges and interest rates.

Secured Loans often provide incentives for you to make payments on time. Depending on the terms of your loan agreement, the bank could declare your loan to be in default after a number of late payments, or if you fail to make any payments at all during a certain period. The bank believes that making your payments on time helps to ensure you do not lose your valuable asset. Sometimes, however, unforeseen events happen.

A Secured Loan may allow you to use the 'item of value' itself as collateral on your loan. This means that the bank is holding a lien against the item until your loan balance is paid back. If you used a Secured Loan to buy a car, for example, even if your loan has gone into default, it is very unlikely that the bank will attempt to come after your other assets. They will attach a claim against the car itself, and nothing else.

Plan Modifications

Your bankruptcy Plan is a multi-year commitment for you to pay what you can towards your debts. If your financial situation has changed, however, you might not be able to meet your payments. If you would like to make changes to your Chapter 13 payment schedule - perhaps to make smaller payments, you may contact our office. On your behalf we will be able determine of you might qualify for a Chapter 13 Plan Modification, and submit the proper paperwork to your trustee for approval.

Faxing Documents To Our Offices

Our Fax number is (415)282-9847. Often people would like to know if we got their fax. The fastest way to get a confirmation is to include a cover page along with your fax. On the cover page include your email address, and ask that confirmation of the fax be sent via email.

Emailing The Office

We understand that sometimes it is easier for you to communicate with our office via email. If you don't know the name of the person who is preparing your documents, you may call or email our offices to get their direct email address. Our office has a front-door email address if you don't have a specific person's email address: lawoffices@lacavalaw.com.

Contacting The Attorney

Will Richard A. La Cava take your calls? Yes, of course! Remember, however, that he has a busy schedule, and some days he is in court for almost a whole day. So if you would like to speak over the phone with the attorney, it is best to call the office and let us know the best time to call you back. The attorney will always return your call; if there is some piece of information that a member of his staff can relay to you, you may get a call back from a staff member. If you have to speak directly with the attorney, he will of course be happy to speak with you. So if Richard A. La cava is not available at the time you call, be sure to make an appointment for a call back.

Contacting Our Staff

Our staff are very talented and very busy professionals. They are here to help you to successfully complete your bankruptcy. Most of their time is spent with the attorney preparing your bankruptcy documents, so getting someone on the phone when you call might be hit or miss. The staff, however, will always call you back, usually the same day. So when you do call, be prepared to offer a time when your call can be returned, this way the staff can pull your file, review your case, and be prepared to speak with you about your case when they return your call. We have English and Spanish speaking staff.

Visiting Our Offices

You are always welcome to visit our offices. You should, however, be sure to make an appointment. It's easy, just call ahead and we will put you on the calendar. For many visits our staff must pull your file, review your case, confirm information with various sources, etc. So we need to be prepared for your visit, even if you are just dropping off documents. As you can imagine, we have many more clients than staff, so scheduling appointments prevents overbooking. The attorney sometimes gets behind on busy days, but not often. We want to make sure you are in & out quickly and efficiently. You can make an appointment by calling our office. We will be able to make time for you during normal business hours. Parking on 24th street can be tough on Saturdays due to the farmer's market down the street. We recommend parking on the side streets North of 24th Street where there are no meters.

Yes, We Can Help Get Your Credit Report

You should be able to get a credit report from each of the popular reporting agencies. Unfortunately these entities may not deliver your report to you in a timely manner for various reasons. If you are pressed for time in filing your bankruptcy, or the due date for your paperwork is drawing near and your credit report is nowhere in site, our offices have a link to the credit reporting agencies.

We can get your credit report to you in a very short period of time. The agencies charge us for the privilege, so there will be a cost, but when you are in a pinch the expedited delivery is well worth the service fee. You may call our office if you would like more information.

Your Trustee

A court appointed trustee oversees bankruptcies filed in California. Your trustee's office is responsible for collecting the payments you make towards your bankruptcy repayment plan if you have filed a Chapter 13 and then disburse the payments to the creditors who are listed in your bankruptcy. In a Chapter 7 filing, the trustee will oversee the sale of assets and their disbursement to creditors who are listed in your bankruptcy.

It has been our experience that each trustee's office will be very responsive if you need information from them. Contact information for every trustee's office in Northern California can be found on the lacavalaw.com website.

Bankruptcy Credit Report Expiration

When you file for bankruptcy, the record of your filing is not on your credit record forever. Under the Fair Credit Reporting Act (as amended October 2001), bankruptcy records expire from your credit reports after 10 years. Some credit reporting agencies have an unofficial policy of removing Chapter 13 bankruptcy records from your report after 7 years.

In your credit report, debts which were included in your bankruptcy expire independently of your bankruptcy filing. After you file for bankruptcy, you will see that each of the files marked as "Included in BK" on your credit report are creditors which were included in your bankruptcy. The designation of "Included in BK" will remain up to 7 years from your filing date.

Bankruptcy Court Document List - Chapter 7

Here is a list of documents our office will file on your behalf with the courts if you file a Chapter 7. The following documents will be submitted to the court for a Chapter 7 filing:

• 
  Form B1 Voluntary Petition
  
• 
  Form B3A Application to Pay Filing Fee in Installments (optional)
  
• 
  Form B3B Application for Waiver of Chapter 7 Filing Fee (optional)
  
• 
  Exhibit D to Form B1 Debtor's Statement of Compliance with Credit Counseling Requirement
  
• 
  Verification of Creditor Matrix
  
• 
  Form B21 Statement of Social Security Number
  
• 
  Form B6 Summary and Declaration of Schedules
  
• 
  Form B6A Schedule A - Real Property
  
• 
  Form B6B Schedule B - Personal Property
  
• 
  Form B6C Schedule C - Property Claimed as Exempt
  
• 
  Form B6D Schedule D - Creditors Holding Secured Claims
  
• 
  Form B6E Schedule E - Creditors Holding Unsecured Priority Claims
  
• 
  Form B6F Schedule F - Creditors Holding Unsecured Nonpriority Claims
  
• 
  Form B6G Schedule G - Executory Contracts and Unexpired Leases
  
• 
  Form B6H Schedule H - Co-Debtors
  
• 
  Form B6I Schedule I - Current Income of Individual Debtor(s)
  
• 
  Form B6J Schedule J - Current Expenditures of Individual Debtor(s)
  
• 
  Form B6 Declaration Concerning Debtor's Schedules
  
• 
  Form B7 Statement of Financial Affairs
  
• 
  Form B8 Chapter 7 Individual Debtor's Statement of Intention
  
• 
  Form B22A Chapter 7 Statement of Current Monthly Income & Means Test Calculation
  
• 
  Form B23 Debtor’s Certification of Completion of Financial Management Course
  
• 
  Form B201 Notice to Individual Consumer Debtor
  
• 
  Form B240 Reaffirmation Agreement with Order (If applicable)
  

Bankruptcy Court Document List - Chapter 13

There are lots of documents involved in a bankruptcy. These are not documents you have to worry about, they are the responsibility of our office. You might hear the names of these documents in passing as you learn about the bankruptcy process. Again, don't worry about them, our offices handle filling out the documents on your behalf as required by the court.

Let's start with Chapter 13. The following documents must be submitted to the court for a Chapter 13 filing:

• 
  Form B1 Voluntary Petition
  
• 
  Form B3A Application to Pay Filing Fee in Installments (optional)
  
• 
  Exhibit D to Form B1 Debtor's Statement of Compliance with Credit Counseling Requirement
  
• 
  Verification of Creditor Matrix
  
• 
  Form B21 Statement of Social Security Number
  
• 
  Form B6 Summary and Declaration of Schedules
  
• 
  Form B6A Schedule A - Real Property
  
• 
  Form B6B Schedule B - Personal Property
  
• 
  Form B6C Schedule C - Property Claimed as Exempt
  
• 
  Form B6D Schedule D - Creditors Holding Secured Claims
  
• 
  Form B6E Schedule E - Creditors Holding Unsecured Priority Claims
  
• 
  Form B6F Schedule F - Creditors Holding Unsecured Nonpriority Claims
  
• 
  Form B6G Schedule G - Executory Contracts and Unexpired Leases
  
• 
  Form B6H Schedule H - Co-Debtors
  
• 
  Form B6I Schedule I - Current Income of Individual Debtor(s)
  
• 
  Form B6J Schedule J - Current Expenditures of Individual Debtor(s)
  
• 
  Form B6 Declaration Concerning Debtor's Schedules
  
• 
  Form B7 Statement of Financial Affairs
  
• 
  Form B22C Chapter 13 Statement of Current Monthly Income & Disposable Income Calculation
  
• 
  Form B23 Debtor's Certification of Completion of Financial Management Course
  
• 
  Form B201 Notice to Individual Consumer Debtor
  
• 
  Chapter 13 Plan