Opportunity For You!!

Posted on April 27, 2013 by Scott_Simons

We are giving you the opportunity to be a Guest Blogger on our site www.713Bankruptcy.com as well as have your post sent out in the www.713Training.com  newsletter that has several thousand subscribers.  Guest Blogging can help you network with others, help you acquire new clients; help optimize your website and much more.  This is also a great opportunity for 713Training to get some fresh information and different viewpoints to share with our readers.

Along with your post you should include a couple of sentences about yourself as well as a link to your website or Facebook page.  If you are interested in in this opportunity simply email info@713Training.com with your contact info and the topic you want to write about and we will respond within two business days.

These are some of the guidelines for Guest Blogging:

Your post must be relevant to the industry in some way.  Below are some general topics to consider:

  • Bankruptcy Law
  • Bankruptcy training tips
  • Personal Growth
  • Productivity Tips for VBAs or Attorneys
  • Motivational or inspirational experiences
  • Marketing tips for VBAs or Attorneys
  • Business Development for VBA’s or Attorneys

 GUIDELINES

  • Your post needs to be original and not previously published.
  • You may provide up to two links to be cited in your post.
  • Your post should be at least 500 words long but no longer than 2,500 words
  • Your post should consist of  high quality content

EDITING

We may copyedit your post for grammar, punctuation, spelling, etc.

We forward to hearing from you.  If you have any questions call or email and one of our friendly team will assist you.

 

Sincerely,

-The 713 Training Team
www.713Training.com
1-800-535-9984

Join our LinkedIn group: www.linkedin.com/companies/713training.com-llc

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Disclaimer: We at 713Training.com are not attorneys; any information provided by 713 Training should not be considered legal advice.  The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.

 

 

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Bankruptcy Forcast 2013

Posted on April 18, 2013 by Scott_Simons

A lot of Virtual Bankruptcy Assistants(VBAs) and Attorneys will ask us if bankruptcies are decreasing or increasing  and what is happening  with the market.  Well I have good news, after a slight decline in bankruptcies last year Bankruptcies are expected to increase this year by 8% or more and with the increase many attorneys are looking for help to be able keep up with the increased demand.

The following is from Andrew Miller’s article on USBLAWG dated November 15th 2012:

…bankruptcies are expected to increase in 2013. Faced with an increasing volume of bankruptcy petitions, bankruptcy lawyers will have a decision to make: hire additional staff or invest in technology to manage more cases without additional staff.

Judge Julia Gibbons, chair of the budget committee of the Judicial Conference of the United States, which oversees the federal court system, told a Congressional committee earlier this year that court administrators expect bankruptcy filing to increase by 8 percent or more in 2013.

The court administrators’ projections assume consumer debt levels will start to climb again, resulting in more bankruptcies. Consumer spending increased by 3.3 percent in 2011 after a decline in 2010, according to data released by the U.S. Bureau of Labor Statistics in September. Stronger economic growth forecast for 2013 by Moody’s Analytics, an independent provider of economic forecasting, could make people feel more comfortable about opening their wallets and about taking on new debt.

If housing foreclosures pick up next year with the recovering housing market, then consumer bankruptcies will increase at an even faster pace in 2013, Gibbons predicted.

Bankruptcy filings are expected to increase to 1.47 million filings in 2013, Gibbons said in testimony to a U.S. House of Representatives appropriations panel.”

This is good news for Bankruptcy Attorneys and VBAs alike.  If you are an Attorney or a VBA and are looking to expand or you are looking to become a VBA then call or email us and one of the 713Training Team will be glad to assist you.

For more info if you are a VBA or wanting to become a VBA:
http://www.713training.com/categories/Getting-Started/

For more information about products for your law firm:
http://www.713training.com/categories/Bankruptcy-Attorney-Tools/

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Can I sell My VBA Business?

Posted on March 30, 2013 by Scott_Simons

YES you can and in Fact many Virtual Bankruptcy Assistants (VBA’s) have sold their Businesses and I am going to answer some IMPORTANT Questions about selling your VBA Business.

What are some of the reasons a VBA would sell their Business?

The first questions buyers will ask is; Why you are selling your VBA Business if it is such a good business?  You may be asking yourself the same questions right now so I have listed some of the reasons why people sell good VBA Businesses:

  • Owner wants to Retire
  • There are Health Issues
  • Partnership Disputes
  • The Owner can’t handle the business or the business growth
  • The Owner is ready for a change

What is my VBA Business worth?

To keep it simple your VBA Business is most likely worth 1.5 to 2 times your adjusted net profit.  Adjusted Net Profit will be slightly lower than Gross Income for most VBA businesses since most VBA Businesses have very few actual business expenses.  The common exception to this would be a larger VBA Business with additional expenses such as rent, payroll and insurance etc….

So if you make $100,000 a year with your VBA Business you should be able to sell your VBA Business for $150,000 to $200,000.

How long do I need to own my VBA Business before I sell it?

Having two or more calendar years of business operations and financials is ideal in order to sell your VBA Business.  This is enough of a track record for buyers to make an educated decision on the business and will also allow for a buyer to get an SBA loan on the businesses if needed.

Although two years is ideal many VBA Businesses sell with less than two years history and if the business is valued at under $100,000 then length of operation is less significant.

What are some of the factors that will affect the value of my VBA Business?

  • Size-Businesses with higher Sales Volume usually sell for a higher multiple.
  • Income Trends-Declining sales trends decrease value, whereas trends of sales growth increase value.
  • Provable Books and Records-If income is hard to prove it decreases what buyers are willing to pay for the business.
  • Terms-Being flexible and offering terms to qualified buyers will typically increase the amount a business will pay.

How long will it take to sell my Business?

This may vary greatly as some VBA Businesses will sell in a couple of months and some will take over a year however, 5 to 6 months seems to be the average time it takes to sell a VBA Business.

In general, smaller VBA Businesses tend to sell quicker than large ones since there are more buyers with the financial ability to acquire them and often buyers do not need SBA loans on smaller businesses.

What are some things buyers look for when buying a VBA Business?

  • Provable Books and Records
  • Established Website
  • Standardized Forms and Documents
  • Solid base of attorneys (ideally no one attorney makes up the majority of your case load)
  • Reasonable Price
  • Leverage and Terms
  • Training
  • No Big Surprises

How will I get paid when I sell my VBA Business?

A Typical VBA Business acquisition consists of the following elements:

  • Buyer’s Cash
  • Institutional Financing (SBA, home equity or other institutional loan)
  • Seller Financing (typically 20% to 50% of the purchase price)

This means that you will most likely get the majority of your money at closing and that you will be financing the remaining portion of the purchase price for the buyer, although in some cases you may get cashed out at closing.  The good thing about seller financing is that you may defer or save taxes, you will make interest on the seller financing and you will have a UCCU filing on the business which may allow you to take the business back if the buyer defaults on the loan.

How do I sell my VBA Business?

Selling a business is not the easiest thing to do but the good news is that we can help you.
Many of the 713Training Team have sold their businesses including one VBA Business for 1.2 million dollars. 713Training has several qualified buyers that are waiting to find an existing VBA Business so if you want to sell your VBA Business or have any questions call or email and we can assist you.

If you are not a VBA yet then you need to call or email 713Training today so that we can help you Get Started on becoming a VBA and then we can help you sell your VBA Business when you are ready.

*This article was written by Scott Simons who is the Operations Manager at 713Training, a VBA, and a Certified Business Intermediary who has sold over 100 businesses.  We hope that this article was informative and if you have any questions regarding this article or about any of the products or services offered on www.713Training.com make sure to call or email us.

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Tax Refunds. How does this money affect your cases?

Posted on March 2, 2013 by Scott_Simons
It’s tax time.  How does this money affect your cases?Note:  this will help those of you who either don’t have a wildcard exemption or have used up the exemption with other assets.

 As you examine a case you are writing, look for the history of tax refunds from their old 1040’s and state tax records.  If you see a likely refund coming, you may want to consult the attorney and warn of the jeopardy to the pending tax refund.

On the day that your client files, all of their property, including unpaid tax refunds, will fall under the control of the Chapter 7 trustee.  The trustee has temporary control of this property and will look for any nonexempt property that he or she can take for the benefit of creditors.

Assets like cash, balances in bank accounts, stocks and of course tax refunds, are nonexempt assets under most state laws and can be taken by the trustee.  There are certain exceptions to this rule, but generally, you should plan to work closely with the attorney to learn how to protect these assets before filing the client’s case.

Here is how you can explain this concept to the client:

Tax refunds and Chapter 7

See below, to see how we touch on Tax Refunds and Chapter 13.

As you work throughout the year, you become the owner of your pending tax refund.  For example, on July 1, 2012, you are the owner of 1/2 of the tax refund you plan to receive in early 2013.  Therefore, if you file your Chapter 7 bankruptcy on July 1, the trustee will  have the right to demand that you pay to him or her 1/2 of your refund when you receive it the following year.

Our experience shows that during the latter part of the year, trustees become interested in the following year’s tax refunds.  For example, if your hearing (which takes place approximately 5 weeks after you file) is set after August 1, you can expect the trustee to ask you to plan on turning over next year’s tax refund when you get it the following year.

However, you are only expected to turn over the prorated share of the refund that you had earned up the date that you file.  Again, to illustrate this point, if you file on October 1, you will have worked 3/4 of the year.  At your hearing in early November the trustee will ask you to turn over 3/4 of your tax refund when you receive it.   Some trustees will lead you to believe they are entitled to the entire refund, which is not accurate.

If you file after the new year begins and before you get the refund, the trustee will ask for the entire refund.  For many clients who file in January or February, they must file to stop a foreclosure, garnishment or repossession that will take place before they get the refund.  These clients will plan to forfeit their refund.

Ideally, you will be able to postpone your filing until after you receive the refund and spend it appropriately.  Generally, if the money is spent to fund your bankruptcy case, purchase exempt property, pay your rent or mortgage or used for living expenses, the trustee will not ask for the money.  You will need specific guidance from your attorney before you spend cash that you have in your possession before you file a bankruptcy case.  If you file your case in late Winter or the Spring, the trustee will routinely ask you how you spent any refund that you had received and you may be required to produce receipts to prove it was spent appropriately.

Finally, it is important to remember the purpose of a Chapter 7 is to make any nonexempt assets available to the trustee so he can give something to your creditors.  Often, clients will plan to let go of certain assets or some cash knowing it is a small price to pay for a complete discharge of their debt.

Tax refunds and Chapter 13

Most jurisdictions require a Chapter 13 client to turn over a portion of their tax refund during each year they are in a Chapter 13 plan.  If you have not yet filed for a client who is going into a Chapter 13, you will want to analyze their situation as you would a 7 above.  However, the difference is, the client will get to keep the refund, but will have to pay back any non-exempt portion in his or her plan.

The best move is to see if you can put off filing until the asset is delivered to the client and they have a chance to convert it to non-exempt status with the help of their attorney.  You’ll see how we have given a rough guideline on how to spend non-exempt cash just before filing to avoid a trustee asking for turnover.

If you have a Chapter 13 client who has already filed and is in a confirmed Chapter 13, then tax time is still important.  If you provide paralegal support on open Chapter 13 cases, remember, the client will be required to turnover their refund to the Chapter 13 trustee.  However, they get to keep some of it.  In most jurisdictions, the debtor can keep the first $1,000 of the refund (Line 74a of the 1040 Form) and the first $1,000 of any additional child tax credit (Line 65 of the 1040 Form).  Any amount left over would be turned over to the trustee.

Sometimes the client forgets or intentionally keeps the whole refund.  This will result in a Motion to Dismiss filed by the Trustee.  If you really want to make yourself valuable to your attorneys, offer to help write and file Motions to Abate and Retain Tax Refunds.   At 713 Training we can give you the tools to offer these prepared documents.  Also, and more importantly, we can help you file the documents that will give the attorney additional fees in the case for filing these motions.

How to Spend Tax Refunds Before Filing

 In most jurisdictions, a Chapter 7 trustee, and sometimes the Chapter 13 trustee, will scrutinize how the client got rid of non-exempt assets right before filing.  Here is a rough guideline that will help a client spend the money before filing.  IT IS IMPORTANT the client consults closely with his or her attorney before spending non-exempt cash.

Here are the 4 categories you can use to convert this important non-exempt asset:

Bankruptcy Costs

    1. Filing Fee for your bankruptcy case.  This is either $306 for Chapter 7 or $281 for Chapter 13.
    2. Attorney Fee
    3. Credit Counseling Certificate Fee
  2. Rent or Mortgage
    1. We have found trustees routinely allow debtors to pay their rent or mortgage for the current month in which they file and one additional month.  So, for example, if you file on February 10th, you can use the cash to pay for February and March.
  3. Exempt Property
    1. We have given you a complete list of the property recognized by the state law as exempt.  It is expected that debtors will perform pre-bankruptcy planning by consulting with their attorney to create the exempt property shopping list.
  4. Monthly Living Expenses
    1. Utilities
    2. Phone
    3. Car Repair and/or Maintenance
    4. Insurance payments

Sincerely,
The 713 Training Team
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Happy Holidays from 713Training

Posted on December 15, 2012 by Scott_Simons

We hope that you and your family are having a great Holiday Season!  The 713Training Team is enjoying the Holidays and we have been working hard.  We have some new products we will be releasing at the beginning of the year as well as we are preparing for our upcoming Training Seminar in Denver, March 2013.  For more info on this seminar visit the following link:
http://www.713training.com/categories/Seminars/

As our Holiday Gift to you here is a coupon code for 20% off your next purchase from 713Training.com now thru the end of the 2012.  Simply enter the code   2012HOLIDAY   when checking out with your purchase from www.713Training.com

Also if you have any questions please call or email us and one of the 713Training Team will gladly assist you.

Sincerely,
The 713 Training Team

 

 

 

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Ch 7-Ch13 Bankruptcy and Marketing Seminar & Chapter 13′s Made Easy Seminar

Posted on November 28, 2012 by Scott_Simons

We invite you to check out 713Training’s Upcoming Seminar for VBA’s, Bankruptcy Attorney’s and their Staff.  This is a Great Opportunity to sharpen you and your staff’s skills regarding Chapter 7 and Chapter 13 bankruptcies.  CHECK OUT the following link to get more Information and sign up for the Seminar: http://www.713training.com/categories/Seminars/

A LARGE PART OF THIS SEMINAR WILL BE WRITING ACTUAL CHAPTER 7 AND CHAPTER 13 PETITIONS.  IT WILL BE INTERACTIVE AND ATTENDEES WILL SEE REAL CASES IN REAL TIME AND BE ABLE TO FOLLOW ALONG ON LAPTOPS.

Basic Info:

DATE:  Friday, March 8th and Saturday March 9th, 2013

TIME:  9:00am – 5:00pm Each Day                                                                           LOCATION: Denver, Colorado (next to the Airport)

INSTRUCTORS AND PRESENTERS:

Heath Isaacs, Bankruptcy Attorney
Ann Marie Bright, Bankruptcy Paralegal
Scott Simons, President, 713Training.com
Special Guest

Free Gifts for Attending- Over $250 Value

  • Sample Pleadings
  • Sample Affidavits
  • Lien Stripping Package – Pleadings and Letters
  • Case Management Software
  • Timelines/Deadlines Spreadsheet
  • More!

For more information or to sign up visit us on the web or feel free to call one of the 713Training Team!
http://www.713training.com/categories/Seminars/

We hope to see you there,

The 713 Training Team
1-800-535-9984
www.713Training.com

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The Difference between a Paralegal and a Virtual Bankruptcy Assistant

Posted on September 16, 2012 by Scott_Simons

Are you like most Americans, uncertain about job security, and wanting to find work that will provide an income even during these difficult economic times? The chances are that if you are reading this newsletter, you fall into that category, and have turned your attention to the opportunities available in working in the legal system.

In the legal system there are many opportunities for good work where one can earn an income without having to go through the long and expensive efforts of becoming an attorney. These opportunities are support roles, such as being a paralegal or a virtual bankruptcy assistant, in the legal system where people like you can earn a living while providing support in the courts or in the offices of attorneys. Reading this newsletter you are probably a person looking for the best opportunity for you in the legal industry, and are probably trying to determine whether being a paralegal or a virtual bankruptcy assistant is right for you.

What is a Paralegal?

Paralegals are professionals trained to support lawyers in various legal capacities and office duties. Paralegal work involves more responsibility than clerical tasks, and includes a broad range of complex legal work.  Paralegals perform legal research, draft legal documents, interact with clients, and organize and manage cases. Paralegals are often involved in challenging assignments that would otherwise be performed by lawyers, but cannot provide legal services directly to the public unless permitted by law.

Lawyers often can deliver legal services more efficiently and economically with the aid and experience of paralegals, who are also called legal assistants. Paralegals can help gather and manage large amounts of data to assist the lawyer to produce better quality work under pressure. The vast majority of the work done by paralegals is performed in the offices of an attorney involving legal tasks that require specialized training and education.

Competition for paralegal positions is intense as there are many people seeking the opportunities available in the current market. Attorneys are able to select from a larger pool of candidates than ever before, allowing them to choose the most qualified individuals. To become a valuable paralegal candidate a person can obtain certificates and associate degrees that will set them apart from those who have not made the efforts to gain education.

As higher education costs continue to rise, the price to become an educated and certified paralegal also continues to rise, and in many cases can cost well over $20,000 to achieve. As most people do not have an abundance of cash and savings to spend on schooling there are many alternatives to financing this education, such as getting federal Pell grants and student loans.

After 2-4 years of education and training, a person is prepared with the degrees and certifications necessary to making them marketable in the paralegal industry. The starting wages for a paralegal are generally around $15 per hour and upwards of $30 per hour after they have several years of experience are under the belt. There are many opportunities available to people willing to make the effort to become a paralegal

What is a Virtual Bankruptcy Assistant?

The concept of a Virtual Bankruptcy Assistant began back in 2001 when a paralegal named Victoria Ring and the attorney she was working for decided to try an experiment with bankruptcy preparation. Working as a paralegal for two attorneys in a typical bankruptcy law firm practice, one day one of the attorneys was watching Victoria work and recognized she was interrupted every 10-15 minutes while trying to compile a bankruptcy petition.

Knowing the bankruptcy petition is the most important document for ensuring a smooth process throughout the case, the attorney had an idea. He said to his partner: “Let’s see how the efficiency improves if we take the bankruptcy petition preparation outside the law firm and allow Victoria to work part-time from her home.”

The next weekend the attorneys moved a desk, computer, and a chair into the spare bedroom of Victoria’s home. In a single weekend she was able to prepare 15 bankruptcy petitions without any interruptions like phone calls, customers dropping by and other office employees asking her for help.

BENEFITS FOR THE BANKRUPTCY LAW FIRM

Not only were the attorneys able to have more cases prepared in a short period of time, but also the quality in the detail improved significantly. This resulted in:

** Eliminating almost all the deficiency notices from the court;
** Less phone calls from clients asking when their petition would be completed;
** Reduction of the overall paperwork for the law firm; and
** Created more income since cases were filed more expediently.

HOW THE IDEA GREW

When Victoria Ring saw how this idea was benefiting the law firm she worked for, she decided to introduce the concept to other attorneys so they could benefit also. That is when Victoria developed an Internet company and presented her ideas to attorneys across the country in larger cities like New York, Atlanta, Chicago, Los Angeles, etc. Within 9 months of developing the website she was earning over $100 per hour and had a client base of 56 attorneys and was able to quit her full-time job, and never looked back.

After being the first successful Virtual Bankruptcy Assistant, Victoria started creating training materials to teach others the ins-and-outs of starting and running a virtual bankruptcy assistance business. These training materials grew into the opportunity that is now available at 713Training.com.

Becoming a Virtual Bankruptcy Assistant can be accomplished in just a few short months and with only a small investment of less than $2,000, thanks to the training available through 713Training.com.

FACTS

** Virtual bankruptcy assistants are trained professionals who work solely under the direction of bankruptcy attorneys.

** In contrast to a VBA, a paralegal is required to go through years of training, pay for expensive education, deal with high competition to find a job, work in an office, and have a much lower earning potential.

ADVANTAGES TO LAW FIRMS UTILIZING VIRTUAL BANKRUPTCY ASSISTANTS

** Attorneys do not pay the standard overhead costs associated with hiring a full-time or part-time employee. Virtual Bankruptcy Assistants charge one flat fee just like the bankruptcy attorney does.

** Attorneys do not pay for services until they are satisfied with the quality of work produced by the Virtual Bankruptcy Assistant. There are no financial risks for the law firm and the attorney can find the quality he or she is seeking.

** Attorneys do not invest in additional computer equipment or software. Virtual Bankruptcy Assistants maintain their own and are highly skilled in using their equipment and software or they would not stay in business.

** Paralegals and other law firm personnel are freed up to work on more complex cases. It is a known fact that the typical employee preparing petitions in a law firm is interrupted several times. This makes the information on the bankruptcy petition to not be consistent and precise, resulting in errors.

** Attorneys eliminate the need to train new employees. Most Virtual Bankruptcy Assistants stay with the same attorney for many years. Not only does this increase efficiency with bankruptcy petitions, but Virtual Bankruptcy Assistants get to know the clients, the local bankruptcy court and the attorney which helps them build a reliable reputation.

** Attorneys utilizing the services of Virtual Bankruptcy Assistants who have been certified through the VBA Certification Exam can be assured of high quality and professionalism.

Become a Virtual Bankruptcy Assistant Today!

If you haven’t already, start your journey to become a Virtual Bankruptcy Assistant today! Visit www.713Training.com and check out the complete training packages and other training materials offered to help you launch your VBA career!

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Upcoming Training Seminar – Southern California

Posted on May 25, 2012 by Scott_Simons

Ch 7-Ch13 Bankruptcy and Master Marketing Seminar &
Chapter 13′s Made Easy Seminar

Follow the Link to Sign Up: http://www.713training.com/categories/Seminars/

DATE:  Friday, August 10th and Saturday 11st, 2012
TIME:  9:00am – 5:00pm Each Day

LOCATION: Ontario, California (3 miles from airport)

Bankruptcy petition skills are needed by attorneys, paralegals, legal assistants, virtual bankruptcy assistants (VBA’s), and those studying to become VBA’s.  The problem is that these skills are not taught in any law school or paralegal course. NOW IS YOUR OPPORTUNITY to secure your financial future by learning the bankruptcy skills you need for your career.

With the knowledge you will learn at the exclusive and unique Ch7-CH13 Bankruptcy and Marketing Master Seminar and Chapter 13′s Made Easy seminar, you can immediately and confidently begin accepting and professionally completing bankruptcy work.

INSTUCTORS AND PRESENTERS:
Heath Isaacs, Bankruptcy Attorney
Ann Marie Bright, Bankruptcy Paralegal
Scott Simons, President, 713Training.com
Special Guest

SEMINAR TOPICS:
Friday – August 10, 2012

1.  Avoiding the “Gotchas” and Getting a Bankruptcy Case to Discharge (Chapter 7 and 13)

  • Understand the “Deadly” Timelines/Deadlines
  • How to Handle Cash Advances
  • How to Handle Divorces / Court Ordered Debts
  • How to Handle Child Support and Alimony
  • Understand Cross Collateralization

2.      Utilizing Pre-Bankruptcy Planning to Avoid Post-Filling Headaches

  • How to Determine When a Debt is or isn’t Dischargeable
  • How to Manage Non-Exempt Assets
    • Income Tax Refunds
    • Property Settlements
    • Cash
    • Excess Vehicle Equity
  • Moving Assets Prior to Filing
  • Insider Tips and Tricks to Bank Accounts

3.     When Should a 7 Really be a 13?

  • Learn to Recognize the Often Overlooked Advantages of a 13
  • When Striping-2nd and 3rd Mortgages is possible
  • Managing Mortgage Arrears
  • Stopping Foreclosures and Keeping Modifications Alive
  • Utilizing the Co-Debtor Stay
  • Managing Non-Dischargeable Priority Debt

4.      Marketing

  • Attorney’s-How to get more Clients
  • VBA’s-How to get more Attorneys

FREE GIFTS FOR ATTENDING Day One - Over $50 VALUE

  • Timelines/Deadlines Spreadsheet
  • And More

During class, attendees will be shown how to use this Timelines/Deadlines spreadsheet to manage their bankruptcy cases, which will help you to be able to quickly and easily manage your bankruptcy cases, and know exactly when and what is due, so that nothing will “slip through the cracks”, that could put the bankruptcy case in danger of dismissal, etc.

SEMINAR TOPICS:
Saturday – August 11th, 2012

1.    Mastering Chapter 13

  • How to Write and Confirm Chapter 13’s
  • Learn each Step from Consultation to Confirmation
  • How to Calculate a Chapter 13 Plan Payment like a Pro
  • The Secrets to Quick Confirmation

2.   Mastering the Means Test

  • Learn the Tricks that Satisfy the Trustee and Serve your Client
  • Discover the Common Pitfalls and How to Avoid them

3.   How to Strip a Mortgage from Residential Real Estate

  • Learn to Strip 2nd and 3rd Mortgages
  • Add additional fees to be paid to the attorney from the plan
  • Learn to research best practices in your jurisdiction
  • How to draft the Motions, Pleadings and Letters

4.    Perform Real Time Drafting and Calculation of a Chapter 13 Plan

  • You’ll not Only Learn the Skills, but Put them to the Test
  • Analyze and perform each step in a complex sample Chapter 13
    • Intake – Drafting – Plan Calculation – Confirmation

5.    Learn Often Overlooked Chapter 13 Tricks

  • Stripping 2nd and 3rd Mortgages
  • Stripping liens on other collateral
  • How to Keep a 3rd Vehicle
  • How to help Debtors keep Extra Real Estate
  • Handling non-filing Spouse cases
  • Much more!

6.   Marketing

  • How to Start, Grow and Sell your VBA Business

Free Gifts For Attending Day Two- Over $200 Value

  • Sample Pleadings
  • Sample Affidavits
  • Lien Stripping Package – Pleadings and Letters
  • Case Management Software
  • More!

THIS IS A HANDS-ON SEMINAR

In a hands-on training seminar, the focus is on YOU.  There is a great deal of audience participation and various bankruptcy issues and scenarios.  This accelerates learning and promotes better retention of the information.

For more information on the Seminar or to sign up call 713Training or click on the following link:
http://www.713training.com/categories/Seminars/

We hope to see to see you there.

Sincerely,
-The 713 Training Team
www.713Training.com

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401K Loans and Wage Garnishment

Posted on April 4, 2012 by Scott_Simons

We were doing a bankruptcy petition review for a virtual bankruptcy assistant prior to giving the petition to her attorney. One mistake we found was that in listing the 401K Loan as a Wage Garnishment. Since many people make this same mistake, I hope this article will help you to improve your skills.

First of all, never confuse any deduction coming out of a paycheck with a wage garnishment. A wage garnishment is a legal procedure that is conducted by a collector attempting to collect a debt. The collector has filed a lawsuit, obtained a judgment from a judge and filed the legal paperwork with the court to get permission for a wage garnishment to take effect. In other words, a wage garnishment forces someone to pay a debt they refused to pay on their own.

However, a 401K Loan that is being paid through payroll deduction is not in any stage of the collection procedure. Instead, the debtor went to their employer, asked to borrow a certain amount of money against their 401K. After borrowing the money the debtor agreed to have the monthly payments made through payroll deduction. Therefore, payroll deduction is not a wage garnishment.

One big difference between the two is that a payroll deduction is a voluntary payment made by the employee and a wage garnishment is the result of a lawsuit filed by a company the debtor owed money to. The debtor did NOT make a voluntary request to deduct money from their paycheck for a wage garnishment. Instead, the collector must force the debtor to pay the debt through a legal process known as a wage garnishment.

Secondly, wage garnishments are stopped the moment a bankruptcy petition is filed because the Bankruptcy Stay goes into effect. Do a search online for the term [wage garnishment] and you will find a paragraph that is part of the legal paperwork. This paragraph states that the filing of a bankruptcy petition automatically stops a wage garnishment. Naturally, the debtor does not want to stop the repayment of a 401K Loan, which is another difference between a payroll deduction and a wage garnishment.

What is the Proper Way to List the 401K Debt on the Bankruptcy Petition?

Method 1: Since a 401K is an asset, most bankruptcy courts I have worked with prefer to have the 401K listed on Schedule B with a lien attached to it. The lienholder would be the employer.

Method 2: Other bankruptcy courts require the 401K loan deduction to be listed on Schedule I since it is being paid through payroll deduction. The 401K is still listed on Schedule B as an asset but no lien is attached to it since this information appears on Schedule I.

Because both methods 1 and 2 are allowable, if this is your first time working for an attorney, you may want to use Method 2. Then, make a note on the Attorney Cover Sheet and let the attorney know that you did not list the employer as a lien holder on Schedule B. Instead, it is shown on Schedule I because the payment is made through payroll deduction. If the attorney wants you to add the employer as a lien holder on Schedule B, follow their decision.

-The 713 Training Team
www.713Training.com

Disclaimer: We at 713Training.com are not attorneys and any information provided by 713 Training should not be considered legal advice.  The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.

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The Means Test and the Older Vehicle Deduction

Posted on March 24, 2012 by Scott_Simons

Whether you are working on a Chapter 13 or Chapter 7, there is a distinct benefit to claiming the older vehicle expense on the means test.  Depending on your jurisdiction, if a debtor has a vehicle that is either more than 6 years old or has more than 75,000 miles on it, a deduction of $200 per vehicle may be claimed on the means test.  Being able to apply the deduction can bring a Chapter 13 payment down considerably or help other clients qualify for Chapter 7.

Not every jurisdiction allows the deduction and each jurisdiction has differing expectations about how to make the claim on the means test.  The reference point for this expense is found in the Internal Revenue Manual, Financial Analysis Handbook in Part 5, Chapter 8, § 5.8.5.5.2(3).

Vehicles present two expenses that can be claimed, ownership and operating.  The operating expense is claimed on line 27a and the ownership expense is claimed on line 28 (first vehicle) and line 29 (second vehicle).  The ownership expense takes into consideration the monthly lease or installment payments made by a debtor on a financed vehicle.

Until early 2011, about half of the jurisdictions across the country allowed debtors to claim this deduction even if the vehicle was not financed or leased.  In January 2011 the US Supreme Court ruled, however, that this expense can only be claimed if the vehicle is indeed financed or leased.  Ransom v. FIA Card Services, 131 S.Ct. 716 (2011).  After this decision, debtor’s access to the older vehicle expense became very important.

PRACTICE TIP:  For those debtors who own their vehicle outright, the older vehicle expense can usually be claimed on line 27a.  The $200 would be added to the operating expense already appearing on that line.  You will want to research your jurisdiction to be certain whether the claim is available in your jurisdiction and how to present it in the means test.  For example, in Utah, the claim is available, but it must be made on Line 60 as a special expense with a description of the vehicle appearing on that line.  In Montana, for example, the expense is claimed on line 27a.

For those of you who enjoy compelling reading, here is some of the current case law addressing the older vehicle expense including the case we argued in Utah establishing access to the expense.

In re Carlin, 348 B.R. 795 (Bankr. D. Or. 2006),  In re Byrn, Bankr. D. Montana, 08-60513-13,  In re McGuire, 342 BR 608 – Bankr. Court, WD Missouri (2006) (acknowledged expense was available but not used by debtor), In re Wilson, 383 BR 729 – Bankr. Appellate Panel, 8th Circuit (2008) (recognized US Trustee had supported expense in Amicus Brief, See Footnote 4.). In re May, 390 BR 338 – Bankr. Court, SD Ohio (2008) (recognized the US Trustee had supported expense for the case at bar.  See Footnote 13.), In re Wieland, 382 BR at 798-99, In re Slusher, 359 BR 290, 310 Bankr. D. Nev. (2007), Fokkena v. Hartwick, 373 BR 645 – Dist. Court, Minnesota (2007), In re Hargis, 10-36861 (Utah).

For help determining whether the expense is available in your jurisdiction and how to enter it in the means test, feel free to contact us and we’ll get you on the right track.

Sincerely,

The 713 Training Team
www.713Training.com

Disclaimer: We at 713Training.com are not attorneys and any information provided by 713 Training should not be considered legal advice.  The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.

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