Tips for Inputting Cell Phones on Schedule B

by Victoria Ring, 713Training.Com
written July 30, 2007

If a debtor has a cell phone, it is normally not listed under “Household Goods and Furnishings” on Schedule B. Unless there is no lien against it or the cell phone has a market value of $199 or less, the cell phone itself is normally not listed at all. However, there will probably be a cell phone contract that goes with the cell phone.

Therefore, when you encounter a debtor who has a cell phone (which is almost everyone); you should find out the following information:

1. What is the market value of the cell phone? If over $200 it should be listed as an asset either as a separate item or under “Household Goods and Furnishings” on Schedule B. There is one exception to this rule though. If the cell phone is used for business it would NOT go under “Household Goods and Furnishings.” Instead, it would be listed as a separate item on Schedule B and designated as “used for business purposes” in the description area.

Additionally, if the debtor has a cell phone that he or she uses for business, there will be some “business income” to report on Schedule I.

2. Does the debtor owe a debt on the cell phone? Not the cell phone service, but the actual cell phone itself? If so, you will add a lienholder to this asset on Schedule B.

3. Does the debtor have a cell phone contract on this phone? Normally the answer will be “yes” unless the debtor is using a prepaid phone card. (Note: People who have really bad credit will normally have a prepaid phone card.)

Also, if there is a cell phone contract, you will need to get all the information for Schedule G. And if the debtor’s wanted to continue paying the cell phone contract, the monthly payment needs to be recorded on Schedule I. (Note: The monthly payment is the contract amount – not charges for additional minutes or other fringe benefits such as text messaging and GPS navigation service.)

4. If the debtors no longer have cell phone service, you can bet that 99% of the time, they will have a debt for an unpaid cell phone bill. Watch for this on the debt sheets that the debtors fill out. If they don’t list the debt, make sure you get all the information anyway.

As a virtual bankruptcy assistant, it is your job to go “above and beyond” the call of duty for the attorneys as well as the debtors who file bankruptcy and keep you in business. In the legal world, it is easy to get “full of pride” when people you help look up to you and appreciate your quality of work. But it is very important for you to remember to be humble, caring, and sensitive to the needs of others and willing to do whatever it takes to get the job done.

If all virtual bankruptcy assistants followed this guideline, our industry would grow much more rapidly. Why? Because if an attorney tries out a virtual bankruptcy assistant who produces poor work or costs them a great deal of extra time, they will judge the entire industry on this one experience. So EVERY ONE of you is extremely important and valuable. Please work together and you will reap the benefits of a more stable income stream as the industry grows.

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Disclosure: The information contained in this article is solely intended to increase the skills of paralegals and other legal staff who are employed virtually or non-virtually by bankruptcy attorneys. This information is not to be used by non-attorneys to prepare bankruptcy petitions for the general public. The information is solely intended to train legal professionals working under the direction of licensed bankruptcy attorneys.

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AUTHOR BIO:

Victoria Ring is a Certified Paralegal and Bankruptcy Specialist and was the first paralegal to develop the Virtual Bankruptcy Assistant field in 1999. She has also developed an entire line of training products and holds several seminars per year in drafting bankruptcy petitions. Her training materials have been approved by NALS, NFPA and the Supreme Court of Ohio for CLE credits. Additionally, Victoria Ring provides speaking and in-house training services for bankruptcy law firms. Visit her website at http://www.713training.com