Tips for Non-Attorneys who are Drafting Schedule C Using Best Case Software

As most virtual assistants know, it is unauthorized practice of law for non-attorneys to prepare Schedule C. This is because Schedule C provides the law that substantiates the individual exemption claimed in the bankruptcy petition.

However, as a paralegal, virtual or non-virtual bankruptcy assistant, your job is to provide the attorney with a near-perfect bankruptcy petition for review. How can you complete Schedule C if it is unauthorized practice of law?

Fortunately, we have software programs that do the job for us. Below are step-by-step instructions when using Best Case software (http://www.bestcase.com) to complete Schedule C:

1. Before your software can automatically select exemptions for Schedule C, you must first go into every piece of real property on Schedule A and Schedule B and make sure you have selected the correct PROPERTY TYPE under the “Description” tab. If you do not select the correct PROPERTY TYPE, the automatic feature of your software will not work.

2. Next, look at the bottom of the “Description” screen and you will see an amount under “Market Value.” Remember this number.

3. Also examine the “Exemption Analysis” to the left of the “Description” screen. If there is any number (other than $0.00) appearing on the “Unexempt” line of the Exemption Analysis, you need to select an exemption.

4. Click the “Exemptions” tab at the top of the “Description” screen.

5. Click on “INSERT”

6. Best Case software (and most of the other bankruptcy software programs) will automatically select the exemption for you. You simply hit the ENTER key on your keyboard to select it.

7. Be sure to pay very close attention to the exemption the software automatically selected for you. If it does not appear to be the correct exemption (Example: The personal property to be exempted is for “clothing”, but the software automatically picks “residential building materials”), MAKE A NOTE FOR THE ATTORNEY so the attorney can check Schedule C and choose the proper exemption. Software is never perfect.

8. After Best Case software has automatically selected the exemption, look at the “Property Total” box that appears just below the selected exemption. On the last line: “Unexempt”, double check to make sure this amount is $0.00. If not:

a. First check to make sure an exemption amount has been claimed (look at the line before “Unexempt” and you can see the amount under “Net Equity Claimed.”

b. If there is no amount in this area, type the amount in the “Exemption Amount” box.

c. If there is an amount on the “Net Equity Claimed” line, MAKE A NOTE FOR YOUR ATTORNEY about the unexempt equity.

Please take the time to practice these steps over and over again until you understand the process fully. We have a number of people who take the AVBA Exam that either do not complete Schedule C or leave many of the exemptions off.

Not properly drafting Schedule C can cost the debtors $1,000s of dollars they cannot afford. Your job is to work with the attorney to protect the debtor as fairly as possible. Not completing Schedule C properly means that you are not doing your job and some attorneys will fire you over this.

I wish you the best of success in improving your skills to the expert level.

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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

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