QUESTION:
My attorney sent me a credit report to get debt information from. Many debts on the credit report show a $0.00 balance. Does this mean the debtors do not owe the debt?
ANSWER:
When a credit report shows a debt owed to a company with a $0.00 balance it could mean the debt is paid in full. However, it normally means that the company wrote off the debt or sold it to a collection agency and the debt still exists. For example, Company A transferred the file out of their computer system into the computer system of Company B. On the credit report, it may show Company A with a $0.00 balance and Company B with a $2,000 balance. However, there is only one debt but two companies are listed on the credit report.
Another common occurrence on credit reports is that the same debt is listed two, or even three, different times with various balances but all pertain to the same debt. For example, Company A shows a balance owed for a repossessed vehicle in the amount of $22,000. Company B was the collector on this account and shows a balance owed of $21,900 for this same debt. Then, to complicate matters even more, Company C was the bank who granted the original loan. They are also listed on the credit report for the same debt but this one is in the amount of $22,250. It would be impossible for any attorney, paralegal, bankruptcy assistant or VBA to know that these three debts were for only one debt. That is why it is not advisable for anyone (except the debtor) to dissect their own credit report for fair and accurate debt information.
Suggestion: As a bankruptcy professional you should learn how to read the three different credit reports issued by Experian, TransUnion and Equifax. This way, you can train the debtor how to read them and dissect the information for their own reporting on the Client Intake Forms. One good way to learn how to read credit reports is to request your own. You will recognize your own debts and begin to understand how to instruct the debtor(s) to do the same.
QUESTION:
Can a debtor pay a bankruptcy attorney with a credit card?
ANSWER:
Absolutely not. Unless the credit card is a DEBIT card, using an unsecure credit card to pay bankruptcy attorney fees means that the debt will be included on Schedule F as an unsecure non-priority debt. In a Chapter 7 the debt could be dismissed and not paid. In this happened and the attorney had received the money from the credit card company for the fees, the attorney would be accepting money with the knowledge of a fraudulent transfer. This situation could cause catastrophic issues. Additionally, the debtor(s) would be making a new debt prior to filing bankruptcy. As you know, any new debts made on the day of (and ninety days prior) to filing bankruptcy must be indicated as well as explained within the bankruptcy petition.
QUESTION:
I am preparing a bankruptcy petition for a debtor who has not filed his 2008 income taxes. He was granted an extension from the government until October 2009. Should he wait to file bankruptcy until after he files his taxes?
ANSWER:
You or I cannot make the determination when a debtor can file bankruptcy. Only an attorney can make this decision. However, in cases I have worked on, if a debtor was granted an extension by the government to file his taxes in October, he should have no problem filing bankruptcy before then. If the debtor believes he will owe taxes (which is normally the case for people who file extensions for more time), these estimated taxes needs to be listed on Schedule E of the bankruptcy petition. In the Consideration Section you may want to type in something like: 2008 Income Taxes, Extension Granted for filing until October 2009.
QUESTION:
Hello. My name is Tim Patenaude and I am very interested in becoming a VBA. My wife and I have been searching for an at-home position for quite awhile and we seem to keep running into more and more home business scams than you can shake a stick at. Your web site is very informative and seems to be legit. After reviewing your site and searching for scams within your training, I am happy to report, you are clean. So with that in mind, I do have a few questions regarding the training and what the future holds for all VBAs. You can either contact me by phone or if you would like, just e-mail me. One of my questions is do I need to buy two training manuals for my wife and I or can we study together off the same training products and pay separate for the test? Hope to hear from you soon.
ANSWER:
Thank you very much for researching our company and finding out that we have a clean record. Although we never claim to please everyone 100% of the time, we do whatever we can to run a company focused on customer satisfaction rather than profits. This is why we have been confused with a training school on several occasions.
To answer your question regarding the training materials; Yes, you and your wife may share the same materials for training together since you reside in the same household. Thank you for asking. This shows me that you are an honest person which is a necessary trait for success in the legal field.
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