The Hair Piece that Could

When drafting bankruptcy petitions, it is very important to document and report ALL allowable monthly expenses that the debtor has.

With some clients, this can mean the difference between filing a Chapter 7 bankruptcy (potentially discharging all debts) or a Chapter 13 bankruptcy (repaying some or all of debt over a 3-5 year period); and even in a Chapter 13, it could make a significant difference in the debtor’s monthly payment, allowing them a more realistic monthly payment, and giving them a much greater likelihood of successfully complete their Chapter 13 plan, (as it has been reported that roughly 80% of Chapter 13 filers do NOT complete their plan, allowing creditors to resume collection efforts).

This requires analytical thinking, and is the skill that separates the professionals in our industry from those that just “data entry” a bankruptcy petition.  Those of us that use our mind to think outside the box are the ones that become very successful VBA’s.

One example of this is a bankruptcy petition I drafted a while back for a client that had a $150 monthly payment for the hair piece he got from the hair club that he was a member of, due to balding.  This monthly payment was listed on Schedule J of the client’s bankruptcy petition, and was allowed by the bankruptcy court.

In another bankruptcy petition, we reported $250 per month in cigarette consumption.  Again, this was not disputed by the court.  With this debtor, we also reported a $450 per month contribution to help the debtor’s mother pay her mortgage.  The debtor had to provide a history of this to the trustee, but again, it was allowed.

Get creative, use your mind to SOLVE your client’s problem…help them get a fresh start, with their best foot forward.

We’re not trying to take advantage of the system, rather, we are trying to utilize everything available within the system to help the person(s) filing bankruptcy, and help our attorneys representing them to be their hero, while simultaneously saving the attorney time and money…THAT my friends, is the job of a VBA.

Wishing you health and prosperity.

Sincerely,

-Your Friends at 713 Training

 

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DISCLAIMER: We at 713 Training 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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