Having helped numerous people in training to become a VBA, we have had the opportunity to help them form the best practices in petition work. One mistake that many newly trained VBAs make when they are given a petition to prepare is to immediately start entering the information into their bankruptcy software. Ask yourself this question: If you were going to paint a room, would you walk in with a can of paint and just start painting? Definitely not. You would begin by first preparing the room, so you are able to do a good job and avoid mistakes. This is a best practice you should adapt for anything you do in life. Whether you are cooking, running errands, paying bills or working on a new bankruptcy petition, you need to do preparation work before you begin the actual work.
Using the information below you will hopefully enhance your skills in preparation for when you begin your bankruptcy petitions.
Check whether the debtor resides in a community property state.
Item 16 on the Statement of Affairs provides you with a list of all the community property states. If a debtor is married and is filing a petition without their spouse, there could be a problem. In a community property state, everything the debtor owns belongs to their spouse as well. Additionally, any debts the debtor has, are also owed by their spouse. Therefore, if a debtor is filing a bankruptcy petition without their spouse, they need to be made aware that collectors will most likely attempt to collect from the non-filing spouse when the bankruptcy petition is filed.
So before you start working on a bankruptcy petition where the debtor resides in a community property state, make sure that both the husband and wife are filing together. If not, the attorney needs to prepare an Affidavit that is signed by both the husband and wife stating they understand creditors may collect from the non-filing spouse. This way, the attorney can be protected by providing verification they warned the debtor of this potential problem occurring and fulfill their due diligence.
Check if the debtor has filed bankruptcy before.
Before you start working on a bankruptcy petition, do a check in PACER. This should be one of your very first tasks in preparing to do a petition. As a VBA if you miss this one detail and the attorney attempts to file the case, it will be rejected, wasting your time, the attorney’s time, and the client’s time and money. Doing this check is a good way to ensure that you start a case off right and maintain a good relationship with your attorney. Be sure to also check the Client Intake Forms and tax returns to see if the debtor has lived at any previous addresses. This will tell you whether you need to check in different jurisdictions other than where the debtor currently resides for previous bankruptcy filings. To further ensure the facts you have gathered are correct, do a background check for previous addresses. You may try this service: http://www.ussearch.com/
Check if the debtor is late on mortgage payments.
If debtors are greatly behind in their mortgage payment (6 months or more) you may have a problem if the debtors cannot qualify for a Chapter 13. If debtors are behind in their mortgage payment and file a Chapter 7, they are normally required to catch up all the back payments before the 341 Meeting. However, in some cases, the attorney will provide foreclosure mediation services to the debtor and either reduce, strip or negotiate the mortgage to the benefit of the debtor. If these negotiations occur, the attorney will provide you with the figures you need to enter on the bankruptcy petition before it is filed.
Or, if you have received advanced training in foreclosure mediation, the attorney may hire you to negotiate with the mortgage company on behalf of the debtor. (See the references below for training materials in foreclosure mediation.)
Check if the real property is due for a Sherriff’s sale.
If the client or attorney does not inform you of a Sheriff’s sale that is scheduled to occur, you can normally find the information when you do an online lawsuit check. You may also check the Real Estate page of the Client Intake Forms to see how many months the debtors are behind in mortgage payments. If there is a pending Sheriff’s sale and the debtors want to keep the house, you should clear your schedule and do everything to get the petition filed in order to protect the debtor’s home. It is moments like this that will show both the attorney and yourself how great your value is as a trained and professional Virtual Bankruptcy Assistant.
Summary
Being professional as a VBA starts in the preparation work you do before you start any petition. Remember that the work you do is to help people who are in need of your best efforts to make their bankruptcy a less difficult and stressful experience than it needs to be.
References
The Complete Foreclosure Mediation Kit
http://www.713training.com/shop/cart.php?m=product_detail&p=93
Introduction to Chapter 13 Concepts
http://www.713training.com/shop/cart.php?m=product_detail&p=101
Join the NAVBA and Save 10 Percent on All Products
http://navba.org/JoinNAVBA
Sincerely,
-The 713 Training Team
Disclaimer: We at 713Training.com 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.
