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When you are preparing the bankruptcy petition, DO NOT select exemptions for assets on Schedule A and B until AFTER the bankruptcy petition is complete. This is due to the fact that as you work through the data, gathering information for the bankruptcy petition and inputting it on the correct Forms and Schedules, you will normally uncover more assets that need to be listed on Schedule B.

A typical example is a 401K. You normally never find out about the 401K until you get to Schedule I and start reviewing the pay check stubs. At this point, you need to go back to Schedule B and add in the 401K as an asset. This addition will cause you to make adjustments to the exemptions; therefore, if you wait until the end (the Finalization Stage as I call it) you can select all your exemptions at one time because you will have all the assets entered.

Note: By selecting exemptions I am not suggesting that a non-attorney choose exemption allowances that are not automatically selected by the bankruptcy software. It is important to keep in mind that a non-attorney is not provided the authority to make this decision. Also, this is why most bankruptcy software programs have features that allow exemptions to be automatically selected as long as the right category of asset TYPE is selected on Schedule B.

However, in some rare situations, the software may select the wrong exemption allowance for an asset. No software is perfect. If you are a non-attorney and you happen to believe that a different exemption may need to be selected than the one provided by the software, make a note on the Attorney Cover Sheet so that the attorney can check this exemption selection and make sure the right one appears on Schedule C.

The Bankruptcy Petition Preparation Process

The following is the typical process for the initial procedures in processing the typical Chapter 7 or Chapter 13 bankruptcy petition:

1. Enter in initial data provided by the debtors on the Client Intake Forms;

2. Compile a list of additional questions and issues (during the Initial Preparation Stage) that need addressed before the bankruptcy petition can be completed;

3. The client intake questionnaire session is completed and answers obtained;

4. The answers obtained from the client are updated within the bankruptcy petition;

5. At this Finalization Stage, Schedule A and B assets are assigned exemptions so that Schedule C can be prepared;

6. Any additional issues are detailed (regarding assets, unexempt equity or any other issue within the bankruptcy petition) and provided on the Attorney Cover Sheet;

7. The draft of the bankruptcy petition (PDF format) and the Attorney Cover Sheet are provided to the attorney for the initial review.

Look for more tips like these to come your way soon.

Disclaimer:

The information in this article should not be considered legal advice. It is written by Victoria Ring, a certified paralegal and bankruptcy training instructor. All information is subject to the guidance of licensed bankruptcy attorneys in your U.S. state.

Victoria Ring
http://www.713training.com
http://www.713attorney.com
http://www.713bankruptcy.com
http://www.navba.org
http://www.servantofjesuschrist.com

a training lesson for professionals who prepare bankruptcy petitions

In my opinion, there is a deal breaker in almost every bankruptcy petition that I am involved with. What do I mean by a deal breaker? It is the one debt or asset that causes one unique problem within a bankruptcy petition to create a catastrophe.

Let me give you an example: Last week an attorney sent us a bankruptcy petition to prepare for his law firm. After entering all the information and during the Finalization Stage of drafting the petition the virtual bankruptcy assistant discovered unexempt business assets in the amount of almost $95,000. The debtor owned his own liquor store. A recent inventory had revealed a $100,000 value. The state of New York had a maximum exemption allowance for business inventory of only $5,000. This left the debtor with $95,000 of UNEXEMPT equity.

Why is This Problem a Deal Breaker?

Because, when this bankruptcy petition is filed, the unexempt equity will become a debatable issue for all parties involved. This will cost the attorney, the court and the debtor extra time and possibly extra money. Why? Because the debtor is asking the court to forgive him of $328,000 of unsecure credit card debt plus allow him to keep $95,000 of unexempt equity as a bonus gift. This line of thinking is not fair for both sides and therefore, the creditor would normally file an Objection to the Discharge of this Chapter 7 petition. And if the debtor were filing a Chapter 13, the creditor would normally file an Objection to the Confirmation of the Chapter 13 Plan.

What is the Solution to the Problem?

The first suggestion I have in solving this situation is the easiest. First, find out if the business inventory is really valued at $100,000. In most cases, you will find that debtors always provide a high estimate of their assets. This is because debtors have a habit of not fully understanding the meaning of the term: market value. Market value is the amount the court could reasonably resell the items for in order to get money to pay the creditors. There is no benefit to the debtor if they overestimate a $100,000 inventory that can only be resold for a fair market value of $35,000.

Thus, using the $35,000 market value figure (and applying the $5,000 exemption allowance) the unexempt equity is lowered from $95,000 to only $30,000. That will makes a huge difference in how this bankruptcy case will play out. This is why I call these types of situations: Deal Breakers.

What if the Market Value Cannot be Lowered?

What will happen if you find out that the $100,000 figure is correct and the debtor really has $95,000 in unexempt equity? Basically, there is not much that can be done.

Now the subject becomes one that the attorney will need to handle. How the attorney handles this type of situation will be crucial in moving forward with this case. But face it; it is not easy to tell a debtor that he or she may lose their entire business inventory when they file bankruptcy. In fact, this type of news normally will cause a panic with the debtor. Therefore, this type of issue must be approached in a positive manner by the attorney or catastrophic events could arise.

Bad Example of Handling This Situation:

Attorney is told that there is $100,000 of unexempt equity in the debtors business inventory. Attorney calls debtor and tells him that he is could lose his business but he would not know until the court hearing. The result? The debtor panics. Who can blame them?

Good Example of Handing This Situation:

Attorney tells debtor that he has a total of $328,000 of unsecured credit card debt that will be erased if the bankruptcy petition is granted a favorable discharge. (Start with your strongest positive fact.) However, the issue the attorney is having trouble protecting the debtor from is the estimated $100,000 of unexempt equity in his business inventory. The attorney may tell the debtor that in the state of New York he is only permitted to keep a certain amount when he is asking the court to dismiss him from all his debt. (This shows that the attorney knows the bankruptcy law and is working in the debtors best interest. This helps to develop trust between the debtor and the attorney.)

The attorney may then ask the debtor to provide him with a list of items in the inventory and the approximate market value so he can obtain a clear picture of the asset in question. The attorney may also explain to the debtor what is meant by the term market value. The attorney would then allow the debtor time to review his business inventory figures and provide him with a more accurate figure.

However, if the debtor is struggling with providing the correct figures, and since this is such a crucial issue within this particular bankruptcy petition, the attorney may request that the debtor hire a licensed appraiser to provide an accurate inventory as well as better market values. Besides, with business inventory assets this large, the bankruptcy trustee may request one from the debtor anyway. By the attorney requesting one now, it may save the attorney and debtor a great deal of time in the future.

Will the Court Really Take the $100,000 in Unexempt Business Assets?

I do not know. You do not know. The attorney does not know. The only time this question will be answered is when the trustee and the creditors have had an opportunity to review the filed bankruptcy petition. When this decision is made, the trustee will let the attorney know.

Perhaps, since the inventory is necessary for the debtor to keep in order to continue the normal operation of his business, the trustee may decide to fully protect and exempt the business inventory. Or, the trustee may decide to have the debtor pay all or a portion of the unexempt equity before a favorable discharge is granted. The only way to know for sure is to watch PACER and read the documents that are filed after the bankruptcy petition is filed.

Look for more tips like these to come your way soon.

Disclaimer:

The information in this article should not be considered legal advice. It is written by Victoria Ring, a certified paralegal and bankruptcy training instructor. All information is subject to the guidance of licensed bankruptcy attorneys in your U.S. state.

Victoria Ring
http://www.713training.com
http://www.713attorney.com
http://www.713bankruptcy.com
http://www.navba.org
http://www.servantofjesuschrist.com

Today I was doing a bankruptcy petition review for a virtual bankruptcy assistant prior to giving the petition to her attorney. One mistake she made was in listing the 401K Loan as a Wage Garnishment. Since many people make this same mistake, I hope this article will help you to improve your skills.

First of all, never confuse any deduction coming out of a paycheck with a wage garnishment. A wage garnishment is a legal procedure that is conducted by a collector attempting to collect a debt. The collector has filed a lawsuit, obtained a judgment from a judge and filed the legal paperwork with the court to get permission for a wage garnishment to take effect. In other words, a wage garnishment forces someone to pay a debt they refused to pay on their own.

However, a 401K Loan that is being paid through payroll deduction is not in any stage of the collection procedure. Instead, the debtor went to their employer, asked to borrow a certain amount of money against their 401K. After borrowing the money the debtor agreed to have the monthly payments made through payroll deduction. Therefore, payroll deduction is not a wage garnishment.

One big difference between the two is that a payroll deduction is a voluntary payment made by the employee and a wage garnishment is the result of a lawsuit filed by a company the debtor owed money to. The debtor did NOT make a voluntary request to deduct money from their paycheck for a wage garnishment. Instead, the collector must force the debtor to pay the debt through a legal process known as a wage garnishment.

Secondly, wage garnishments are stopped the moment a bankruptcy petition is filed because the Bankruptcy Stay goes into effect. Do a search online for the term [wage garnishment] and you will find a paragraph that is part of the legal paperwork. This paragraph states that the filing of a bankruptcy petition automatically stops a wage garnishment. Naturally, the debtor does not want to stop the repayment of a 401K Loan, which is another difference between a payroll deduction and a wage garnishment.

What is the Proper Way to List the 401K Debt on the Bankruptcy Petition?

Method 1: Since a 401K is an asset, most bankruptcy courts I have worked with prefer to have the 401K listed on Schedule B with a lien attached to it. The leinholder would be the employer.

Method 2: Other bankruptcy courts require the 401K loan deduction to be listed on Schedule I since it is being paid through payroll deduction. The 401K is still listed on Schedule B as an asset but no lien is attached to it since this information appears on Schedule I.

Because both methods 1 and 2 are allowable, if this is your first time working for an attorney, you may want to use Method 2. Then, make a note on the Attorney Cover Sheet and let the attorney know that you did not list the employer as a lienholder on Schedule B. Instead, it is shown on Schedule I because the payment is made through payroll deduction. If the attorney wants you to add the employer as a lienholder on Schedule B, follow their decision.

Look for more tips like these to come your way soon.

Disclaimer:

The information in this article should not be considered legal advice. It is written by Victoria Ring, a certified paralegal and bankruptcy training instructor. All information is subject to the guidance of licensed bankruptcy attorneys in your U.S. state.

Victoria Ring
http://www.713training.com
http://www.713attorney.com
http://www.713bankruptcy.com
http://www.navba.org
http://www.servantofjesuschrist.com

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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http://713training.com/seminar/
ONLY 8 SEATS LEFT

The August 14, 2009 Chapter 13 Training Seminar is the third one we have held for attorneys and virtual bankruptcy assistants working in debtor bankruptcy law. The location for this one, scheduled to be held in Los Angeles (El Segundo) was found for us by a VBA, Phyllis Mortimer, who will be attending the seminar as our special guest. Also attending will be Matthew Williamson, an attorney in Monterey CA who specializes in bankruptcy.

The difference this seminar provides over the other seminars we have held is that this is the first one to consist of more attorneys than virtual bankruptcy assistants. When I was compiling the list it dawned on me: This would be an excellent way for virtual bankruptcy assistants to find attorneys to work for; attend the seminar and spend the whole day with bankruptcy attorneys who will learn what professionals go through when they prepare Chapter 13 bankruptcy petitions. This way, attorneys and virtual bankruptcy assistants can form a closer understanding and work better together.

Also, for bankruptcy attorneys, you can network with other bankruptcy attorneys and grow your law firm together. If you keep up to date with the bankruptcy statistics, you already know there is enough work out there for millions of bankruptcy attorneys. There is no competition in debtor bankruptcy at the moment, so this fact alone should promote more referrals and networking among attorneys.

SEMINAR OUTLINE

When you attend the Chapter 13 Training Seminar in Los Angeles on August 14, 2009 you will also be able to meet with and talk to Victoria Ring and Cheri Graham. For seminars you have attended in the past, how many times did you have access to the speakers? At this seminar you will have access throughout the entire day of the seminar. That is why we limit the number of attendees to a small amount so that everyone will benefit from the training.

Additionally, you will receive a set of workbook materials that you can take back to the office with you. We understand that you will not remember everything you learn at the seminar. By taking the materials back and practicing at your own pace, you will be better able to absorb the information and utilize your new training skills immediately.

Check out what the seminar day holds in store for you:

8:00 to 9:00
Handout of training materials and name badges
Opportunity to network and choose partners for study sessions
Distribution of name badges
Distribution of workbooks
Installation of bankruptcy software (provided free to attendees)

9:00 to 9:30
Opening with Prayer
Introduction of Victoria Ring, Cheri Graham, Phyllis Mortimer and Attorney Matthew Williamson
Self Introduction of all attendees

9:30 to 11:30
Instruction: Overview of Steps for Completing a Chapter 13 Bankruptcy Petition
Class exercise: Classification of Debts and Questions
Instruction: Balancing Out Schedules I and J and Determining a Workable Chapter 13 Plan Payment

11:30 to 12:30
Lunch

12:30 to 2:00
Class Exercise No. 1 – Chapter 13 Plan
In Class Review of Class Exercise No. 1

2:00 to 2:15
Break

2:15 to 3:30
Class Exercise No. 2 – Convert a Chapter 7 to a Chapter 13 and develop a Chapter 13 Plan
In Class Review of Class Exercise No. 2

3:30 to 4:30
Final Exam

4:30 to 5:00
Turn in Final Exam
Distribution of Certificate of Attendance to all attendees

CAN YOU ATTEND?

I sincerely hope you are one of the eight people who are able to reserve their seat at this exclusive Chapter 13 Training Seminar. There is no other training seminar that provides the detailed information you will receive at this seminar. We guarantee your satisfaction.

To sign up, visit:
http://713training.com/seminar/

QUESTION:

I am a mortgage broker and often have clients who need to file bankruptcy. Could I provide that service to them or does it have to be done through an attorney? I have an extensive background in all kinds of financial services. Thank you for your time.

Suheil

ANSWER:

No, the law was changed in 2005 to prevent non-attorney preparers from having the ability and power to harm consumers by helping them file bankruptcy without an attorney. Consumers are best protected by hiring an attorney. Some of the best attorneys in the United States can be found at http://www.nacba.org

You may be able to make money by working with two or three bankruptcy attorneys and referring cases to them. Simply provide a list of several bankruptcy attorneys to your clients as well as providing the client information to the attorneys for their follow-up. You would sell this list weekly to attorneys for their marketing purposes. Keep in mind though that you cannot refer clients to ONE attorney. You must refer them to TWO OR MORE so they have the ability to make their own choice. However, the more attorneys you have on your list the more client contact lists you can provide to them on a weekly basis.

Another option would be to learn the skill of preparing Chapter 7 and Chapter 13 petitions and provide this as a service to attorneys nationwide. These are the skills that I teach through http://www.713training.com

Victoria Ring

QUESTION:

I was going through Schedule Bs list of categories and #17 raised a question. It reads: Alimony, Maintenance, Support and Property settlement.

If my client receives (monthly basis) Alimony from her ex-spouse does it have to go into Schedule B, category #17, along with listing it as income in Schedule I, under Alimony payments?

Armida

ANSWER:

No. Only child support that is previously owed to the debtor is listed on Schedule B. If the debtor is not owed back child support that is or is not uncollectable, the income is NOT listed on Schedule B. Instead it is simply listed on Schedule I as normal monthly income. Also be sure to include the average income from child support that was received over the 6 month period on the Means Test also.

Victoria Ring

QUESTION:

Do you know of a web site where I could find the value of a manufactured home? I have searched high and low and most want you to pay a fee.

Armida

ANSWER:

You can try several things:

** Do a Google search for the make and model of the mobile home: i.e., 1987 Breezewood which may lead you to an advertisement where someone is selling this type of mobile home; or do a search on EBay or other auction website. However, unless you can locate an exact match this method will probably be questioned by the trustee.

** Try a search on http://www.zillow.com

** Try http://www.nadaguides.com. Depending on the age of the manufactured home, the market value may still be available on NADA.

If all else fails, your attorney may order the debtors to obtain an appraisal so that an accurate market value can be obtained for the bankruptcy petition; however, that is an issue your attorney will need to address. Your job is to do your best to find a market value for the manufactured home and print out the web page you find it on for verification that the attorney takes to the 341 Meeting. But you need to also inform your attorney that you could not obtain an accurate market value online and he or she may wish to order an appraisal.

Victoria Ring

QUESTION:

In regard to emailing an attorney a draft of a bankruptcy petition, would I simply email the petition as I did to you last night, or is there a procedure that you have covered in your training materials and I am having difficulty locating same? I would greatly appreciate your input on the correct method to forward a petition along for review whether it is for you or for an attorney.

Gerry

ANSWER:

You email attorneys a PDF version of the bankruptcy petition for review. In Best Case, you open up the case, double click on the printer icon to the RIGHT and highlight all the documents, select PRINT and PRINT TO PDF. Finally, you send the PDF file as an attachment to the attorney.

However, if you have an attorney who prefers to tweak his or her own petitions after you have finished with them, you may want to take time to learn the bankruptcy software your attorney uses. Most bankruptcy software programs are similar. Some people prefer one over the other as far as their functionality, but the final result of the documents the software produces remains the same. A bankruptcy petition is a standard government form just like a 1040 Tax Form or other government form.

The only problem with this is that attorneys often tweak their petitions and forget to provide the bankruptcy assistant with an update to the case file. Or, the attorney sends a copy to the bankruptcy assistant and the bankruptcy assistant forgets to delete the old file and install the new one before filing the bankruptcy petition.

To prevent problems like this from occurring, the bankruptcy assistant will provide the attorney with a PDF version. If the attorney wants to make changes on the bankruptcy petition, he or she can mark the changes with a black* felt-tip pen on the actual petition page. The attorney will fax, scan or email the pages with changes on them back to the bankruptcy assistant and the changes can be made on the master bankruptcy petition. This method will ensure that only one master bankruptcy petition copy exists, which eliminates problem versions.

* Why a black felt-tip pen instead of any other color? Because when a scan is made from a mark made by a black felt-tip pen, it will scan properly. Other colors will fade during the scanning or copying process.

Victoria Ring

QUESTION:

I recently became a member of the NAVBA and I am in the process of completing the VBA Certification Exam. Could you please tell me if Victoria is still offering VBA Positions?

Tom

ANSWER:

Yes, we will continue accepting applicants for many years to come because bankruptcy is an ongoing process and we will always need good people to help us. However, it seems that only a few actually pass the exam because they do not study the materials before taking it. I hope you achieve higher scores so we can work together. But even if you do not receive a high score, you will still have the skills to work for attorneys in your area or even nationwide simply by studying the materials. Obtaining skills does not limit you to solely working for us alone.

To purchase training materials, visit:
http://www.713training.com/shop

QUESTION:

Thank you for the information regarding the software company. I wanted to write you today because I ran into the same problem but listed below is how I managed to work around the problem.

I had to deal with the same thing but in my case my attorney refused to give Best Case $1.00 on principal. He uses Best Case but manually has his people file the paperwork at the court house.

When I came on board I could not understand that they were doing it the old fashion way and I also could not believe that the Central District of California was allowing them to do so. I thought it was mandatory to ECF but I was wrong at least in my area.

To make a long story short; I had to find a way around Best Case in order for me to work with this attorney because he refuses to give them $1.00. So with his permission I learned or logged onto the courts website and learned how to ECF on their website. Here is what I was able to figure out; I create or enter the petition as usual using Best Case. Once the file is completed, I prepare it for ECF filing. Best Case puts my petition in the proper format to send to the courts including the matrix in a text form. I then go directly to the courts website and open a “new bankruptcy” and pull all the information they are asking from the petition. When I get to the area where you are asked to down load your petition, I go to my C drive and under Best Case I click on ECF filing; my petition is there for me to paste or load into the courts website. I always open and make sure that it is the correct petition before I send it and so far it has worked and my attorney is fine with me working this way. I have now submitted 3 petitions on his behalf this way and so far so good.

I also have developed a relationship with the help desk and call when I need to. They are sometimes helpful and some days they are not nice but I do the best I can with them.

Victoria, my way of thinking is [survival] because my income has dramatically dropped (I got laid off last Dec) and I have to find a way to make some money. Although my attorney is quite frugal and I don’t believe that I am getting paid right, I have learned so much from having access to this office and his paralegal. I see it as a give and take relationship. I hope for more work as soon I build my knowledge and confidence.

Thanks for being so a great influence in my work.

Armida

ANSWER:

I am very proud of you for finding ways to work around your problem. This take a creative mind, which it appears you have plenty of. Keep in touch. You have a great career ahead of you in bankruptcy.

Victoria Ring

QUESTION:

I am a Virtual Bankruptcy Assistant and have purchased several of your training books and materials. I would like to ask a question. Is there a way around purchasing plans from Best Case for every state you work in? I work for three different attorneys in three different states. In most cases I only prepared the petition, but now they are requesting that I amend plans and efile petitions, which I have no problem doing. But purchasing plans at $150.00 each (I think) is expensive and each plan will increase my yearly maintenance up to $75. That means, if I pay for the plans today, I will have to pay $450.00 today and $600.00 a year to maintain my account with Best Case. Please assist. I await your response before doing anything.

Annette M. Harris

ANSWER:

Annette, for you and many other people who emailed me the same question, I researched and put together an excellent reference tool for you. Simply go to the link below and download all the additional forms you need FREE OF CHARGE:

http://www.713attorney.com/links/forms.html

Victoria Ring

TESTIMONIAL

Last week I received my first case from Attorney Borgia. He is such a sweetheart! He said that he had 8 or 9 almost complete pay and he feels they should be ready by the end of the month.

A new lawyer in Fort Lauderdale sent me a chapter 13 last week and I just finished the plan today. I played your video last night until 2am. It finally has clicked.

Thank you once again for your knowledge and kindness. I also agree, attorneys don’t understand the redemption concept, its up and downs.

Mary Sosa

TESTIMONIAL

Thank you very much for the book! I am working my way through it now and am very grateful for it! The first attorney who contacted me after our mailout asked if I could do Chapter 13′s, too, so I think they may get a lot of 13′s here due to the higher incomes at places like Intel and Motorola. Some friends we know who are considering bankruptcy didn’t qualify for Chapter 7, so they have to file Chapter 13 if they decide to file.

Lynn Goodrich

TESTIMONIAL

I would like to thank Victoria for her diligence, wisdom and willingness to share this valuable information with those that have a desire to enhance their bankruptcy skills and knowledge. I cannot begin to tell you how it has blessed me tremendously. I have been a legal secretary/legal assistant and recent paralegal graduate for over 20 years and never have I run across such detailed and practical material.

Shirley Bobbitt

TESTIMONIAL

Dear Victoria,

Thank you for what is again a wonderful piece of advice. I have only been receiving your communications for a short time now, but rest assured that I find your wisdom to be of infinite value, and I think about it a lot as I am working on getting started in my bankruptcy practice with absolutely no capital. The first thing I read that you wrote was about emphasizing the value you can provide to your customers. Let us hope that your kind actions and help will inspire this lady and many others if not today, then tomorrow.

You know, I have been talking to some people I know about your story and your fantastic business…legal assistants I know and some attorneys. I think it is a wonderful way to go for both. I do realize that Bankruptcy law has long had some sort of distaste about it. When I recently underwent ECF training at the courthouse in Tampa, I picked up a court brochure which said that during the Middle Ages, debtors were put to death or imprisoned, and this practice continued as the New World was colonized. So, it seems that the stigma goes back a very long way. Maybe this subconscious stigma had something to do with why the woman stayed at bay. It is so hard to explain human behavior sometimes.

I understand some of her answers to your questions, such as regarding the worry of how to handle a lot of business if she is not prepared mentally or set up business wise to do so in an efficient manner. Maybe she is afraid that she is inept at electronic transactions and is finding her way to admit it and do something about it. Maybe she is afraid or does not want to work so many hours. I am sure that you had a much bigger impact on her than you think you did. Regardless if you did or did not, I want to tell you how much I admire you for taking that time and effort to provide your assistance and wisdom. You certainly assisted me on various levels, and I trust that you helped many others too.

I think your business story is wonderful, your advice is priceless, and that you are a wonderful, caring person. Whomever I can direct to you, I will. I also want to thank you for the Florida attorney contact that you gave. I do plan to contact her and introduce myself. Your offer of personally showing people to the gorgeous sites around your area in connection with the upcoming training session was truly a beautiful gesture. Finally, thank you for writing this message and sharing such important information with all of us. You are awesome, and I wish you the most wonderful success and happiness in your new home in Colorado Springs!

Warm regards,

Colleen ORourke, Esq.

REPLY FROM VICTORIA RING

Attorney ORourke –

It humbles me to read your email and I sincerely appreciate your vote of confidence in me. I will continue doing my best and hope you keep in touch.

Victoria Ring

713 FAMILY OF WEBSITES:
http://www.713training.com
http://www.713attorney.com
http://www.713bankruptcy.com
http://www.navba.org
http://www.servantofjesuschrist.com

At this point in time, all bankruptcy software programs were written by programmers who have never had any experience preparing bankruptcy petitions. Therefore, I think it would be good business practices that the software companies listen to the bankruptcy professionals who purchase and use their software in order to obtain ideas for software improvement; but they do not do this.

Instead, the bankruptcy software companies all decided to develop some form of credit or rapid import feature for their software. Their goal was to increase their profits. They never once considered the chaos they would cause by developing this type of added feature. This is because the majority of all bankruptcy software company programmers have never worked for a bankruptcy law firm, never interviewed a client, never input information from a credit report and never prepared a bankruptcy petition in their life. How could they know what havoc their features would cause within the legal field?

All of the credit and rapid import features in the bankruptcy software programs work basically the same way. The client logs onto the internet and fills out a type of intake form. This information then imports into the bankruptcy software program. Or, the attorney signs up to be able to pull credit reports. The credit report information is then imported into the bankruptcy software. Either way, data is supposed to be imported, thus saving people time from entering names, addresses and account number data.

On this surface this feature appears to save time, especially if you have never prepared a bankruptcy petition before. However, this feature adds on an additional 3 to 4 hours of time for the person preparing the bankruptcy petitions. One of the major problems is that when the information imports into the software, the debt does not know if it belongs on Schedule A, B, E, F or G. This requires the bankruptcy assistant to separate the debts and place them in the specific areas of the bankruptcy petition where they belong. But this is impossible to do with scanty information to go on that is provided by a credit report; many reports of which do not even contain addresses. As you can see, the credit or rapid import feature can be more time-consuming than simply typing the information into the software program.

Secondly, the credit and rapid import feature does a good job of importing everything from a credit report, but the bankruptcy petition does not need to include everything listed on a credit report. For example: If a debt has been paid in full and appears on the credit report with a $0.00 balance, the debt may no longer exist. Or, perhaps it still exists but the company wrote the debt off and turned it over to a collection agency. How could any software program know how to distinguish between the two without human intervention?

How Can This Dilemma Hurt Debtors?

I recently did a bankruptcy petition review for a law firm in Georgia. They were not aware of the Chapter 13 unsecure debt limits which are currently $336,900. Instead, they had used a credit report rapid import feature purchased from their bankruptcy software company.

When I opened up Schedule F, debts had been repeated in triplicate because they had been turned over to many different credit collection agencies. This caused the total amount of unsecure debts listed on Schedule F to total $997,647. This is almost three times the allowable limit in a Chapter 13. After working with the debtor in order to find out which debts were duplicates, the debts were reduced to $57,800; which is clearly under the Chapter 13 qualification limit.

If the bankruptcy petition had been filed without Schedule F being corrected, the bankruptcy court would have dismissed it because the total amount of unsecure debt did not qualify for a Chapter 13. It would then be left up to the attorney to discover the error, research the facts of the case, prepare an Answer to the Dismissal and possibly attend a court hearing on the matter. Would not it be simpler to not use the credit or rapid import system or spend the money purchasing it?

Suggestion for Proper Use of Credit Reports

My suggestion is to require clients to obtain a copy of all three of their credit reports during the intake process. If they have not requested a report within the past year, the credit reporting agencies will provide the reports without cost.

Since the client(s) are the people who made the debts, they will be able to recognize the debts and match them up properly. They are also the people who know the detailed information about the debt, such as if the credit card was used within the past 30 days. This information cannot be provided by a credit report when the credit report is always at least 90 days old at the time it is pulled; however, this information is mandatory to know for the bankruptcy petition or it can result in the filing of an Adversary Proceeding.

Therefore, we suggest that you have the client(s) use the credit report to fill out the Debt Sheets which are included inside the Client Intake Form package. All information required on the Debt Sheet Forms is needed for every debt and only the client(s) know the answers to these types of debt related questions.

Download your free set of Client Intake Forms:

English Version
http://www.713attorney.com/intakeforms/bankruptcy_intake_forms_english.pdf

Spanish Version
http://www.713attorney.com/intakeforms/bankruptcy_intake_forms_spanish.pdf

First of all, allow me to congratulate all the people who have been working hard to pass the VBA Exam and the Chapter 13 Concepts Exam in an effort to enter our VBA Intern Program. Several people are in various stages of the Exam process and we will continue adding Interns as the workload progresses. Others have passed with excellent scores and others still have some studying and practicing to do. But all in all, to all the people who gave it their best effort; I give you a pat on the back.

As we receive bankruptcy petition work from attorneys we will pass the work on to our Interns. Depending on the amount of work we receive, we will continue distributing work until all the people on the Inner Circle and Waiting List (see list below) are busy. After this level has been accomplished, depending on the workload, we will continue distributing petition work by accepting more people into the Intern Program who have passed the Exams. This cycle will be an ongoing process.

I cannot guarantee how much work each person will receive now or in the future. I have no control over this number. But I can tell you that we presently have 34 attorneys signed up for our service and I am receiving from 3 to 4 new attorneys every week. As soon as these attorneys are busy and have work, they forward the work to me for distribution to our Certified Virtual Bankruptcy Assistants.

However, keep in mind that this is the time of year when debtor bankruptcy slows down anyway. This is due to the fact that most debtors have children who are out of school and many families are on vacation. Filing bankruptcy is the last thing on the average consumers mind during this time of year. The average consumer will be buying school clothes in mid to late August so bankruptcy filings should pick up again in the latter part of August and continue until the Thanksgiving holiday. In addition, consumer spending slows down over the Christmas holiday and will continue again starting in mid-January and continue through the summer months; then the whole process begins all over again.

Due to the fact that we work in the debtor bankruptcy field, we must pay attention to the trends in consumer spending habits. However, there are also different levels of debtor bankruptcy law also. If you are an attorney (or work for an attorney) who has a larger business base, the law firm will normally maintain more consistently with bankruptcy filings throughout the year versus the comparison of an all consumer bankruptcy base.

INTERESTED IN BECOMING AN INTERN?

Pass the VBA Certification Exam with a score of 90% or better.
http://vbacertification.com/
(Once you pass you receive a free 1 year NAVBA subscription)

Pass the Introduction to Chapter 13 Concepts Exam with a score of 90% or better
http://www.713training.com/shop/cart.php?m=product_detail&p=101

THE INNER CIRCLE OF 713TRAINING.COM

The virtual bankruptcy assistants below have been chosen to be part of the VBA Inner Circle. These assistants currently work directly with 713Training.Com and 713Attorney.Com as interns. If you should have a question regarding a bankruptcy petition and I am not available, feel free to contact anyone on this list.

Clayton Holland
American Fork, Utah
clay@mybankruptcyassistant.com
http://www.my-bankruptcy-assistant.com/

Sidney Findley
San Bernardino, California
sid442001@yahoo.com
http://www.attorneyvba.com/

Gary Ostad
Elk Grove, California
gary@bankruptcyattorneyassistant.com
http://www.bankruptcyattorneyassistant.com/

THE WAITING LIST

The following virtual bankruptcy assistants have passed all the necessary exams and achieved high scores. They will be the next to be trained in an intern-capacity. The time period when the people on the Waiting List will begin their training depends on the level of workload. We try to distribute all work fairly and take into consideration all levels of expertise.

Geraldine Dinkin
Hallandale, Florida
gdinkin55@gmail.com

Sherri Homen
Central Point, Oregon
sherri@713attorneyassistant.com
http://713attorneyassistant.com/

Louise Hurwitz
Stuart, Florida
lhurwitz12@yahoo.com
http://www.go-accurate.com/

Melissa Henry
Opelousas, Louisiana
henrysvas@charter.net
http://henrysvasvcs.com/

Judy LaBoda
Phoenix, Arizona
info@AllStateBankruptcy.Com
http://www.allstatebankruptcy.com/

Sherri Nash
Murrieta, California
sherrinash@inlandempireoutsourcing.org
http://www.InlandEmpireOutsourcing.Org

Lonie Rosekelly
DeLand, Florida
enotary@rosekellymobilenotary.com
http://www.rosekellymobilenotary.com/

Susan Guinn
Lake Elsinore, California
susanguinn@msn.com
http://www.petitionprep.com/

Alexiss Harris
Clermont, Florida
aharris@professionalva.com
http://professionalva.com/

GERALDINE DINKIN STARTS NEW VBA BUSINESS

I had the pleasure of spending two days last week with Geraldine Dinkin, a virtual bankruptcy assistant who flew from Florida to Colorado for her VBA training. Before scheduling her 1-on-1 training session in Colorado, Geraldine spent a great deal of time studying the basic training materials. Like Clay Holland (the VBA who trained the week before), Geraldine had prepared a set of notes that were cross-referenced. This training reference helped Geraldine to find quick answers to questions and she plans to use it during the first several bankruptcy petitions she inputs in order to reduce potential errors. I think this is an excellent idea and I commend Geraldine on the work she has already put into her education.

Like many people, Geraldine Dunkin found herself out of work and decided to enter the legal field. She paid over $6,000 to attend a 2 year paralegal program. After spending the time and money, she discovered that paralegals are paid a low salary to start their career. She also felt she was discriminated against due to her age (50) because many of the jobs she interviewed for were offered to the younger person.

This is when Geraldine started researching on the internet and found 713Training.Com. She was shocked that all the materials she needed for training only cost her $700. She only had to spend a few months training (at her own pace) and could immediately start earning a very good income without any regard to age discrimination. Why? Because the skills of accurately preparing well-detailed Chapter 7 and Chapter 13 bankruptcy petitions is a skill that is NOT taught in any law school or paralegal program. Having these skills allows you to name your own price, work the hours you want, make the money you want and even work from your laptop as you travel. It is the perfect business that has very low overhead expenses to maintain.

Once she purchased all the training materials, Geraldine then decided to invest another $650 into private two-day training. During this training I was able to provide Geraldine with much more information as well as take her knowledge to the next level. There is no doubt that Geraldine is going to be a very successful virtual bankruptcy assistant and I am so happy that she found us.

After Geraldine returned home, she sent me this nice email:

I feel that our time was well spent and most informative. You provided me with additional insight and valuable information regarding the world of bankruptcy.

ARE YOU INTERESTED IN ADVANCING YOUR VBA CAREER?

Most owners of successful companies do not offer people the opportunity to spend two days with them at their office and offer to train them during the process. However, I welcome you to my home office for training because the skills needed in this nitch market requires additional training you may not always get in books and videos. In fact, attorneys also visit and spend time training here in Colorado; but the majority of them are able to be trained over the internet because they already have legal knowledge and experience.

Below are links to the different training options available to you for bankruptcy petitions:

1 Day or 2 Day Private Training at the Colorado Office
http://www.713training.com/shop/cart.php?m=product_detail&p=98

Bankruptcy Petition Review
You prepare a bankruptcy petition and we review it prior to filing with the court
http://www.713training.com/shop/cart.php?m=product_detail&p=86

2 Hours of Online Training
http://www.713training.com/shop/cart.php?m=product_detail&p=84

HAVE A GREAT WEEK

Victoria Ring
Certified Paralegal and Bankruptcy Specialist

Date: August 14, 2009
Place: Hacienda Hotel, 525 N. Sepulveda Blvd, El Segundo CA 90245
More Information: http://713training.com/seminar/
To Register: http://www.713training.com/shop/cart.php?m=product_detail&p=100

Matthew Williamson is an attorney at law in California, with offices in Monterey and Santa Cruz. He received a B.A. Degree in Political Science with highest honors from California State University, Chico. He earned his law degree from Monterey College of Law and immediately passed the California State Bar Exam in 1996. Matthew has been involved with 100s of California Bankruptcies in the Monterey, Santa Cruz and Northern California areas. Other law firms also attend his Bankruptcy seminars.
Website: http://www.montereybaybankruptcy.com/

Attorney Williamson will be speaking with Victoria Ring of 713Attorney.Com at the Chapter 13 Training Seminar to be held at the Hacienda Hotel on August 14, 2009 on the topic of Chapter 13 bankruptcy.

Attention Attorneys:
Improve Your Skills and the Skills of Your Office Staff
CHAPTER 13 PETITION AND PLAN TRAINING AND SERVICES

It is not uncommon for bankruptcy attorneys to struggle with balancing Schedule I and J as well as Chapter 13 Plans and avoiding objections and deficiency notices from the court. If you could be shown an easy, step-by-step method (utilized by 100+ bankruptcy attorneys) that would eliminate these problems, would you be interested? If the answer is yes, sign up to attend this dynamic one day Chapter 13 Training Seminar. Bring your laptop and join in the workshop activities.

Attention Virtual Bankruptcy Assistants:
Choose to work inside or outside the law firm. Learn a highly marketable skill and work for attorneys.

Chapter 13 bankruptcy petition skills are needed by thousands of attorneys across the United States, seeking to hire virtual bankruptcy assistants, paralegals and other staff members. The only problem is that these skills are not taught in any law school or paralegal course. NOW IS YOUR OPPORTUNITY to secure your financial future by learning the skills you need to work for attorneys and help people in the bad financial times we are all living in. With the knowledge you learn at this exclusive and unique Chapter 13 Training Seminar, you can immediately begin working for bankruptcy attorneys in any state either virtually (from your home office) or as an employee at almost any bankruptcy law firm in the United States.

More Information: http://713training.com/seminar/
To Register: http://www.713training.com/shop/cart.php?m=product_detail&p=100

Did you know that you can use PACER to obtain more recent bankruptcy statistics than the American Bankruptcy Institute? I kept checking www.abiworld.org for the past 6 months, waiting on the statistical data for the first quarter of 2009. In July 2009 I decided there had to be bankruptcy statistics somewhere that covered the most recent quarter so I spent some time doing online searches. To my surprise, PACER held the answer.

Like most of you, I never knew that PACER compiled statistical data, but it makes sense. When I found this section of PACER I had to share it with you.

1. Visit http://pacer.uspci.uscourts.gov/cgi-bin/ChkUser.pl
2. Login to PACER with your login and password
3. Click on VERIFY LOGIN
4. Begin your exploration

According to PACER (public access court electronic records), for the 30-day time period covering March 1, 2009 through March 31, 2009; a total of 134,282 bankruptcy petitions were filed in the United States with 99,575 of those being Chapter 7 and 33,123 being Chapter 13. The bankruptcy court was open 22 days during the month of March 2009, so this averages out to be 6,104 petitions filed per day, 254 per hour or 10.58 per minute.

During the same period of March 2008 (the previous year), a total of 92,173 bankruptcy petition were filed in the United States. The bankruptcy court was open 21 days during the month of March 2008, so this averages out to be 4,190 petitions filed per day, 175 per hour or 7.29 per minute.

I realize that PACER may be a little difficult to use, but I think they designed it that way on purpose so that only certain people would be able to fully utilize its information. It is up to you to take the time and explore the other hidden gems that PACER has available. As you find them, let me know so I can share with others.

Have fun.

Victoria Ring
http://www.713attorney.com
http://www.713training.com
http://www.713bankruptcy.com
http://www.navba.org
http://www.servantofjesuschrist.com