713Bankruptcy.Com's Blog

- by Victoria Ring, CEO

On September 25 and 26, 2009, the bankruptcy seminar was held in Denver, Colorado and it was the most dynamic 713Training.Com has ever offered.  The main reason for this was because this seminar was the first time that Attorney Matthew Williamson and I joined forces.  I taught the Chapter 13 seminar on Friday and Matthew taught marketing on Saturday.  The response from the attendees was better than we could have expected and we thank those who attended.

DAY 1 – CHAPTER 13 BANKRUPTCY SEMINAR

The group that attended this seminar came from very impressive backgrounds.  For example; Rita Browner of Kings Georgia, Virginia had been preparing bankruptcy petitions for attorneys before the law change in 2005.  She was such a joy to have in the class because she and I could talk about the old days of how we used to do things.  This helped the others to appreciate how much easier it is today with the improvements in technology.

One thing that shocked me was that Rita still knew how to calculate a Chapter 13 plan by hand.  I just received a phone call from an attorney the other day who asked me about the different mathematical formulas for calculating Chapter 13 Plans.  I could not answer her because it has been at least 12 years or more since I did a Chapter 13 Plan without the aid of a computer.  But Rita Browner knew all about the old method and was still using it.  You should have seen the expression on her face when I showed her how easy it was to calculate a Chapter 13 Plan with the software Chapter 13 calculator.  Rita said that attending the seminar had changed her entire life.

Tammi Miller from Nashville, Tennessee also attended.  She visited Colorado back in May 2009 when she trained with me on Chapter 7s.  Therefore, she was already familiar with them before she attended the seminar.  Tammi is still currently employed full time but will be opening her new virtual bankruptcy assistant (VBA) business very soon.  Tammi is playing it smart; she is going to work her VBA business simultaneously with her full time job in order to keep the bills paid.  Then, when Tammi is sure that she has enough business coming in, she will leave her secure employment and go into business for herself. I am very proud of Tammi.  She is going to be an excellent VBA and our industry is blessed that she decided to make this field her chosen career.

Victoria Brink-Guillot and Deb Shaffer both flew in from Pennsylvania.  Before the seminar, both had no idea that each one existed.  However, during the seminar Victoria and Deb discussed various business ideas and finally came to a very clear direction that both are going to follow when they return home.

Do you have any idea what this really means?  Many people spend years obtaining a clear direction for this business.  But Victoria and Deb not only discovered a clear direction; they also found each other and plan to work together targeting the attorney market in New York City.  There is no doubt they will have more work from attorneys than they can possibly handle.

How did Victoria and Deb derive at this conclusion?  They learned from Matthew Williamson (an attorney marketing genius) how to first identify the problem.  Both Victoria and Deb had tried marketing to attorneys in their rural Pennsylvania communities but neither had any success.  But Matthew helped them to open their eyes and question as to why they were limiting themselves to rural Pennsylvania?  They both lived less than 2 hours from New York City.  Since there are literally thousands of attorneys in New York City; the obvious answer is to market to New York City attorneys.

DAY 2 – LEGAL MARKETING SEMINAR

I have attended at least 200 marketing seminars throughout my career and nothing compares to the marketing seminar that Attorney Matthew Williamson presented.  The attendees at this seminar were dominated by attorneys and each one learned so much that their brains went into overload.  Why? Because Matthew Williamson is a dynamic presenter who teaches from personal experience.  Matthew has literally lost tens of thousands of dollars on bad marketing mistakes.  He knows what it is like to build a company from the ground up and he knows every marketing loophole all the way to the top.

John Cimino (an attorney who attended the marketing seminar) told me that his head could not absorb any more information.  I will have to agree with him.  Matthew Williamson is so knowledgeable about marketing that his mind is thinking at 1,000 miles per hour.  In fact, he provided so much information, and packed so much into the 6 hours, that it was a mental exercise just to keep up with him.  I cannot recommend Matthew highly enough and I urge you to contact him if you want to build your law practice or virtual bankruptcy assistant business. His website and contact information are at:

http://www.montereybaybankruptcy.com

DO NOT MISS THE NEXT SEMINAR

The Chapter 13 Bankruptcy and Legal Marketing Seminar will be offered again on October 30 and 31, 2009 in Los Angeles, California.  Due to space limitations at the Travelodge at LAX (where the seminars are being held) we only have space for 20 people, you MUST pre-register if you want to be assured a seat.

To attend the Chapter 13 Bankruptcy Seminar Only:
http://www.713training.com/workshop/seminar_03.html

To attend the Legal Marketing Seminar Only:
http://www.713training.com/workshop/seminar_04.html

To attend BOTH the Chapter 13 and Marketing Seminar:
SAVE $150 by SELECTING an ADDITIONAL DAY:
http://www.713training.com/shop/cart.php?m=product_detail&p=104

I recently discovered the links below to help both bankruptcy attorneys and virtual bankruptcy assistants. I am passing them on to you as soon as I could. I hope they help bring you business.

https://lawyers.justia.com/signup
This is a brand new attorney directory where ONLY attorneys can sign up and start answering questions. There is NO COST for a listing and it is an excellent marketing tool.

http://blawgsearch.justia.com/
Excellent legal blog search so you can keep updated on all the latest bankruptcy information.

http://lawyers.justia.com/lawyers/bankruptcy-and-debt/
Another resource for locating attorneys working in bankruptcy.

For additional freebies and marketing tips:
http://www.713bankruptcy.com/archives/153
http://www.713bankruptcy.com/archives/143

Marilyn Perkins, a virtual bankruptcy assistant, arrived from Hamden, Connecticut yesterday and we began her 1-on-1 training session today.  During the training, Marilyn asked me to provide a sample of some petitions on PACER so she could understand how the entire process worked after the case was filed.

I logged into PACER and found two excellent cases that provide the extreme so that these errors are easily identifiable.  I wanted to pass these along to you so you can review these cases and learn from them like Marilyn did:

For a real life example of a case where the petition was prepared INCORRECTLY:

Debtor Name:  Kelley Jean Charles
Bankruptcy District:  Georgia, Northern District
Bankruptcy Case No: 08-22110

Notice that the attorney filed incomplete schedules as well as filing two (not one) conversions from a Chapter 7 to Chapter 13 and then Chapter 13 back to a Chapter 7.  Also notice that this case was kept open unnecessarily for almost a year.  Think of the amount of extra paperwork and lost profits the law firm encountered simply because no prior training in preparing well-detailed bankruptcy petitions had been implemented.

For a real life example of a case where the petition was prepared CORRECTLY:
Debtor Name: Melissa Kivel
Bankruptcy District: Ohio, Southern District
Bankruptcy Case No: 08-bk-62522

To view these cases on PACER, login at:
http://pacer.psc.uscourts.gov/
Local the proper bankruptcy court, search for the debtor by the Bankruptcy Case No and click on HISTORY of documents in order to view the history of each case.

WANT TO FIND OUT MORE?

We cover this topic and many more at every Chapter 13 seminar.  In fact, we cover a wide range of different case examples and provide you with a logical analysis so that you understand WHY you take certain steps in the bankruptcy process.  It is not enough to simply follow directions.  By teaching you WHY you follow these directions, your skills will improve and you will always do a much better job.

Try to attend one of the upcoming seminars:

Chapter 13 Seminar in Denver, Colorado
http://www.713training.com/workshop/seminar_01.html

Marketing Seminar in Denver, Colorado
http://www.713training.com/workshop/seminar_02.html

Chapter 13 Seminar in Los Angeles, California
http://www.713training.com/workshop/seminar_03.html

Marketing Seminar in Los Angeles, California
http://www.713training.com/workshop/seminar_04.html

I hope to see you at one or both seminars and may you have a wonderful rest-of-the-week.

Victoria Ring, CEO
713Training.Com
http://www.713training.com
http://www.713attorney.com
http://www.713bankruptcy.com
http://www.navba.org

713Training.Com has introduced a new line of templates specifically for the consumer bankruptcy industry.  713Training.Com is the first company to design templates specifically for this industry as well as the first company to offer templates that provide training and information on the use of the document with every download.  Since 713Training.Com is the first in these innovations, the only way to understand the quality we provide we had to show it to you.  Download your free sample at:

http://www.713training.com/sample.pdf

We are just getting started …

There are presently only a few templates that have been developed by 713Training.Com that are available for purchase.  However, 713Training.Com will frequently be adding to the collection (we have 100s in our files to convert.)  As new templates are added, you will receive an email update.

In the meantime, the templates now available to you are:

1.   Motion for Relief from Stay
2.  Motion to Convert One Chapter to Another
3.  Motion to Modify Chapter 13 Plan
4.  Wage Garnishments Letters (for Employer and Creditor)

For more information and to purchase these new templates specifically for the consumer bankruptcy industry, visit:
http://www.713training.com/shop/cart.php?m=product_list&c=23
OR, visit http://www.713training.com/shop and click on the TEMPLATES category

The Washington State Paralegal Association has asked Victoria Ring to speak at their Fall 2009 Paralegal CLE Conference to be held on October 23, 2009 regarding debtor bankruptcy.  If you are interested in attending there are different price options to fit all budgets.  For example; if you just want to attend the luncheon, admittance is only $40. Of, if you want to attend all day, the full conference fee is only $200 for a non-member.  It is a great deal especially when you compare the benefits it will bring to your career as well as your marketing.

To sign up to attend the conference, visit:
http://www.acteva.com/booking.cfm?bevaID=189540

To find out more about the conference and to download a seminar brochure, visit:
http://wspaonline.org/

Accompanying Victoria to this event will be ROBIN HARVEY, Vice President of the NAVBA and TJOQKA WHITE, Virtual Bankruptcy Assistant.  713Attorney.Com will be an exhibitor at the conference, so make sure you stop by so we can meet you in person.

The following questions and comments were submitted through email to 713Training.Com. The answers are provided by Victoria Ring who is not an attorney.  Therefore, the information provided in this article is for training purposes only and no whole or part should not be regarded as legal advice.

DEAR VICTORIA:

I have a debtor that owns a home based business.  In addition to what her company grosses, she has paid herself a salary for the past 6 months from her business.  On the Means Test, do I have to average the amount she paid herself from the business (Line 3), and in addition, average the monthly net business income (Line 4)?  Or, do I fill in Line 4, only?  Please help!!! First time I’ve had this situation.   My attorney is waiting for Form.

RESPONSE FROM VICTORIA:

First of all you need to fill out the Business Income and Expense worksheet that is included in most of the bankruptcy software programs. If you are using Best Case software, scroll down to the VERY BOTTOM of the list of forms. There is a folder named SUPPLEMENTAL FORMS.  Inside that folder is a form named BUSINESS INCOME AND EXPENSES.

Fill this form out and make sure it is filed as an attachment to Schedule I when the petition is filed.

Take the AVERAGE NET INCOME (Line 23) and enter this figure into Line 3 of the Means Test.  If you refer to the form you will see that Line 3 states: Net Payroll Other Than Debtor.)  Therefore, you will NOT include the money the debtor pays herself from the business on this particular worksheet form.

Since we now understand this information, we can reasonably deduce that the money the debtor pays to herself needs to be listed on LINE 7 or LINE 13 of Schedule I.  Check with your attorney to be sure.

Also remember to remind the attorney that he or she needs to obtain 6 months of bank statements from the debtor’s business account as well as her personal account.  The attorney will need this to verify the debtors’ earnings reported within the bankruptcy schedules.

Note: In some states, the attorney will simply take the bank statements with them to the 341 Meeting and hand to the Trustee. In other states, when the bank statements are used as pay advices, they would need to be filed with the bankruptcy petition (sometimes the court even requires a cover sheet.)  Always check your local rules of procedure to address questions at this level.

DEAR VICTORIA:

The debtor is married but is filing as an individual.  I included the husbands’ income in the Means Test because they do not live in separate households.  My problem is that I am not sure how to complete the Statement of Affairs for the husband.  I put the wifes income for 2009, 2008, and 2007 but do I also need to include the husband income for the same years even though he is not filing bankruptcy?  I was told only put 2009 for the husband because its only this year that counts for CMI.  It just does not look right to me and I wanted to run it by you.

RESPONSE FROM VICTORIA:

They may do things different in California but in all the petitions I have done (if the husband is not filing) we would place the husband’s income under Item 2 of the Statement of Affairs.  It would be listed as Spousal Contribution.  The husbands income would also be listed under Schedule I as well as the Means Test.

However, you may want to call your local California Help Desk because I have found that California has many strange customs that is totally different from other states.  I learn so much when I visit California, so make sure you check out my response to make sure you are complying with the court rules.

DEAR VICTORIA:

This is my first bankruptcy petition and I need some help.  I am filing a petition for my client and I am in California.  As you know, this is a community property state.  If a husband and wife are divorced and living in separate residences, and the husband wants to file bankruptcy without his wife, will the wife be responsible for the debts that are discharged and the husband does not pay?

RESPONSE FROM VICTORIA:

I did a little online research and I found the following information at
http://bankruptcy-law.freeadvice.com/consumer_bankruptcy/spouse_bankruptcy.htm
which states (in part):

…. Community property and common law (also called “equitable distribution”) are the two types of martial property ownership. The vast majority of states apply the equitable distribution rules; nine states apply the community property rules. If you live in a common law property state, your spouse’s bankrupt estate will include his/her separate property and half of the jointly-held marital property. The non-bankrupt spouse will not have to worry about the effects of the bankruptcy on his or her separate property…..

UPDATE ON CHAPTER 13 SEMINARS

I would love to invite all of you to Denver for the Chapter 13 Training Seminar next Friday and Saturday.  This seminar is very special because it is the first time Matthew Williamson has offered such a low introductory price for his day of marketing training.  When Mr. Williamson does seminars in California, the attorneys pay as high as $1,000 to attend.  But Matthew and I have been working on other projects that have been beneficial to his law firm; and Matthew offered to provide this training to help attorneys and virtual bankruptcy assistants alike who attend this one particular seminar.

This marketing seminar will definitely put you ahead of the game.

In addition to attending the Denver seminar you will receive a FREE Chapter 13 Training Workbook. This is the BRAND NEW workbook that was recently introduced. However, those who attend the Denver seminar will get the first printed copies and Victoria Ring will personally autograph them for you at the seminar.

Denver is beautiful this time of year. The air is very clean and fresh. So, if you are living a life inside the rat race, take a breather and come to Denver. You can write the expenses off on your business taxes plus increase your income at the same time.

I hope to see you there. To sign up, visit:
http://www.713training.com/workshop/seminar_01.html

Re: Motor Vehicle Values

An attorney emailed me a Chapter 13 petition today for a bankruptcy petition review.  He had balanced out Schedule I and J and had a remaining excess of $2,822.55.  However, when the attorney proposed a Chapter 13 Plan payment of $2,822.55; the Chapter 13 Plan calculator said the payment needed to be higher to cover the debts.  An amount of $3,750.16 was suggested by the software program.

In many circumstances, when a law firm is faced with a similar scenario, they will immediately start trying to reduce expenses on Schedule J.  This line of reasoning is NOT protecting the debtor.  Before you reduce expenses and take money out of the debtors pocket (which should be a strategy that is used as a last resort), go over Schedule A and B with a fine tooth comb.  You may be able to find an error you made or the attorney may be able to reduce the interest rates, calculate a different monthly payment, do a cram down, strip a mortgage lien or any other number of options to protect the debtor.

However, the petition I reviewed for my attorney today was caused by a very simple error that is impossible to see on the surface.  I wanted to pass this important information on to you as soon as it happened so you can recognize the problem and deal with it on a future case to avoid this same problem.  Allow me to explain the process I went through to solve this issue so you will have a better understanding of what I am talking about:

1.    I began my analysis by reviewing Schedule A and B to understand how the debts were classified. Attorneys and their assistants often do not classify debts correctly and this will throw off the Chapter 13 calculation.

2.   Next, I review Schedule I and J to see if any of the figures seemed out of line.  (Note: If you are a beginner in this field, you will not be able to do this when you begin your career because it is a skill you need to learn over time.)   For this particular petition, nothing was out of line so I had to dig a little deeper.

3.    Next, I reduced the claim amount on the motor vehicles to the market value.  This is called a CRAM DOWN.   Because the claim amount was reduced, the monthly payment was reduced.  However, this reduction still did not make any dent into lowering the Chapter 13 Plan payment from $3,750.16 to the $2,822.55 the debtors could afford.  To read the article I wrote concerning cram downs visit:
http://www.713bankruptcy.com/archives/203

4.   Next, I double and triple checked every piece of information on Schedule A and B.  When I was reviewing the motor vehicles on Schedule B and determining if they could be crammed down any further I decided to check the Kelly Blue Book value on a 2008 Lexus.  The attorney had a market value of $27,450 but Kelly Blue Book showed only $16,200.

I asked myself: Why was there an $11,000 difference on this one vehicle and the other vehicles matched their Kelly Blue Book values?  I called the legal assistant at the law firm and asked her to get the client file and tell me what the year, make and model of the 2008 Lexus was.  When she reviewed the car title she found that the model was different from the information the debtor provided on the Client Intake Forms.   When the change to the market value on the 2008 Lexus was made on Schedule B, the Chapter 13 Plan balanced out perfectly with the $2,822.55 proposed monthly payment.

Think about this for a moment; this one tiny, simple little error could have cost the debtor almost $1,000.00 per month.  I was so thankful that a lady in our office helped me to discover the problem so that it could be fixed before it went to court.  Not only did this simple change save the debtor $1,000 per month, it also saved the attorney money and time because eventually they will discover the problem and need to fix it.  Or, in the worst case scenario, the debtor stops paying into the Chapter 13 Plan and the case is dismissed for non-payment.  However, making this minor adjustment prior to filing the bankruptcy petition, problems like these are eliminated.

Summary

Although this article centers around a Chapter 13 scenario; the information is essential for any other bankruptcy chapters also.  It is EXTREMELY important to make sure you have the correct market value of ALL assets as well as ALL motor vehicles. Whether you use Nada Guides or Kelly to obtain motor vehicle values, when you obtain the [trade in] value dollar amount, PRINT the webpage to a PDF or paper so the attorney has it with him or her when attending the 341 Meeting.  This print out provides the verification the attorney needs to negotiate settlements with the lender or aide in allowing the Trustee to accept the cram down dollar amount for the motor vehicle debt.

For a list of links specifically to help you when preparing bankruptcy petitions, visit:
http://www.713attorney.com/links/prepare_petitions.html

Do you need a petition reviewed?

http://www.713training.com/shop/cart.php?m=product_detail&p=86
or http://www.713training.com/shop/ and click on TRAINING to view all the training products and services we offer to attorneys, paralegals and virtual bankruptcy assistants

NOTICE: Victoria Ring, the author of this article is not an attorney and has never attended law school. She has worked in the legal field since 1977 and obtained her Certified Paralegal Certificate in 2001. Victoria is also a Bankruptcy Specialist and obtained her certification testing through the Association of Bankruptcy Judicial Assistants.  Victoria is also a speaker, training instructor and developer of all the products sold by the parent company 713Training.Com. To contact Victoria Ring directly visit:
http://www.713attorney.com/contact.html

Released: Friday, September 11, 2009
Title: The Chapter 13 Bankruptcy Seminar Training Kit

For info and/or to order, visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=106

Can’t Attend a Chapter 13 Seminar?  No problem.
This kit is the next best thing to being there.

The Chapter 13 Seminar Training Kit contains:

1.   The actual 124-Page Workbook used to train students at our Chapter 13 seminars.

2.   DVD instructional video of Victoria Ring visually performing the steps necessary to complete Exercise 1 and 2 within the Workbook. Along the way, Victoria provides many excellent tips and techniques to help you learn faster and increase your productivity.

3.  AUDIO CD that you can listen to either on your computer or driving in your vehicle that provides you with almost 3 hours of instruction, not provided on the DVD.  This audio is narrated by Victoria Ring and is the same materials she covers at her actual live seminars.

This kit was designed to be used by both attorneys as well as non-attorneys who work under the direction of licensed attorneys. Together, the three products make up the training materials covered in the actual Chapter 13 Training Seminars which are held throughout the United States. Now, you can study the materials at a time convenient for you.  Simply pop in the AUDIO or DVD and follow along in the Workbook.  Within a matter of a few hours, you will be introduced to concepts that will greatly improve your Chapter 13 bankruptcy petition and Chapter 13 Plan development skills that you will amaze yourself (or the attorney you are working for.)  As long as you have a general knowledge of how to prepare a Chapter 7 petition, this kit will challenge you and take your skills to the next level and beyond.

Here are what a few people think about the 713Training.Com seminars:

Thank you for the excellent information provided at the Chapter 13 seminar.  My attorney is going to be amazed how knowledgeable I am.  (A.H., Turlock CA)

I liked the practical information such as where to obtain values for real property.  I also learned to place student loans on Schedule F and the reason for it. I think a lot of the practical information is helpful when working for an attorney because they often are so busy they do not have time to acquire this type of information.  (G.J., Los Angeles CA)

I am convinced there is no other training like your Chapter 13 seminars available.  I was so impressed with the level of training that I am sending my paralegal to the next one you have in California.  (Arthur R. Hausmann, Esq., Newport Coast CA)

I had not previously worked with the Means Test in any detail.  After attending your seminar, I now feel very comfortable working not only with the Means Test. but the Chapter 13 Plan as well.  I also believe that my skills have improved to the point that I can discuss the petition with attorneys and feel more at ease.  (S.F., San Bernardino CA)

This best thing I enjoy about the Chapter 13 seminars is that the training is so crystal clear.  It takes the God-given talent of a true teacher to be able to take a complicated subject and make it easy for people to understand, even if they never worked in the legal field before.  Victoria teaches by using real life examples we can all identify with and I always get ”brain overload” after I have attended her seminars.  (B.R., San Antonio TX)

For info and/or to order, visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=106

Many of you are aware that I maintain an internal Inner Circle list of virtual bankruptcy assistants who have passed the VBA Exam and Chapter 13 Concepts Exam with a score of 90% or higher.  I use this Inner Circle list to distribute bankruptcy petition work when I receive the work from attorneys.

Bankruptcy petition work is distributed in order of your final score.  For example, if you score 95% on the VBA Exam and 100% on the Chapter 13 Concepts Exam, you will receive an assignment of work sooner than someone who has lower scores.  Therefore, it is important for you to study, practice, read and follow all directions within the Exam in order to obtain the highest score possible.  All answers to both Exams are provided in the training materials you can purchase online at:
http://www.713training.com/shop

In the meantime, please check the list below to see if your name is on the list.  If not, you may become eligible to be on the Inner Circle list by:

1.  Downloading and purchasing the VBA Exam and pass it with a score of 90% or better:
http://www.vbacertification.com/test/vba_certification.pdf

2.  Downloading and purchasing the Chapter 13 Concepts Exam and pass it with a score of 90% or better:
http://www.713training.com/shop/cart.php?m=product_detail&p=101

Note: If you attend a Chapter 13 Concepts Seminar, you can take the Exam without cost. To view upcoming seminars, visit:
http://713training.com/workshop/

NAMES OF VBAs ON INNER CIRCLE LIST

Clayton Holland
Sidney Findley
Gary Ostad
Geraldine Dinkin
Sherri Homen
Louise Hurwitz
Melissa Henry
Judy LaBoda
Sherri Nash
Lonie Rosekelly
Susan Guinn
Lake Elsinore, California
Alexiss Harris
Scott Graham
Charloma Banks
Tim Backstrom
Necol Alexander

BANKRUPTCY PETITION WORK STATUS

We currently have 24 bankruptcy attorneys who have signed Agreements to send their bankruptcy petition work to 713Attorney.Com for preparation.  All 24 attorneys have been issued a set of Client Intake Forms (personalized with their law firm name and contact information) as well as an Instruction Sheet explaining the step by step process.  At this time, we are waiting to receive work. As soon as a petition is received, it will be distributed to a VBA within 24 hours.

Please be aware that the normal slow down points for law firms who practice in Chapter 7 and Chapter 13 consumer bankruptcy are:

(1)  November 15 to February 15; and
(2)  June 1 to September 15

The reason for this is because during the Thanksgiving, Christmas and New Year holidays, the average consumer is using their credit card to make purchases and is not thinking about filing bankruptcy at this time.  The same is true during the summer months when the average consumer is on vacation and spending time with their family.  Again, they are not thinking about filing bankruptcy during these two periods of time. The only consumers who normally file bankruptcy during these two periods of time are consumers who are forced to; such as a threat of foreclosure, wage garnishment, lawsuit, etc.

This is why we anticipate law firms will begin sending us Chapter 7 and Chapter 13 bankruptcy petitions within a short period of time.  713Training.Com wants to be prepared to meet the workload and we would be honored to add your name to the Inner Circle list.

NOTICE TO ATTORNEYS

If you would like 713Training.Com to prepare your Chapter 7 and/or Chapter 13 bankruptcy petitions, download your free Bankruptcy Attorney Start-Up Kit at:
http://www.713attorney.com/bankruptcy_attorney_startup_kit.pdf

This kit will provide you with details about the services we provide as well as an explanation of costs.  Our services are available to bankruptcy attorneys nationwide.  We serve your petition preparation needs no matter how large or small.  Discounts are available for designated quantities.

Victoria Ring

Issue 167

The following questions are from attorneys and virtual bankruptcy assistants that we received this past week. The answers are provided by Victoria Ring, a paralegal (not an attorney.)  If you have a question you would like answered by Victoria in a future issue, please email it to her at:
victoria@713training.com

Need immediate support with your bankruptcy petitions? See the Important Notice at the bottom of this issue.

QUESTION

I am trying to help another VBA.  She emailed and said she could not get Schedule I and J to balance. I sent her back the following reply and I wanted to know your feedback on my reply.  My reply to her was:

The purpose for the bankruptcy is to help a person that has had difficulty in paying their bills, to get a fresh start, so that they can pay their bills, and be a contributing member of society, rather than to just wipe a bunch of debt, and let them continue to not pay their bills.  So, if the debtor is $4,200 in the red every month, something will have to change or the trustee will dismiss the case, and the petition was filed for nothing.

ANSWER

You committed unauthorized practice of law when you stated:  [or the trustee will dismiss the case.]  When did you become an attorney?  You cannot predict when or if a case will be dismissed.

I am presenting this feedback to you in this forceful manner in order to help you realize the mistake you made can be CRUCIAL TO YOUR CAREER.  In fact, this statement could actually destroy your company if you continue to say things like this.  I strongly urge you to begin with the FREE online quiz I developed at:
http://www.quia.com/quiz/1790405.html
The next step is to enroll in an online Legal Ethics course through a paralegal organization such as http://www.paralegals.org
and advance your knowledge in this area.

An alternative to the statement you made would be something like: [there is a possibility that the trustee could dismiss the case.]  As a non-attorney, remember to use words that NEVER LOCK YOUR STATEMENT IN so that it is NEVER regarded as legal advice.  For example:  using the word [will] indicates that you are an attorney and have jurisdiction over the Trustee.  By using the words [there is a possibility] you are NOT putting your back against the wall.  You are simply saying that an event could or could not occur and your answer does not take a specific stand in any direction.  (Politicians use this age old tactic all the time.)

An attorney taught me these methods so that I would not commit unauthorized practice of law and cost him money in possible lawsuits.  (Attorneys take an oath to be responsible for the non-attorneys they employ.)  Below are a couple of references to help you get information on this topic:

http://www.bestwebbuys.com/9780735529045
http://www.abanet.org/cpr/mrpc/rule_5_5.html
http://www.training-classes.com/programs/00/07/757_ethics_and_the_law.php
http://www.theelearningcenter.com/detail/ethics_

QUESTION (actually a COMMENT)

This petition you sent me to do has been a really good learning experience.  The biggest lesson I have learned is to absolutely INSIST that the Client Intake Forms be filled out…ESPECIALLY the debt sheets.  Holy smokes!  It is ok that I have spun my wheels a ton on this one…because I have learned.

As I am sure you are well aware, when you do not have the needed information, it makes it a lot tougher to remember where you are at, what is missing; when you are going back and forth, back and forth, etc.  How many times can a person ask for the same data?  LOL

Next time I am going to say to the client: [OK, here are the debt sheets.  Fill them out completely for each and every debt, and get it back to me when you are done.  Then I will begin the work.]  When you learn the hard way, you do not typically make the same mistake twice!

ANSWER

I used to feel exactly the same way you do when I first started doing bankruptcy petitions. Unfortunately, you will learn that clients NEVER fill out the Client Intake Forms with the level of detail we need for preparing the bankruptcy petition.  Throughout my career and after being involved in the processing of thousands of bankruptcy petitions, I have only experienced TWO clients who filled out the Client Intake Forms accurately and completely.  Although my personal experience certainly does not count for all the bankruptcy petitions being processed, it does show you that the experience is rare.  Therefore, it would probably save you a lot of stress if you accept incomplete Client Intake Forms as a fact of life and rejoice if you ever come across a complete one.

Another way to look at the situation is to place yourself in the other person’s shoes.  The average individual or married consumer who files bankruptcy is normally not organized.  If they were, they probably would not be filing bankruptcy.  You cannot expect Chapter 7 and Chapter 13 debtors to suddenly acquire skills they never had before.  All you can do is coax them into developing organizational skills such as insisting they read the Instruction Page provided at the beginning of the Client Intake Forms and following the information.  If you need a free set, download them at:

http://www.713training.com/intake_forms/index.html

…. more questions and answers coming in the next issue

IMPORTANT NOTICE

Are you an attorney, paralegal, legal assistant or virtual bankruptcy assistant currently preparing bankruptcy petitions and you need some training and support?  713Training.Com offers two methods to help you:

Method No. 1: Join the NAVBA for as low as $19.99 and receive an immediate array of various training and support options; or

Method No. 2: Pay-as-you-Go with the Bankruptcy Petition Review service we offer. Links to both options are provided below:

Join the NAVBA
http://navba.org/JoinNAVBA

Purchase Bankruptcy Petition Review Service
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