713Bankruptcy.Com's Blog

The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. The best of the best were chosen to be published below.  The answers are provided by Victoria Ring who is not an attorney.  Therefore, the information provided in this material is for training purposes only and no whole or part should be regarded as legal advice.

DEAR VICTORIA:

If a lady is filing bankruptcy and she is pregnant at the time of filing, is the unborn child considered a dependent on Schedule I of the bankruptcy petition?

ANSWER:

No. An attorney explained it like this to a client one time who asked the same question: We do not know if your child will die at birth, be given up for adoption, raised by a family member or any other number of factors that could alter the dependent status of the unborn child.  Therefore, the child is not eligible to be a dependent until after the birth.

But, if the bankruptcy is still ongoing at the time the child is born and the child will be the dependent of the female filing bankruptcy, Schedule I and J would need to be Amended to allow for the dependent claim as well as the monthly expenses to care for the infant.

DEAR VICTORIA:

Am I to understand that I do not have to use a Certificate of Service when I initially file the bankruptcy petition?  That means I only need to use the Certificate of Service afterwards?

ANSWER:

You are correct.  The Creditors Matrix within the bankruptcy petition serves the place of the Certificate of Service.

DEAR VICTORIA:

If a bankruptcy case is closed, can it be reopened so the attorney can file an amendment?

ANSWER:

It depends on several factors.  How long has the case been closed? What are the reasons for reopening the case? Can the attorney prove to the Judge that there is good enough reason to reopen the case?  Was the case discharged or dismissed? (There is a big difference.)  Therefore, in order to sufficiently answer this question, you need to contact the Help Desk of your local bankruptcy court and obtain the rules for reopening a closed bankruptcy case so that your attorney can review them and make a decision whether to do so or not.

DEAR VICTORIA:

During an online search I found a motorcycle that was titled in the name of the debtor but the motorcycle was not reported on the client intake forms.  When I asked the debtors about it, the wife said it was repossessed and the husband said it was sitting in their garage.  Who should I believe?

ANSWER:

No one.  Your job as a non-attorney is not to make legal decisions. Make sure you document this problem and point it out to the attorney.  The attorney will need to determine the best way to handle the situation.

DEAR VICTORIA:

Do you really train attorneys?  I find that hard to understand.

ANSWER:

Why is it so hard to understand? Attorneys do not obtain training in how to prepare bankruptcy petitions and pleadings when they attend law school. They are trained in the legal aspects of the various chapters within bankruptcy; but they are not trained in the actual day-to-day operation of the bankruptcy law firm.  This is where I provide the service and it is one of the most fulfilling jobs I have.

DEAR VICTORIA:

I realize you are very busy and I thank you for everything you are doing to advance the Virtual Bankruptcy Assistant field. So, if you are not available, who else can I contact for help?

ANSWER:

The 713 Training.Com Team Members are:

Deborah Shaffer, Certified Paralegal and Chapter 7 Expert
Phone: 610-698-6977
Email: legallydeb@verizon.net

Clayton Holland, Chapter 13 Training Instructor
Email: clay@mybankruptcyassistant.com

Leanne Levett, Attorney specializing in foreclosures
Email: lalevett9@gmail.com

Robin Harvey, Vice President of the NAVBA
Email: fyrelitz2@yahoo.com

Michael Misenheimer, Creditor Bankruptcy Expert
Email: mmisenheimer@gmail.com

DEAR VICTORIA:

I am interviewing a prospective attorney client whose full-service bankruptcy practice includes Chapters 7, 11, and 13, and creditor representation.  He is a solo practitioner (25 yrs in bankruptcy) and is done with the hassle of training staff.  Do you (at a fee, of course) provide any personalized training in Chapter 11 and creditor representation?

ANSWER:

I would never recommend that a Chapter 11 be done virtually.  You must be able to work in the law firm office.  Why?  In a Chapter 11 there is no trustee so the rules change considerably compared to a Chapter 7 and 13.  Additionally, a CPA is normally hired to maintain bookkeeping records and report to the bankruptcy court every month.  Finally, you also should have some working knowledge of corporate law to work with Chapter 11s.

713Training.Com is solely dedicated to John Q public which is why we ONLY provide training in Chapter 7 and Chapter 13. Perhaps you have a Chapter 11 confused with a small business owned by a debtor.  Unless a debtor owes $1 million in Schedule F debts, the debtor still can file a Chapter 7 or Chapter 13 for their sole proprietorship business.

ONLY THREE (3) DAYS LEFT TO SAVE ON THE PRODUCTS BELOW:

Save $10:  Motion for Relief From Stay Template
http://www.713training.com/shop/cart.php?m=product_detail&p=107
Coupon Code:  octoffer2031 (enter this at check out)

Save $15: How to Do Online Deed and Land Records Searches
http://www.713training.com/shop/cart.php?m=product_detail&p=102
Coupon Code:  octoffer3022 (enter this at check out)

Save $10: Introduction to PACER and Locating Attorneys
http://www.713training.com/shop/cart.php?m=product_detail&p=87
Coupon Code:  octoffer1982 (enter this at check out)

Save $12: How to Market a VBA Business
http://www.713training.com/shop/cart.php?m=product_detail&p=88
Coupon Code:  octoffer1958 (enter this at check out)

Save $10: Motion to Modify Chapter 13 Plan Template
http://www.713training.com/shop/cart.php?m=product_detail&p=111
Coupon Code:  octoffer1988 (enter this at check out)

Save $50:  The Famous: How to Draft Bankruptcy Petition Training CDs
http://www.713training.com/shop/cart.php?m=product_detail&p=35
Coupon Code:  octoffer45454 (enter this at check out)

Save $100: Complete Bankruptcy Training Kit
http://www.713training.com/shop/cart.php?m=product_detail&p=59
Coupon Code:  octoffer200551 (enter this at check out)

… by Victoria Ring, 713Training.Com

Hi everyone:

I just returned from Seattle, Washington where I spoke on the topic: Bankruptcy Law Updates and What Paralegals Should Know About the Creditors Perspective, at the Washington State Paralegal Association CLE Conference which was held at the Seattle University Law School.

To view photos, visit:
http://713training.com/seattlewashington/

I also have provided a free download of the Conference Handout at:
http://www.713training.com/seattle_handout.pdf
(Be sure to utilize the excellent web link references on the last page).

My purpose in attending this conference was to bring more awareness to the necessity of a well-detailed bankruptcy petition as well as the virtual bankruptcy assistant (VBA) world.  As most of you know, VBAs are trained professionals who can benefit attorneys and save law firms thousands of dollars per year because of their elevated bankruptcy petition skills.  Increasing awareness in the importance of the bankruptcy petition is another method to furthering the awareness of the VBA. The reception was much better than I expected.   (Robin Harvey even told me that the paralegals were talking about bankruptcy in the hallway after I spoke.  This is a demonstration of the positive reception concerning his topic).

In the past, when I tried to provide knowledge to the paralegal groups, many of them were not impressed with the subject of bankruptcy.  However, the times are changing.  As I pointed out at the conference during my speech, the unemployment rate rose in 43 states last month (September 2009).  This brings the overall national average to 9.8 percent which is the highest unemployment rate since the Great Depression.  These statistics are phenomenal and they indicate that bankruptcy filings will only increase.  At the moment there is an average of 10.58 bankruptcy filings per DAY.

If you have considered the VBA field, now is the time to learn all the facts.

I have written an excellent free ebook you can download and read immediately. This ebook, entitled: What is a VBA? contains an extensive set of questions and answers as well as additional information and web links. To download your free ebook, visit:
http://www.713training.com/getstarted.pdf

To shop for training products and services, visit:
http://www.713training.com/shop

I hope you enjoy the photos and download the Conference Handout. It contains some excellent information about bankruptcy and Chapter 13s.

Victoria Ring
www.713training.com
www.713attorney.com
www.navba.org

Personal Note from Victoria Ring

Hello Everyone.  October has been a wonderful month to live in Colorado.  As many of you know, I moved 713Training.Com from Ohio to Colorado in February 2009 because it had been a lifelong dream of mine to live in Colorado Springs.  Therefore, this has been the first time I have experienced Colorado during the month of October and it has been quite amazing.  When I lived on the east coast the Fall colors consisted of greens and yellows.  In the west, the earth is colored in a southwestern flair; dark yellows, dark reds and browns.  It is absolutely breathtaking.

For those who know me personally, I am a nature freak.  Nothing thrills me more than to go out driving amid 14,000 foot tall mountains and watching elk drink from the Rio Grande.  Nothing is more beautiful to me than the views along The Highway of the 14ers in Buena Vista or driving to altitudes of almost 10,000 feet on Highway 67 between Divide and Cripple Creek.  Words cannot describe the beauty of Colorado and it has been an inspiration to my writing resulting in a positive impact on my business.  I look forward to much more in the months ahead.

My Next Speaking Event

I will be leaving Thursday, October 22 to fly to Seattle, Washington.  I will be speaking at the Washington State Paralegal Association CLE Conference.  My topic is: Bankruptcy Law Update and What Paralegals Should Know About Creditors Perspectives.  I have spent most of the weekend writing an outline and preparing a handout for the attendees.  Since it takes about 4 hours to fly from Denver to Seattle, I will have plenty of time to practice my speech, which is scheduled to be 90 minutes in length.

To view details about this event, visit:   http://wspaonline.org/ Click on the link in red titled: Meet Our Speakers and Learn About Session Topics Here (center of page)

Back Up Team Members are Now in Place

Due to the growth of 713Training and 713Attorney, I naturally am no longer able to handle all the training and support myself.  As you may know, it is impossible to cover every possible scenario a student will encounter when preparing Chapter 7 and Chapter 13 bankruptcy petitions.  Therefore, in order to do my job right, I must provide ongoing training and support on specific matters.

Students who are provided with this ongoing training and support are: (1) NAVBA members; (2) Students who attend our live seminars; (3) Students who travel to Colorado for private training; and (4) Attorneys and their staff members who utilize our training services either onsite or offsite.

The professionals that I am happy to introduce as the 713 Team are:

Deborah Shaffer
a Certified paralegal with over 25 years experience in the legal field; a VBA in Pennsylvania currently working for 3 attorneys; training instructor for Chapter 7 teleconferences
Email contact:  debshaffer@713attorney.com

Matthew Williamson, Esq.
an attorney in Monterey, California that specializes in training attorneys and VBAs how to market and grow their businesses and law firms
Website: www.montereybaybankruptcy.com

Clayton Holland
a Chapter 13 seminar training instructor, bankruptcy petition reviewer for VBAs and virtual bankruptcy assistant currently working for 3 bankruptcy attorneys
Website: www.mybankruptcyassistant.com

Leanne Levett, Esq.,
an attorney in Maitland, Florida that specializes in foreclosures and helping to keep families in their homes through her non-profit charitable organization: Earth Angeles Network which can be found online at http://earthangelsunited.org/ If you are looking for a worthy cause to donate to, this is a good organization to review.
Email: lalevett9@gmail.com

Robin Harvey, Vice President of the NAVBA
This wonderful lady is actually the new kid on the block.  However, she is doing very well with her VBA business.  Robin is happy to help answer any questions from beginners seeking more information about the virtual bankruptcy assistant field.
Website: www.bankruptcylawyersupport.com

Michael Misenheimer, Treasurer for the NAVBA
This fantastic guy specializes in creditor bankruptcy and he is well known throughout the paralegal world.  Due to his hectic life, Michael is happy to answer emails that do not take up a great deal of time if you are seeking an answer from the creditor perspective of bankruptcy.
Email: mmisenheimer@gmail.com

As you can see, we are blessed to have two attorneys on the 713 Team as well as another Certified paralegal beside myself and two active VBAs.   At the current bankruptcy filing rate of 10.58 persons every minute I am sure that more attorneys will be opening offices and 713Training and 713Attorney.Com will be adding more Team members in 2010.  I am also pleased about the high success rate we have had working with bankruptcy attorneys and their staff.  In fact, I learn something new every time I help to set up a new bankruptcy practice.  And the things I learn, I pass on to you.

Is 713 considering investors?

I was shocked this past week to receive 4 different emails asking if I would be interested in talking with investors about the growth of 713.  This is very flattering.  Of course I am always interested in entertaining ideas of how 713 can grow to the next level but so far, no one has made any offer that makes good sense to me.

One company wanted me to consider taking the operation to India.  I have a hard time with that one.  Perhaps I am from the old school, but I think most attorneys and clients would feel very odd about having their bankruptcy petition prepared in another country.  My first concern would be security.  Debtors expose their social security numbers, account numbers, employer names, and other confidential data in a bankruptcy petition.  Although it is public information I do not think many debtors would be happy to know that the information was being sent to India.

Besides, I do not think a bankruptcy petition can be prepared correctly utilizing the mentality of a document mill.  Often, investors view preparing bankruptcy petitions as nothing more than data entry.  THIS IS NOT THE CASE.  And for those of you who have read my training materials, you know there is much more to preparing a petition than filling out forms.  You have to be properly trained, know how to conduct online research, interview clients and much, much more.  I just do not think all of this can be done properly outside the United States so I declined this offer.

Another Law Firm to Set Up

I will be flying to Burbank, California on November 10 to assist an attorney in establishing his bankruptcy practice in Pasadena.  When I return on November 13, I will write an article and tell you all about it.  If you are an attorney and want to know more about training in debtor bankruptcy, visit:
http://www.713attorney.com/training_services.html

New Links I Found to Help You

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.

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

Future Plans for 713

I have always wanted to provide more methods of training including online training, web seminars and teleconferences.  However, I am only one person and there are only so many hours in the day.  Now that I have a solid set of Team Members in place, we will all be working together to bring you a host of new products and services in 2010.

Remember the October Sale for 713 Training Products

There are only TWELVE days left to take advantage of the tremendous savings on a wide variety of products that are listed below.  I have listed them again for your convenience along with the COUPON CODE so you can receive your immediate discount.  Be sure to act quickly because we will not offer another sale of this magnitude again until next October.

Save $10: Motion for Relief From Stay Template
http://www.713training.com/shop/cart.php?m=product_detail&p=107
Coupon Code:  octoffer2031 (enter this at check out)

Save $15: How to Do Online Deed and Land Records Searches
http://www.713training.com/shop/cart.php?m=product_detail&p=102
Coupon Code:  octoffer3022 (enter this at check out)

Save $10: Introduction to PACER and Locating Attorneys
http://www.713training.com/shop/cart.php?m=product_detail&p=87
Coupon Code:  octoffer1982 (enter this at check out)

Save $12: How to Market a VBA Business
http://www.713training.com/shop/cart.php?m=product_detail&p=88
Coupon Code:  octoffer1958 (enter this at check out)

Save $10: Motion to Modify Chapter 13 Plan Template
http://www.713training.com/shop/cart.php?m=product_detail&p=111
Coupon Code:  octoffer1988 (enter this at check out)

Save $50: The Famous: How to Draft Bankruptcy Petition Training CDs
http://www.713training.com/shop/cart.php?m=product_detail&p=35
Coupon Code:  octoffer45454 (enter this at check out)

Save $100: Complete Bankruptcy Training Kit
http://www.713training.com/shop/cart.php?m=product_detail&p=59
Coupon Code:  octoffer200551 (enter this at check out)

Thanks for your continued prayers and support.   Feel free to contact 713Training on our secure and confidential form at www.713training.com/contact.html

Victoria Ring, CEO
713Training.Com and 713Attorney.Com

On October 15, 2009 the first ADVANCED LEVEL Chapter 13 Teleconference Class was presented in an online teleconference format.  This teleconference received rave reviews and I would like to share some with you in the next section.

TESTIMONIALS FROM ATTENDEES

I attended the Denver seminar and I was impressed that the information at this teleconference was completely different.  A friend who introduced me to 713Training said that every product you have is new and different.  Although all your products work together, each one is unique and provides a different skill. I think 713Training is awesome!

No bankruptcy court or legal seminar I have ever attended provides this level of training in a manner that people understand.  I learned tonight that 713Training is the nugget of gold I have found and I thank you for the excellent training.

SUMMARY OF THE TELECONFERENCE

Victoria Ring began this teleconference by addressing ten (10) questions previously provided at:
http://www.713bankruptcy.com/archives/318

Along the way, she provided personal stories as well as tips and techniques she used that saves time and increases profit.  One talent Victoria has is to provide personal stories of experiences she has encountered during her career.  These real life stories are one of the reasons her particular training methods work.  People can quickly relate to a real life situation and therefore understand the why and how of each topic.  When people understand why and how they need to do a certain thing, they bridge the gap to understanding the skill being taught.

Victoria commented after the teleconference class was finished:

I really enjoyed teaching this seminar and I am so glad it was recorded so the information is never lost.  I was in a terrific frame of mind for teaching and when I got started I could not stop.  The information even impressed attorneys who listened to the recording, so I know the information will surely benefit virtual bankruptcy assistants.

Most people do not realize that I spend from 3-4 hours preparing for each training class before it even begins.  I do this because I want the information to be the best and most current available.  And because debtor bankruptcy is a topic that I truly enjoy, I naturally do the best job I can.  It is a great feeling to know that the training is helping so many people.

Thank you for your continued support of the products and services I develop.

RESOURCE LINKS

Chapter 13 Training Class Video Lesson
http://www.713training.com/shop/cart.php?m=product_detail&p=112

BONUS: Order the video above and you will receive a FREE COPY of the actual recorded teleconference. This audio will be in MP3 format which plays on most motor vehicle stereos as well as your computer.

Online Bankruptcy Training Class (for beginners to moderates)
http://www.713training.com/shop/cart.php?m=product_detail&p=115

Advanced Chapter 13 Training Class (for advanced students)
http://www.713training.com/shop/cart.php?m=product_detail&p=113

NO LONG DISTANCE CHARGES TO ATTEND
http://www.713training.com/shop/cart.php?m=product_detail&p=115

Topic:  Balancing Schedule I and J of the Bankruptcy Petition
Date:  Tuesday, October 20, 2009
Class Length:  1 to 1.5 hours (depending on questions asked at the end of class)
Cost:  $24.95

This teleconference training class will take you line by line down Schedule I and J of the bankruptcy petition.  It will also provide you with training as well as insider tips and techniques for improving your current bankruptcy petition preparation skills.

Instructor:  Deborah Shaffer, Certified Paralegal

Deborah Shaffer has worked in the legal field for over 20 years.  She holds a Bachelors Degree in Paralegal Studies and will be setting for the LSAT this fall in order to enter law school.  Additionally, Deb Shaffer has been successful as a virtual bankruptcy assistant and currently works for three attorneys in Pennsylvania.  She has assisted Victoria Ring in teleconferences since 2005 and continues to be an asset to 713Training.Com.

Benefits for Attending:

1.   Attending the live teleconference enables you have direct access to the instructor so you can ask questions to enhance your learning.

2.   You will receive access to the recorded teleconference when class is ended so you can listen to the information again and pick up additional tips and techniques.

3.   Certificate of Attendance personalized with YOUR name. Print on your color printer and frame.

4.   Toll free number access.  No long distance charges.

To sign up online now:
http://www.713training.com/shop/cart.php?m=product_detail&p=115

For only $24.95 and 1 hour of your time, you will learn skills that company trainers charge you $1,000s to learn.   Sign up now at:
http://www.713training.com/shop/cart.php?m=product_detail&p=113

Are you a virtual bankruptcy assistant?

The information you learn in this 1 hour class will provide you with knowledge to advance to the next level in your VBA career.  Professionals who become successful in any field are the people who attend advanced classes and continually improve their skills.  Improving skills makes you more invaluable to the attorneys you work with as well as ultimately helping improve the lives of debtors.

Are you an attorney?

The training provided at this Chapter 13 Training Class is based upon a real bankruptcy petition review provided by a practicing bankruptcy attorney.  You, as well as any member of your staff that works in the preparation of bankruptcy petitions will benefit from this training.  The level of detail in your petitions will also increase which results in higher profits for your law firm.

Are you a beginner?

Even if you are beginner to the bankruptcy field, you will still benefit from the training provided at this Chapter 13 Training Class.  A variety of different topics are covered and presented in various ways so that everyone from beginners to attorneys will learn something from this class.  In other words, you are welcome regardless of your present level of knowledge.

Besides, I am anxious to share with you all the information I recently learned so you can advance your knowledge.  The bankruptcy case reviewed in this online training class is an excellent case to train you on and I sincerely hope you will consider attending.

Extra Bonus:

**  Attending the live class will provide you with the opportunity to speak to me (Victoria Ring) personally and ask me any questions relating to the training.

**  A professional Certificate of Attendance is issued at the end of the class.  Print out on your ink jet, frame and hang in your office.  Or, add the Certificate to your portfolio for presentation to attorneys.

** Purchase the VIDEO for advanced training after the class is over. Visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=112

Class is limited to 85 attendees.  Sign up now and choose a date you will attend:
http://www.713training.com/shop/cart.php?m=product_detail&p=113

I hope to talk with you at an upcoming Chapter 13 Training Class.

Victoria Ring, CEO
713Training.Com LLC

ATTEND THE CHAPTER 13 VIRTUAL TRAINING CLASS

** Training in the comfort of your own home or office
** Earn a Certificate of Completion personalized with YOUR NAME for attending
** Classes offered on Thursdays and Sundays

SIGN UP NOW AT:
http://www.713training.com/shop/cart.php?m=product_detail&p=113

THE CHAPTER 13 VIRTUAL TRAINING CLASS WILL ANSWER THE FOLLOWING QUESTIONS:

1.   What is the number one reason most people cannot get their Chapter 13 Plans to balance when a second mortgage has been stripped?

2.   What is the name of the Motion that attorneys must use when stripping a second mortgage in a Chapter 13 Plan?

3.   In the preparation of the bankruptcy petition, how are unsecured portions of secure liens provided for on the Means Test as well as the Debt Classification?

4.   What are some quick tips to matching up Schedule I to the Means Test in order to reduce deficiency notices from the Trustee’s office?

5.   What is the suggested wording for Item 17 of Schedule I and Item 19 of Schedule J which, if eliminated, normally will cause deficiency notices from the Trustee’s office, resulting in a loss of time for the law firm?

6.   What are some quick tips regarding exemption selections and how not to commit unauthorized practice of law if you are a non-attorney?

7.   How do you know if a motor vehicle is eligible for a cram down and how is it properly recorded on the bankruptcy petition?

8.   What are some questionable expenses that attorneys need to be aware of before the petition is filed?  Non-attorneys need to know this also in order for them to bring their attorney’s attention to these questionable expenses.

9.  Although attorneys make the ultimate decision, what are some things non-attorneys need to be aware of so they can assist their attorneys in making the best decision possible?

10.  Why is it important to document the benefits to the debtor for the Chapter 13 Plan?  Knowing this information will significantly increase the profits for a law firm as well as improving the rate at which debtors stay in their Chapter 13 Plan.

MEETING DATES

Classes are held on Thursdays and Sundays.  Select the date you want to attend on the online order form when you sign up.

MEETING TIMES FOR ALL CLASSES

5:30pm — Pacific
6:30pm — Mountain
7:30pm — Central
8:30pm — Eastern

FOR ONGOING TRAINING, OPTIONAL VIDEO AVAILABLE
http://www.713training.com/shop/cart.php?m=product_detail&p=112

Attending the teleconference provides you with the advantage of being able to participate live and ask questions.  However, whether you attend the live teleconference or not, you will want to complete your training by purchasing the accompanying video lesson that covers all the steps that were presented at the live classroom.  Although the advantages to owning this video lesson are many, one advantage is that it will advance your skills in Chapter 13s and Chapter 13 Plans and you can watch the lesson over and over again until you understand it thoroughly.

This training video lesson contains:

1.   Step-by-step video that covers all topics in greater detail.
2.   PDF and BCB* file of the original bankruptcy petition
3.   PDF and BCB* file of the final version of the bankruptcy petition
4.   Full documentation of changes made throughout the bankruptcy petition in PDF format

* BCB files are able to be opened in EZFiling, New Hope and Best Case bankruptcy software so you can have more flexibility in making changes to enhance self-training methods.

EXTRA BONUS:

Pleading Template:  Motion to Avoid Secure Lien and Strip Second Mortgage (Retail: $18.95) included FREE on the video CD.  Visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=114

To purchase the Video Training Kit for Lesson 01, visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=112

http://www.713training.com/shop/cart.php?m=product_detail&p=114
by Victoria Ring, 713Training.Com

When I first learned of a Motion to Avoid Secure Lien and Strip Second Mortgage I was doing a petition review for an attorney.  I was told that many courts are requiring that the attorney file a Motion to Avoid Secure Lien along with the Chapter 13 Plan if they intend to propose a stripped mortgage due to unsecure equity.

The attorney I was doing the bankruptcy petition review for did not have a copy of the Motion so I conducted online research to find the pleading for her. During my research I found that <at this time> there is not one specific Motion that is used for all fifty states.  Instead, it is a pleading with a variety of different titles, making it difficult to find.  This of course is due to the fact that the government is still debating the issue regarding the mortgage industry at this period in our history.

During my research I found an excellent article on the USFN website written by attorney Ken Plott of Lundberg & Associates.  Due to copyright infringement I do not have permission to reprint the entire article for you. However, I can quote the following facts from Mr. Plott’s article:

1.   Bankruptcy Code 11 U.S.C. Section 1322(b)(2) provides that a Chapter 13 plan may modify the rights of secured creditors, with the exception of <a claim secured only by a security interest in real property that is the debtor’s principal residence.>

2.   The courts determined that the standard language in a trust deed or mortgage about <assignment of rents and escrow> does not jeopardize the anti-modification provision.

3.   The U.S. Supreme Court in Nobelman v. American Savings Bank, 508 U.S. 324 (1993), analyzed the interplay between Section 1322(b) and Section 506(a) and determined that bifurcation was not proper as it would modify the rights of the secured creditor in contravention of Section 1322(b)(2). However, the court did not address the impact of Section 506(a) upon Section 1322(b)(2) when there is absolutely no value remaining in the collateral securing the claim.

4.   It is fair to say that a majority of the jurisdictions now allow a wholly undersecured claim to be stripped and treated as an unsecured claim in a Chapter 13 plan. Some jurisdictions allow this to be done with a provision in the plan while others require an adversary proceeding to comply with Bankruptcy Rule 7001(2), a proceeding to determine the validity, priority or extent of a lien.

To read the entire article titled: “Bankruptcy Update: Reflections on Lien Stripping” online, visit:
http://www.usfn.org/AM/Template.cfm?Section=Home&SECTION=Article_Library&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=11893

For another excellent article about lien stripping, visit:
http://www.lienstripping.com/facts.php

For more information and to purchase your TEMPLATE now, visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=114

Since it has been 25 years or more since I input my first bankruptcy petition, I asked Clay Holland of My Bankruptcy Assistant to conduct an experiment.  I gave him a petition to input and asked him to write down all the things he learned as he prepared his first bankruptcy petition for an attorney.  Like many of you, Clay had received extensive training from the training materials developed by 713Training.Com; but as everyone knows, there is a difference between training and the real world.

The information below will help attorneys as well as VBAs to polish their skills throughout the bankruptcy petition preparation process.

A REPORT FROM CLAY HOLLAND
http://www.mybankruptcyassistant.com

Some of the things I learned doing my first bankruptcy petition include:

It is my job to drive the petition process, both with the debtor, and the attorney.

Being polite with the debtor goes a long way towards getting you the information you need, but sometimes it becomes necessary to get a little stern with them, in order to get them to do what you need them to, in order to get the information you need to get your job done.

Tell it how it is, and stand your ground.  Do not let the debtor or attorney sway you to do something different than what you know should be done.

Training is great, and will be a continuous thing, but nothing can teach you like the real thing.

The debtor often knows less than you think they do.

If there are five different ways to ask for the same piece of missing information, you will likely have to use all five of them before you get what you need.

When debtors come back to you with missing information, they often only have half of it, and you have to keep resending them back to get the rest of the information, until you have it all.

Do not forget to do your own bit of gumshoe detective work (i.e., with Google), to uncover undisclosed assets.

It is amazing to me how upside-down a person can get with their finances.  I thought I lacked in good money management skills until I started doing bankruptcy petitions.  Then I found out that I am not bad at all.

Keep your contact with the debtor friendly and empathetic, yet professional. Do not try to be their friend but rather a professional at all times.

If at all possible, get the facts all at once.  Piecing together client intake information one piece of information at a time is a lot of work and wastes a great deal of time.  Insist that the debtor fill out the forms COMPLETELY, before starting to work on the petition.  This means that you need to review the forms before starting up the software program and make sure you have everything before starting.

You must decide how much work you are willing to do for the debtor.  For example, are you willing to chase down information that is missing for them, or are you going to insist that the debtor do for themselves?  This is not my bankruptcy filing, so doing the work for themselves is the preferred method. No one knows about their debts better than the debtors themselves.

Keeping the attorney in the know every step of the way keeps him/her very happy with your work.  As VBAs we should always strive for happy attorneys which will result in repeat business!

When it comes to drafting a bankruptcy petition, credit reports are not worth the paper they are printed on.  They can be used to verify certain information if necessary, but NEVER try to use them to populate the schedules of the bankruptcy petition.

Debtors often do not seem to grasp the seriousness of their situation, and unfortunately, we cannot really do anything to help them see this because we are not attorneys.  This is one important reason why you need to maintain contact with your attorney at all times.  When the attorney understands the situation, he or she can properly advise the client.  The job of a VBA is to gather this information so the attorney can make an informed decision, nothing more.

Once the debtor understands how dire their situation is they are much more cooperative.  Therefore, it often takes a call from the attorney to get the debtor on the ball to provide you with the information you need to complete the preparation of the bankruptcy petition.

Do not be surprised by the crazy things debtors have done, even right up to retaining the attorney, that have resulted in them being in the situation they are in.  Just be glad you are not in their shoes and have sympathy for them.  Remember, we work on the DEBTOR side, not the CREDITOR.  If you have no concern for the average consumer perhaps you may want to consider working on the CREDITOR side.  (I am biased of course.)

Do not do the attorneys job for him/her, even if they ask you to.  They are the one with the education and license and they need to direct your work. Under no circumstance should you ever perform the functions of an attorney.  If the attorney needs a legal question answered he or she can consult with another attorney in their area for advice.  It is not the job of the VBA to provide attorney level services at VBA prices.

Petitions for self-employed debtors are more difficult than for debtors who are not self-employed.  Make certain to consider this when making price quotes to attorneys for VBA services.

Debtors are so busy trying to keep up with the Jones; they often do not even know what they have.  Example: A client tells you that they have a 1999 vehicle when it is really a 1994.  Or, their handwriting is hard to read. Victoria Ring of 713Training.Com teaches her students a wide variety of tips for VBAs to help them self-check their work so that problems like these are minimized; but it takes time to learn all these insider tricks and they cannot be learned overnight.

Do your very best to prepare an accurate petition, but at the end of the day, you have to hope the debtor has done their part to help you do your job properly, so that you can best help them and protect their attorney in the best way you can. Most of all have fun and feel good that you helped someone, as well as providing an additional income stream for your family.

WEB REFERENCES

1-on-1 Personal Training in Colorado
http://www.713training.com/shop/cart.php?m=product_detail&p=98

Low-Cost Online Training for 2 Hours by Telephone
http://www.713training.com/shop/cart.php?m=product_detail&p=84

Individual Bankruptcy Petition Review
http://www.713training.com/shop/cart.php?m=product_detail&p=86

Chapter 13 Bankruptcy Seminar Training Kit
http://www.713training.com/shop/cart.php?m=product_detail&p=106

Frederick Roglevy, the attorney developer for New Hope Software, is the first company to acknowledge the VBA industry. Because of this, I believe that as VBAs and attorneys, we should support New Hope and recommend it to others.

Frederick Roglevy has demonstrated his support for our VBA industry by:

1.  Developing software that incorporates the needs of virtual bankruptcy assistants. See:
http://bankruptcysoftware.com/virtualassistantfeatures.shtml

2.  Providing a link to the 713Attorney website at:
http://bankruptcysoftware.com/legallinks.shtml
under the category OTHER BANKRUPTCY SITES

By providing a link for attorneys to the 713Attorney website, attorneys are introduced to the benefits of hiring a virtual bankruptcy assistant. From there, attorneys are directed to the NAVBA website to find virtual bankruptcy assistants.  Therefore, our 713Attorney link on the New Hope Software website will benefit the entire industry as a whole.

As I previously stated, when I developed the training videos I used Best Case software because it provided the least learning curve for the students.  However, Best Case is DOS based and Bankruptcy2009 (developed by New Hope Software) is the only petition preparation program written in the same language as Windows itself, C++. That means it is fully compatible with the latest Microsoft versions of Windows, including 64 bit systems.

You may want to download a free copy and check it out for yourself at:
http://bankruptcysoftware.com/demo.shtml

Also, feel free to send Fredrick Roglevy an email and thank him for his continued support of the VBA industry. His email address is  admin@bankruptcysoftware.com

Victoria Ring
www.713attorney.com
www.713training.com
www.navba.org