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 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 for instance I am completing a petition today, do I use the debtors income for November or December on Schedule I?  I am working with 2 paralegals at a law firm and one says use November and the other says use December. Can you please clarify?  Thank you and have a great Christmas.

ANSWER:

The best way to remember is to read the title of Schedule I.  It is titled: CURRENT Income of Individual Debtor(s).  That means that you would provide the CURRENT MONTHLY income on Schedule I.

DEAR VICTORIA:

What happens if someone needing to file bankruptcy does not have enough money to hire an attorney or even to do it themselves? What if they did nothing?? Would the debts eventually fall away? They do not own a thing and are on public assistance.

ANSWER:

I am not an attorney and I cannot provide you with any type of legal advice. All I can say is that it all depends on the debts. If the debts are credit card companies and the debts are not secure, the company could still file a lawsuit without bankruptcy protection.  In many ways, bankruptcy helps protect debtors but it is not for everyone.  I suppose if the people were homeless and living in a tent, I doubt they have anything the credit card companies would want.  But if the person you are referring to has a bank account, automobile, home, furniture, etc; the unsecure creditors could file a lawsuit and put a lien on those items.  They really need to talk to an attorney.  Even if they cannot afford an attorney, they can still go in for a 30-minute consultation and get better advice than asking the opinion of people like you and me.

DEAR VICTORIA:

When I tried to strip off a second mortgage I would treat the debt under the classification of secured portion on the Chapter 13 plan tab as an Unsecured General Nonpriority. Is this the correct classification when striping off a second mortgage?

ANSWER:

No.  If the debtors are proposing NOT to pay the second mortgage, the debt classification would be: NOT IN PLAN since the debt is not being repaid.  Some attorneys want the debt to still appear on the Chapter 13 Plan to acknowledge the debt but they propose it NOT to be repaid.  Also remember that you need to prepare the Motion to Strip the Second Lien when the petition is filed so that an Adversary Proceeding is assigned to the case.

DEAR VICTORIA:

In September I started doing petitions for an attorney here in Florida after her legal assistant suddenly left.  I have been logging into her computer from my home office to do them.  She recently talked with me about coming into her office 3 days a week to work on them on an hourly basis instead of being paid on a petition by petition basis.  While she was very complimentary on my work, I think one of the reasons for doing this is to get the petitions done at a lower fee.  She has not given me any new petitions in the last 3 weeks and I know that she is now doing her new petitions herself along with her secretary.  Because I have access to her computer, I can see that the new petitions are not being done to the level that I would do them.  I am truly not interested in having a commitment of being at her office 3 days a week from 8:30 to 5:30.  However, I would not be adverse to helping her out on my schedule.  Any suggestions on how to approach her so that I can retain her as a client?  She has been very easy to work with the last few months.

ANSWER:

When I negotiate in business I am very upfront and forward. My dad taught me that PLAIN talk was EASIER understood.  I would say something like: I need to be paid $___ per petition. It does not matter if you want me to work in your office or at my home office, but this is the bottom line.  If the attorney likes your work and believes you to be invaluable to the growth of her law firm, she will come back with an acceptance or a counteroffer and you can go from there.

Another good piece of ammunition to use is to take a piece of paper. On that paper, make a list of the profit the attorney is already making on every petition you process. I would show the attorney how you will be able to save them money.  The moment you show anyone how to SAVE MONEY, they are all ears!!  I wish you the best of success. My advice is NEVER to back down from a fair offer and negotiate for the good of BOTH parties, not just you.

SPECIALS OF THE WEEK

Save $20:  The Chapter 13 Plan Training Workbook
http://www.713training.com/shop/cart.php?m=product_detail&p=80

Complete Kit Only $49.99: Training in Mortgage Cram Downs and Strip Downs
http://www.713training.com/shop/cart.php?m=product_detail&p=113

Only $39.99:  Chapter 13 Exam with Online Grade
http://www.713training.com/shop/cart.php?m=product_detail&p=101

Only $375.00: Personalized Training at the 713Center in Colorado Springs
http://www.713training.com/shop/cart.php?m=product_detail&p=98

Only $150.00:  Personalized Online Training
http://www.713training.com/shop/cart.php?m=product_detail&p=96

FREE AND LOW COST PLACES TO MARKET YOUR WEBSITE

Attorneys always ask me where they can market their website.  Most of them believe it will cost thousands of dollars to market on the internet.  This is only a myth.  Contrary to popular belief, there are many free and low cost places that attorneys can market their practice and increase their sales within less than 30 days.  The catch?  There is no cost but it does take time to go through all the links and fill out the forms.  Some companies want to sell you automatic submitters that do the job for you, but most search engines have ways to detect if an automatic robot or a real person is submitting the form.  Therefore, to risk these potential problems and have your submission be deleted, do the job by hand; the old fashioned way.  (Hint: Perhaps you know a young person who is internet savvy and has time on their hands to do this for you.)

I have spent many months gathering the data that appears at:
http://www.713attorney.com/links/attorneymarketing.html

I originally put the list together for attorneys that hired me to set up their practice.  As the list grew I decided it could be an extremely valuable tool for other bankruptcy attorneys that I could not reach.  To my knowledge, there is nothing like it available on the internet.  I hand compiled it.  I visited every website to verify the links work. I even connected all the links to the actual form so you do not have to waste time looking for it on the website.

I sincerely hope this list helps you in your bankruptcy practice.

TIP FOR VIRTUAL BANKRUPTCY ASSISTANTS

Offer to market the law firm website for the attorneys you are currently working with. Charge them a flat fee and use the links to market their website. It is an excellent add on service and all the preliminary work has been done for you.  Enjoy!

Thanks to all of you for your continued support of 713Training and 713Attorney.  I wish you a wonderful New Year in 2010.

Victoria Ring
Certified Paralegal and Bankruptcy Specialist
Bio at http://www.713attorney.com/victoriaring.html

If you are seeking to find more jobs working from home as a virtual assistant, you will find the new Virtual Assistant Job Directory on the 713Attorney.Com website to be extremely beneficial.  You can start using this free directory right now by visiting:

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

10 Tips for Improving Your Virtual Assistant Skills

#1 — Allow clients to tell you what THEY want. Never tell them what YOU want.

#2 — Never allow a client to know they are interrupting your work. If you are too busy to answer the phone or property do a job, do not do it until you can give it your full and dedicated attention.

#3 — Never answer the phone or emails when you are upset and angry.  Breathe deep 10 times and close your eyes for 15 seconds. This helps to prevent taking out your frustration on potential clients.

#4 — Within 1 hour after receiving work from a client, acknowledge the receipt and provide them with an estimated completion time.

#5 — Always return phone calls within 24 hours. If you do not have the time to return phone calls hire a virtual assistant or someone to answer them for you.

#6 — Always check your business email many times every day. More than 82% of work is lost by virtual assistants who rarely view their email to respond to requests from potential clients.

#7 — Always follow up with every potential client who contacts you. For example: if they send you an email, invite them to be added to your LinkedIn or other social networking group that is BUSINESS related. Your personal and business life should always be kept separate.

#8 — Never discuss personal business with your customers and potential clients. However, be willing to listen to any personal problems they want to share because it helps you to better solve their problem and get the job.

#9 — Always remember that you work for your client. They do not work for you.

#10 — Treat every client in the same manner as you would be treated if you stayed at the Ritz Carlton or the Waldorf Astoria and you will never be without work.

The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. 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.

QUESTION

How successful have the attorneys you work for been in confirmation of a proposed strip down?

ANSWER

An attorney I work for as a virtual assistant in Victorville CA has been successful in the confirmation of two Chapter 13s where a strip down of the second mortgage was proposed.  As soon as the attorney provided me with this information I quickly developed training materials to teach other attorneys how it was done.

Additionally, the Central District of California Bankruptcy Court began offering classes to teach attorneys how to be successful in proposing strip downs.  This fact alone confirms the information I have been blessed to be privy to.

QUESTION

How successful have the attorneys you work for been in confirmation of a proposed cram down?

ANSWER

I have personally worked on only one case where an attorney in Ohio was successful in getting a cram down of the primary residence confirmed.  The mortgage company was Washington Mutual and the attorney filed the case during the same time they were transitioning.

However, I have talked to attorneys in Texas, Florida and Missouri who have discussed cases with me where they have been successful in negotiating cram downs and saving their clients money.

Again, as soon as I learn about something that can benefit the debtors I tell you about it through my articles and training products.  However, I cannot guarantee that all cram downs and strips downs will be successful.  That would be impossible and illogical for me to even try and attempt.

QUESTION

If a strip down of a mortgage is confirmed, what will be the outcome at the end of the 3 or 5 year Chapter 13 plan period?

ANSWER

No one knows.  The law could change at any minute or change 100 times between now and then.  I believe this question would even be unpredictable by President Obama at this time.

QUESTION

I am an attorney and I feel very uneasy about proposing a cram down or a strip down.  I am afraid that it would cause additional litigation with the mortgage company and perhaps cost me more than I charged the client for the petition.  Do you have any suggestions to ease my fear?

ANSWER

There are a couple of good choices available to you that you may want to consider:

1.  If you propose a cram down or a strip down and the mortgage company files an Objection, this would open door for negotiation to still save the debtors a great deal of money.  Once a number was reached, the attorney would charge the client for this negotiation and enter into an Agreed Order with the mortgage company.

2.  If you propose a cram down or a strip down and the mortgage company files an Objection, you can simply change the figures on Schedule A and file an Amendment if you are too timid to negotiate on the debtors behalf.

Remember, all creditors must file a Proof of Claim.  Most attorneys I have worked with who propose cram downs and strip downs will monitor the case on PACER and look for any Proof of Claim filed by a mortgage company.  They compare the claim amount stated by the mortgage company with the cram down amount proposed in the Chapter 13 Plan.  At this stage, the attorney contacts the attorney for the mortgage company and begins the negotiation process to come to an Agreed Order.

QUESTION

Can I propose a cram down or a strip down for every client?

ANSWER

Not at this time.  From the teleconferences I have listened to, taught by judges and attorneys; cram downs and strips downs are only approved in HARDSHIP cases until the Senate passes the proposed Bill.  In other words, if a debtor can afford to pay back more than the first mortgage, a strip down is then paid back as UNSECURED.  If the debtors income is considered hardship and they file a Chapter 13 (demonstrating their ability to at least try and pay back all they can afford) cram downs and strip downs are often normally confirmed.

QUESTION

Can you guarantee that my proposed cram down and strip down will work?

ANSWER

Of course not.  No one can.  The goal here is to TAKE A CHANCE to help keep homeowners in their homes.  A cram down or a strip down may or may not work at this period in time.  It is a chance you take.  If you do not want to take the chance, and are not willing to take that extra step of CARE for your clients, then do not propose a cram down or a strip down and call it a day!!

QUESTION

I am a publisher for the creditor side of bankruptcy. I heard that you are teaching debtor attorneys how to reduce mortgages.  Could I interview your attorneys for my book?

ANSWER

I will tell you the same thing I told this person:  Proposing cram downs and strip downs are something that attorneys must TAKE A CHANCE in proposing.  I am NOT an attorney.  I am a paralegal training instructor; which means that I would never tell people that cram downs and strip downs work in every case and without any snags or problems.  The information I am teaching at this time will change at any minute.  The Bill is currently before the Senate; therefore, we only have a SMALL WINDOW of time to use these training methods and they will become obsolete.  Publishing this information in a book is worthless because it will be out-of-date before the book is printed.

SUMMARY

Please STOP taking my drive to KEEP CONSUMERS IN THEIR HOMES and turning this into a she-said, he-said scenario.  I realize that the legal world does this almost spontaneously (which is why I chose to leave the confines of a back-biting office staff environment long ago.)  But I wrote this article to help attorneys to stop thinking about all the bad things that can happen and TRY to help your clients.  Even if you should fail with some cases and excel in others, at least you know you did your best and provided your clients with the best possible service you can.

I wish all of you a beautiful Christmas holiday and peace of mind.

Victoria Ring
Certified Paralegal and Training Instructor

LISTEN TO THE MORTGAGE CRAMDOWN AUDIO TRAINING AT:
http://713training.com/mortgagecramdown/

Depending on the speed of your internet connection, this 25-minute audio should immediately begin playing as soon as you click on the link above.  It has been programmed to play in Windows on both Internet Explorer and Firefox platforms.  I hope you enjoy it.

This information is extremely important.  Attorney can use the information to save their clients literally thousands of dollars and VBAs can use the information to provide their attorneys with a valuable service.  In fact, this is the information law firms needs to help save homes and keep homeowners in their property.  Even if you do not need the information right now, it is worth your time to listen and pass along the information to those who can benefit.

There is nothing to download. Just click on the link above and listen to the audio of the training conducted by Victoria Ring on December 13, 2009.  Thank you for taking time to listen to this excellent information in mortgage cram downs and strip downs.

Have a wonderful week.

The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. 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:

I have a client that sold 2 cars right before filing bankruptcy.  I need to list them but unsure where to put cars sold. I looked in Statement of Affairs and the only information I came across that is close is under financial accounts closed.  In this category it states: information that has been sold; but it asks for an institution name.  The cars were sold in a private sale and sold for $2600.

ANSWER:

Place it under Item 2 of the Statement of Affairs: Income Other Than from Employment or Operation of a Business.  If the sale was made within the past 6 months, it needs to be listed on the Means Test as well.

DEAR VICTORIA:

A client wants the Petition to be filed by the end of this week but wants to know what effect filing will have on his tax return.  Can you advise on this matter?

ANSWER:

No.  I cannot advise on any legal matter because I am not an attorney. You also are not an attorney and cannot provide any legal advice to clients either. All you can do is gather the information and record the asset.  List the ANTICIPATED TAX REFUND under Schedule B but do not include it on Schedule I or the Means Test, since the income has not been received within the current month (Schedule I) or the past 6 months (The Means Test). In some states the tax refund is 100% exemptible; but you will need to check the exemption allowances for the jurisdiction the debtor resides in.

HINT: Many VBAs and non-attorneys make the mistake of trying to help clients feel at ease and end up giving legal advice to help calm them down.  To become more familiar with your role as a VBA, I strongly urge you to take the free online exam regarding unauthorized practice of law which is available at:
http://www.quia.com/quiz/1790405.html

DEAR VICTORIA:

I filed a joint chapter 7 for an attorney in Florida. We tried to exempt both cars under FL exemption allowance but find out that because both cars where in one debtors name he was going to pay the unexempt amount of one of his car. To prevent this we converted the petition to a chapter 13 so we can keep the car and to strip off the second mortgage.

Now the old trustee’s attorney under the chapter 7 filed an Application for payment of Quantum because he said that he spent 3.15 hours at a rate of $350.00 with a total of $1,102.50 plus what he spent on Pacer to gather all the information so he can have the asset turned over.

They want the debtor to respond to the application order but the attorney does not know the procedure. Should the debtor respond that the attorney should get paid or should he object to that order?

ANSWER:

At any time, if an attorney is unsure of a procedure, the attorney (or you) needs to contact the court to obtain the correct procedure.  In this case, you would need to contact the Chapter 13 Trustees office.

Simply find the Chapter 13 Trustees office online at:
http://www.13network.com/

Call the office and say something like:  My attorney received a request from the Trustee (use his or her name) to respond to an Application Order for Case No. (whatever).  Is there a specific form the Trustee needs for us to use or what procedure should we follow?

Every court, every trustee and every office is different within the court system. Every office has a different procedure they follow and those are the types of things you need to familiarize yourself with so that you can help your attorney better.  Unfortunately, you often cannot learn these types of things in basic training. This type of education is obtained on the job.

PERSONAL NOTE FROM A VBA:

Victoria, you are so valuable to this industry. I am really glad I found you. Thanks to you I have income coming in to support my family. I want to thank you for your hard work and dedication to this industry.  Take care of yourself and delegate the things that other people can do so you do not work too much.  Your health is more important than anything in this world. And of course your personal relationship with God because He is the one that gives you the knowledge and the strength to be successful in your life.  If there is anything I can do to contribute to the growth of your company do not hesitate to contact me.  God Bless you, Yuleidy Lopez. Email: yuleidylopez@live.com

REPLY FROM VICTORIA RING:

You are such a dear sweetheart to care so deeply.  I appreciate you very much.  However, I have SO MUCH to be thankful for.  I love life and I am having a ball.  I will continue having fun until I get out of here – then I get to have fun throughout eternity.  So the next time you are feeling down, remember:  (1) You have eternal life and you will never die; and (2) If you love Jesus Christ and are saved, eternity is going to be the best part of your life!!  Therefore, I think I can suffer through a little pain on Earth because eternity with Jesus Christ (in my new disease-free body) will be much longer; it will be forever.

HAVE A WONDERFUL WEEK!
Victoria Ring

NEW AMENDMENT PROPOSED FOR MORTGAGE CRAM DOWN BILL
VOTE TO BE TAKEN BY THE HOUSE BEGINNING WEDNESDAY, DECEMBER 9
a report published by Victoria Ring, 713Training.Com

The following information was brought to my attention by Corvi Urling, a financial professional who attended our teleconference on Dec 8, 2009:

H.R. 4173, the Wall Street Reform and Consumer Protection Act will be considered by the full House of Representatives beginning this Wednesday, December 9th.

This bill will allow an Amendment to be added to the original House Bill enabling bankruptcy judges the power to grant loan modifications (aka mortgage cram downs and strip downs) in an effort to help unemployment consumers stay in their homes.  The effect the country is experiencing due to the rapid rate of foreclosures is causing the immediate necessity to pass this Bill.

EXCERPT FROM ARTICLE PUBLISHED BY THE AMERICAN BANKRUPTCY INSTITUTE

House Judiciary Chairman John Conyers (D-Mich.) has submitted an amendment to the financial overhaul package that would allow a bankruptcy judge to modify the terms of a home mortgage, including reducing the principal, CongressDaily reported today. Fifty-four amendments were filed two hours before deadline submission yesterday, and the House Rules Committee will meet today to consider the parameters for floor debate and again Wednesday before issuing its rule. Debate on the legislation could start as early as Wednesday.

LINKS FOR MORE INFORMATION:

Newsfeed from December 8, 2009
http://www.cnbc.com/id/29529573

Link to ABI Article (you need to login to read the entire article)
http://www.abiworld.org/ Click ONLINE RESOURCES then BANKRUPTCY HEADLINES

Newsfeed from April 30, 2009
http://www.foxnews.com/politics/2009/03/05/house-passes-mortgage-bankruptcy/

SAMPLE LETTER (OR EMAIL) TO YOUR REPRESENTATIVE:

I am writing to urge Rep. __________ to support the amendment to H.R. 4173 being offered by Reps. Conyers, Turner, Lofgren, Marshall and others that will help stabilize the housing market by helping families avoid foreclosure.

The foreclosure crisis continues to worsen and is preventing the economy from beginning its recovery. In 2009 alone there have been more than four million foreclosures, and it has been forecasted that unless something is done, there will be 14 million more over the next few years.

The Obama Administration’s Making Home Affordable plan has failed because it provides a carrot, but no stick.  The stick was always intended to be judicial loan modifications.

Obviously, the banks and servicers are not going to modify loans voluntarily.  We need judges to be able to modify the mortgages on primary residences for homeowners in bankruptcy.

If you voted yes on HR 1106 this past spring, this new amendment is identical to H.R. 1106.  If you voted no on HR 1106: Please consider that in the intervening months, the foreclosure crisis has gotten much worse.  If our economy is to recover, we need the housing market to stabilize before any recovery can take hold.  Thank you.

Sincerely,
Your name here

HOW TO FIND YOUR HOUSE REPRESENTATIVE:

https://writerep.house.gov/writerep/welcome.shtml

KEEP UP TO DATE AS NEWS IS HAPPENING:

http://www.blogs.abi.org/
This is a link to the Bankruptcy Blog Exchange.  It is a free American Bankruptcy Institute service that tracks 31 bankruptcy-related blogs.  A post today examines a New York Times article on why most mortgage modifications fail.  The House is again considering mortgage cramdown in chapter 13. Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top.

TRAINING TOOL TO HELP YOU:

http://www.713training.com/shop/cart.php?m=product_detail&p=112

by Victoria Ring

SCARE OF THE WEEK

On December 2, my doctor called to tell me that my heart scan readings came back a little high and she wondered how I was feeling.  I told her I had been short of breath for the last 2 or 3 days and she said to drop everything I was doing and go to the emergency room because I could be having a heart attack.

Wow!  I was shocked.  I had no pain in my chest but yet I trusted my doctor; so I followed her advice.  After seven hours experiencing the horrors inside an emergency room, I was released only to discover that I had bronchitis.  My doctor breathed a sigh of relief, but I ended up $950 in debt and I considered it all to be a waste of time.  Anyway, I got behind in processing orders and responding to emails so please forgive me if you had any problems reaching 713Training.Com this week.

ROBIN HARVEY TO VISIT NEXT WEEK

Robin Harvey is flying from Oakland, CA to Denver, CO on Tuesday, December 15.  She will be spending about 6 days with me so that she can be trained in the operation of the business.  After the near-death experience I had back in 2007 (see www.servantofjesuschrist.com) when I almost lost the company due to my 5-week hospitalization, it has always been my intention to train someone that I could trust to take care of 713Training.Com if anything should happen to me again.  Robin Harvey is a good sister in Christ and I look forward to the fellowship we will have when she comes to visit.

NEXT PLAN ON THE AGENDA

On January 21-22, 2010, the American Bankruptcy Institute will be sponsoring the Rocky Mountain Bankruptcy Conference in Denver.  Robin Harvey is flying in a second time to attend this conference with me so that she can advance her knowledge in the business of bankruptcy.

Robin plans to stay a few days after the conference so that we can meet YOU and spend some time providing you with any help we can to help you grow in your bankruptcy knowledge.   The plan is for you to attend the Rocky Mountain Bankruptcy Conference and for an extra $75 (to pay for food and drinks) you will be invited to a special PRIVATE gathering in Colorado Springs to spend with Robin Harvey, Victoria Ring, and other bankruptcy professionals.  I think it is a really good way to finish off a good conference for a very ow price.  Look for a special announcement to arrive in your email very soon about this event.

COOL LINKS I FOUND THIS WEEK

http://jotform.com/
A web based form builder.  Build your form from easy to use templates, copy the code to your webpage and enjoy!

http://www.carbonite.com/
Online backup for your computer.  The first time you use this service it will take a LONG time to back up your system. Be prepared to let it run overnight.

http://www.layoutready.com/
Low cost Microsoft Word templates.  Use these to design brochures, business cards, and much more. They are perfect for attorneys as well as virtual bankruptcy assistants.

http://www.typingtest.com/certificate.asp
Prove your typing skills and get a certificate for less than $10.  This would be a good certificate to add to your portfolio.

http://www.logo-design-studio.com/
Get a logo designed for your law firm or business for only $69.97.  I have personally used the service and I highly recommend it.  The designers are very good and provide fast service.

SPECIALS OF THE WEEK

Motion to Avoid Secure Lien and Strip Second Mortgage
http://www.713training.com/shop/cart.php?m=product_detail&p=114

Chapter 13 Training in Mortgage Cram Downs and Strip Downs
http://www.713training.com/shop/cart.php?m=product_detail&p=112

The Chapter 13 Plan Training Workbook
http://www.713training.com/shop/cart.php?m=product_detail&p=80

Bankruptcy Petition Case Training Collection
http://www.713training.com/shop/cart.php?m=product_detail&p=117

HAVE A WONDERFUL WEEK

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

I attended the Chapter 13 Cram Down and Strip Down teleconference.  In the materials I received there were 33 pages of pleadings that provide samples for the Strip Down procedure.  However, there are no pleading samples for first mortgage cram downs.  Where do I get this information?

ANSWER

The attorney said that in the case of a cram down, the Trustees have not required her to file a Motion.  The Motion is only required for stripping the second since it is an elimination of debt.  However, in a cram down, when the debt is not being eliminated but proposed to be paid at a market value amount, this is simply proposed within the Chapter 13 Plan itself.

If there are no objections from the mortgage bank, the cram down is allowed in hardship situations.  The key is the word HARDSHIP.  If the debtors can afford to pay more than the base market value, the court may require them to pay more.  This is why the balancing of Schedule I and J are so important when the petition is first filed.

I sincerely hope this helps to address the issue.  I appreciate you coming to our teleconference and posing this question.  In order to find the answer to your question I had to do some research; and along the way, I also learned something new.  Thank you.

DEAR VICTORIA

Client owes income taxes for 2007.  They will be dischargeable April 15 2010 right?  What if client filed for an extension in 2007 and did not have to pay until October 2008?   Are they still dischargeable in April 2010?   Or do we have to wait until October 2010?

ANSWER

Are you asking if you have to wait until October 2010 to file bankruptcy? Regardless, taxes are NOT dischargable at any time.  They are provided for on Schedule E since they are a PRIORITY claim.  If the client has been making payments on their tax debt since October 2008, you would list the payment on Schedule J in a Chapter 7.  However, if the case is a Chapter 13, the monthly payment for the federal, state and county will need to be figured into the Chapter 13 Plan payment.

There are tax attorneys who specialize in working with the IRS or state tax departments to reduce tax debt, but in a bankruptcy, taxes are not discharged regardless of how old they are.

DEAR VICTORIA

I just learned something cool.  I do not know if you have them in Colorado, but here in Utah, we have a furniture store called RC Willey. The Utah attorney said the following:

The angle I used with RC Willey is to coincidentally file just after they get a judgment because at that point their PMSI secured interest is gone. I file before they record the judgment as a lien on real property.  I just did this a little bit ago and the debtor was able to keep the items because the secured interest was gone and no new lien was filed on her home.

ANSWER

Excellent.  Thank you for sending the information so that I can publish it for others to learn from.

DEAR VICTORIA

I plan to attend more teleconferences and order additional training materials when my financial situation improves. Currently, I am unemployed and unable to jump aboard like I would want to at this time. But, I would like to thank you for suggesting that I connect with the VBA after the teleconference ended; she has been very helpful thus far, and I anticipate great opportunities to network with other virtual bankruptcy assistants in the future.  Enjoy your Christmas and best wishes for a healthy and prosperous New Year.

My email address so that other VBAs can contact me is:  hopesuz@aol.com

ANSWER

Thank you so much for your kind email.  I understand what it is like to be unemployed.  But you can use this time to research and improve your knowledge in the area of bankruptcy.  Be sure to visit the links page at http://www.713attorney.com/links and this will provide you with a good starting point.  It could take months to go through these links so enjoy!  You will not need to spend a penny.

TRAINING IN CRAM DOWNS AND STRIP DOWNS OF MORTGAGES

Chapter 13 Training in Mortgage Cram Downs and Strip Downs
http://www.713training.com/shop/cart.php?m=product_detail&p=112

Teleconference – Training in Mortgage Cram Downs and Strip Downs
http://www.713training.com/shop/cart.php?m=product_detail&p=113

Pleading – Motion to Avoid Secure Lien and Strip Second Mortgage
http://www.713training.com/shop/cart.php?m=product_detail&p=114

SPECIAL DISCOUNT OF THE MONTH

Save $20.00 – Close Out Product
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NEW PRODUCTS

Bankruptcy Petition Case Training Collection
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Bankruptcy Petition Case Training Collection
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Price: $39.99

Learn from REAL WORLD examples.

This CD collection contains ACTUAL bankruptcy cases that you can research and follow on PACER.  Each case file contains (1) client intake forms; (2) attorney cover sheet; (3) notes and emails pertaining to relevant points within the case; (4) the actual software file so you can follow the progression from beginning to end; (5) pay advices; (6) credit counseling certificates; and much more.

The ten (10) cases included in this collection will train you in a variety of skills as you will see below:

Case No. 1
This case is a very simple Chapter 7.  Joshua is a young man with little income. The only problem with this petition is a couple of small assets that you will encounter on Schedule B.  Therefore, this case is perfect for the beginner to practice with.

Case No. 2
This is another excellent case for beginners to practice with.  It is a standard Chapter 7 with few assets and very few problem situations.

Case No. 3
This is an excellent case to help introduce you to fraud.  After I had done the initial input on this petition I discovered the client was hiding several assets and the attorney asked me to overlook items that I needed clarification on.  Due to these problems I stopped working on the case immediately.  Later I found that the California Bar Association had filed charges against the attorney but I do not know the outcome.

Case No. 4
This case will introduce you to how IRS taxes are treated in a Chapter 7 case for a client filing under federal exemptions.  You also will learn the reason this case has not been filed yet; the client owes the IRS almost a quarter of a million dollars.  In this case, the attorney is negotiating with the IRS before the petition is filed.

Case No. 5
This case is currently delayed due to the excessive amount of inventory the debtor has in his business.  This case may be filed by the time you purchase this collection so check the Eastern District of New York on PACER to follow the case.  This is an excellent case to show you how unexempt equity can cause devastating problems for debtors.

Case No. 6
This is a typical business case that starts off easy but turns into a catastrophe.  This debtor thought he could quickly file a Chapter 7 and dismiss his debts.  But he continually refused to provide the attorney with verifiable income records for his business.  Once we started digging around and asking questions, he decided to not file his case and never returned to the attorney’s office.

Case No. 7
This is a standard Chapter 7 bankruptcy case but with one twist: the motor vehicle could be eligible for a strip down so that the debtor can save $7,000. Since this is a Chapter 7 I was unable to propose a cram down inside the petition.  If this would have been a Chapter 13, there would have been no problem.  However, in a Chapter 7, the process is treated a little differently and this case will teach you the skill so you may be able to save clients thousands of dollars on future petitions that you do.

Case No. 8
This is a Chapter 7 that was originally drafted by non-experienced legal assistants working for a bankruptcy attorney.  You will find in my notes the many different problems occurred with this petition and you will be able to document the changes throughout the petition process.  This case will demonstrate exactly how poor quality work at law firms can cost you a great deal of time.  Working with your attorneys to develop a smooth routine where work flows at maximum efficiency require making mistakes and making adjustments.  However, once you have achieved the right mix; both the attorney and VBA will enjoy healthy incomes.

Case No. 9
This case will point out the specific errors the attorney made so that you can apply the same reasoning to future bankruptcy cases that you work on.

Case No. 10
Compare both files included in this case and cross-reference with my notes to understand how this Chapter 13 was put together.  This case will also teach you a great deal about Chapter 13s which will advance your skills to the next level.

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