McNamee & Mahoney, LTD.

In accordance with Sections 342(b) and 527(a) of the Bankruptcy Code, this notice:

1. Describes briefly the services available from credit counseling services;

2. Describes briefly the purposes, benefits and costs of the four types of bankruptcy proceedings available, and;

3. Informs you about bankruptcy crimes and notifies you that the Attorney General may examine all information you supply in connection with a bankruptcy case. You are cautioned that bankruptcy law is complicated and not easily described. Thus, you may wish to seek the advice of an attorney to learn of your rights and responsibilities should you decide to file a petition. Court employees cannot give you legal advice.

Services Available From Credit Counseling Services

A credit counseling agency can assist you in preparing a budget, keeping track of your bills, and managing your money with certified and trained counselors. They can also assist you in making arrangements for a repayment plan with your creditors.  It is recommended that you do some research to find a reputable counseling agency to help you. A credit counseling service is generally recommended for a person who has unsecured debt and who needs help in lowering the interest rates on that debt in order to manage it.  If a person needs to reduce the amount of their debt, bankruptcy may be a better solution.  It is highly recommended that you speak to a qualified attorney or credit counseling service in order to make an informed decision regarding your particular circumstances.

The Purposes, Benefits, and Costs of Four Types of Bankruptcy Proceedings

Chapter 7

A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the debtor's nonexempt assets are gathered and sold, or liquidated, and the proceeds of such assets are used to pay creditors. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but the debtor's remaining assets will be liquidated. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property. The courts must charge a $245 case filing fee, a $46 miscellaneous administrative fee, and a $15 trustee surcharge for a Chapter 7 bankruptcy case.

Chapter 13

Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time.  Additionally, in a Chapter 13 bankruptcy individuals may be allowed to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the Chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that may protect co-signers. Finally, Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under Chapter 13 protection. The courts must charge a $235 case filing fee and a $46 miscellaneous administrative fee for a Chapter 13 bankruptcy case.

Chapter 11

Chapter 11 of the Bankruptcy Code provides (generally) for reorganization of a corporation or partnership. (A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in Chapter 11.) The courts are required to charge a $1,167 case filing fee and a $46 miscellaneous administrative fee for a Chapter 11 bankruptcy case.

Chapter 12

Chapter 12 of the Bankruptcy Code provides for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code. The courts must charge a $200 case filing fee and a $46 miscellaneous administrative fee for a Chapter 12 bankruptcy case.

The information above is attributed to the United States Courts website (http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx).

Notice Mandated By Section 527(b) Of The Bankruptcy Code

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER

If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.

The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine. Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a “trustee” and by creditors.

If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.

If you choose to file a chapter 13 case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which, if held, will be before a bankruptcy judge.

If you select another type of relief under the Bankruptcy Code other than chapter 7 or chapter 13, you will want to find out what should be done from someone familiar with that type of relief. Your bankruptcy case may also involve litigation.

You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.

Notice Mandated By Section 527(a)(2) Of The Bankruptcy Code

NOTICE OF MANDATORY DISCLOSURE TO CONSUMERS WHO CONTEMPLATE FILING BANKRUPTCY

You are notified as follows:

  1. All information that you are required to provide with the filing of your case and thereafter, while your case is pending, must be complete, accurate and truthful.
  2. All your assets and all your liabilities must be completely and accurately disclosed in the documents filed to commence your case.
  3. Some places in the bankruptcy code require you to determine and list the replacement value of an asset. When replacement value is required, it means the replacement value, established after reasonable inquiry, as of the date of the filing of your bankruptcy case, without deduction for costs of sale or marketing. With respect to property acquired for personal, family or household purposes, replacement value means the price a retail merchant would charge for "used" property of that kind considering the age and condition of the property.
  4. Before your case can be filed, it is subject to what is called "Means Testing". The Means Test was designed to determine whether or not you qualify to file a case under chapter 7 of the Bankruptcy Code, and if not, how much you need to pay your unsecured creditors in a chapter 13 case. For purposes of means test, you must state, after reasonable inquiry, your total current monthly income, the amount of all expenses as specified and allowed pursuant to section 707(b)(2) of the bankruptcy code, and if the plan is to file you in a Chapter 13 case, you must state, again after reasonable inquiry, your disposable income, as that term is defined.
  5. Information that you provide during your case may be audited pursuant to the provisions of the Bankruptcy Code. Your failure to provide complete, accurate and truthful information may result in the dismissal of your case or other sanctions, including criminal sanctions.

Notice Mandated By Section 342(b)(2) Of The Bankruptcy Code

FRAUD & CONCEALMENT PROHIBITED

If you decide to file bankruptcy, it is important that you understand the following:

  1. Some or all of the information you provide in connection with your bankruptcy will be filed with the bankruptcy court on forms or documents that you will be required to sign and declare as true under penalty of perjury.
  2. A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a bankruptcy case shall be subject to fine, imprisonment, or both.

All information you provide in connection with your bankruptcy case is subject to examination by the Attorney General.

DISCLAIMER: The information on this website is for general informational purposes only and is not, nor is it intended to be, legal advice. Use of this website does not create an attorney-client relationship between us. Contacting us through this website does not create an attorney-client relationship between us.  No attorney-client relationship is created between us until you personally meet with an attorney from the firm of McNamee & Mahoney, Ltd.