PersonalizedBankruptcyReportfor[AnswerA] Congratulations! You have taken a great step towards getting out of debt.

. Far too often, people file for bankruptcy without understanding whathappensinbankruptcyorhowbankruptcywillaffect,ornotaffect, theirdebtsandassets.Throughthispersonalizedreport,youwillgainan understandingofthebasicsofbankruptcyandwhatwillhappentoyour major debts and assets in your bankruptcy case. Bankruptcy provides great benefits but these benefits are limited depending on your unique circumstances. Whilethisreportprovidesyouwiththebasicsofwhatyouneedtoknow, bankruptcylawandyoursituationchangeconstantly.Thispersonalized report is for informational purposes only and cannot be relied upon for anythingotherthanwhatyoucangenerallyexpecttohappentoyouand yourassetsbasedonotherdebtorsinsimilarsituationstoyours. Goodluckonyourfightoutofdebtwhetheryoudecidethatbankruptcy isyourbestrouteornot!

 I. ELIGIBILITYFORBANKRUPTCY

Option1: [IfincomeislessthantheIRSminimumforstateinAnswerB] Basedonyouraverageincomeforthelastsixmonthsof[AnswerD]permonth, youhaveachoicetofileeitherachapter7bankruptcyorachapter13bankruptcy. NOTE: If your secured debts (debts backed by a pledge of property) exceed $1,081,400oryourunsecureddebts(debtsbackedsolelybyyourpromisetopay) exceed$360,475,youcannotfileachapter13bankruptcycase.Youcaneitherfile achapter7bankruptcycaseorachapter11bankruptcycase. Option2: [IfincomeisleftthantheIRSminimumforstateinAnswerB] Basedonyouraverageincomeforthelastsixmonthsof[AnswerD]permonth, yourincomeexceeds[STATE]smedianincome.Asitexceedsthemedian,youfail one part of the means test. The means test uses a standard mathematical formula to determine whether you can file for chapter 7 bankruptcy case, or, as set forth in the Bankruptcy Code, whether your filing of a chapter 7 bankruptcy casewouldbeanabuseofthebankruptcysystem. Havingfailedthefirstpartofthemeanstest,youmustthendeterminewhether youcanpassthesecondpartofthemeanstest.Youpassthesecondpartofthe meanstestifyouraggregatecurrentmonthlyincomeover5years,netofcertain statutorily allowed expenses, is more than (i) $11,725, or (ii) 25% of the of your nonpriorityunsecured debt,aslongasthatamountisatleast$7,025.Or,more simply, if your current monthly income demonstrates that you can pay your unsecuredcreditors$11,725($195.42amonth)over5yearsor$7,025($117.09a month) over 5 years and that is at least 25% of what you currently owe your unsecured creditors, then you cannot file a chapter 7 bankruptcy case. You are allowed certain, standard deductions based on the number of vehicles you operate, the number of people in your household, and your cost of living. In addition, to these standard deductions, you can also deduct the full amount of
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certainexpensessuchasyourmortgageandloanpaymentsforyourcarorother vehicle. Ifyoufailbothpartsofthemeanstest,youarepresumedtoberequiredtofilea Chapter 13 bankruptcy case and there is a presumption of abuse if you file a Chapter7bankruptcycase. However, you can defeat this presumption of abuse that requires you to file a chapter 13 bankruptcy case by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless you can overcome the presumption of abuse and you have filed a chapter 7 bankruptcy case, your bankruptcy case will generally be converted to chapter 13 (if you consent)orthecasewillbedismissed.Abankruptcylawyeristhebestpersonto assistyouindefeatingthepresumptionbasedonspecialcircumstances. EXCEPTIONS: IF you are a veteran, and you are disabled, and your indebtedness occurred primarily during a period in which you were: on active duty, or performing a homelanddefenseactivity,youareexemptfromthemeanstest. IFyouareamemberofareservecomponentoftheArmedForcesandmembersof theNationalGuardandyouwerecalledtoactivedutyafterSeptember11,2001, foraperiodofatleast90daysoryouhaveperformedhomelanddefenseactivity foraperiodofatleast90days,youareexcludedfromallformsofmeanstesting during the time of active duty or homeland defense activity and for 540 days thereafter. NOTE: If your secured debts (debts backed by a pledge of property) exceed $1,081,400oryourunsecureddebts(debtsbackedsolelybyyourpromisetopay) exceed$360,475,youcannotfileachapter13bankruptcycase.Youwillhaveto file a chapter 11 bankruptcy case unless you can defeat the presumption as set forthaboveandcouldtheneitherfileachapter7bankruptcycaseorachapter11 bankruptcycase.

II.

BANKRUPTCYBASICS

Bankruptcystemsfromasystemoffederallawsandrulesofprocedurewhichthe UnitedStatesCongresshasenactedpursuanttoitspowersundertheConstitution of the United States. United States Bankruptcy Courts in the 94 jurisdictions whereafederalcourtislocatedadministerbankruptcycases. Bankruptcycasescannotbecommencedinstatecourtsbutmustbecommenced byfilingabankruptcypetitionwiththeclerkofthebankruptcycourt.Bankruptcy isalegalprocedurewhichallowsindividualsandbusinessestoobtainrelieffrom debts to obtain a fresh start in their finances and remedy financial injustices. If you live in or have property in the United States, you can file a bankruptcy petition. Once you commence your bankruptcy case (done by the filing of a petition with the bankruptcy court), you have a breathing spell from efforts by creditors to collect debts. When the bankruptcy court enters a discharge order upon successful completion of your bankruptcy case, you are released from your obligation to repay debts. The discharge order has certain exceptions and restrictions. OverviewoftheProcess Bankruptcy provides numerous protections and benefits but follows well establishedrulesandlawsthatdictatewhathappenstoyouandyourproperty. TheAutomaticStay The moment you commence your bankruptcy case, an order of the bankruptcy court called the automatic stay goes into effect. The automatic stay requires cessation of all collection actions, lawsuits in which you are a defendant, foreclosures,wagegarnishments,evictions,demandsforrepaymentofdebts,and phonecallstocollectdebts.Ifacreditortakesactioninviolationofthestay,you

may recover actual and punitive damages as well as attorneys fees from the creditor. Theautomaticstayisnotunlimited.Congresshasdeclared28exceptionstothe automatic stay, including fines from the prosecution of criminal actions and the collectionofalimonyandchildsupport.Thebankruptcycourtmaygrantacreditor relief from the automatic stay upon the filing of a motion in which the creditor gives the bankruptcy court good cause to lift the automatic stay as to its debt. Otherlimitationsontheautomaticstayarise,especiallywherethedebtorhashad one or more prior bankruptcy cases which were dismissed within a year of the currentfiling.Therearespecialprovisionsthatapplytoevictioncaseswhichgive landlordsanddebtorsspecificrightsandobligations. Actsundertakenbyacreditorinviolationoftheautomaticstayarenotonlyvoid, butmayexposetheviolatortomonetarysanctions. PropertyoftheEstateandExemptions Whenyoucommenceyourbankruptcycase,allyourlegalandequitableinterests, including interests in real and personal property, become property of the bankruptcyestate.Thetrusteeofthebankruptcycasewillthenadministerallof thepropertyforthebenefitoftheyourcreditors. Bankruptcy law entitles you to claim certain property as exempt. You keep exemptyourexemptpropertyanditstaysoutofthehandsofhisorhercreditors. Some state law exemptions have been the law for hundreds of years and are outdated, such as exemptions for church pews, the family Bible, two swine and fourtonsofhay. Propertywhichyouaretypicallyallowedtoexemptincludes: Someoralloftheequityinadebtorspersonalresidence Someorallofthevalueinavehicle Adebtorstoolsofthetrade Householdgoods

Jewelry Lifeinsurance Personalinjuryclaims

The list of exemptions available under the federal exemption scheme is more currentandprovidescategoriesofexemptpropertywithvaluesthatareadjusted forthecostoflivingeverythreeyears.Intheeventacreditorhasacourtordered lien which impairs an exemption, you may request that the creditors lien be avoided and if so ordered, this judicial lien will be released. Your specific exemptionsarelistedcompletelyinfullinSectionIV. TheDischarge The United States Supreme Court has emphasized that bankruptcy gives to the honest but unfortunate debtora new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. The discharge order of the bankruptcy court releases you from personal liability fordebts.Dischargeprovidesapermanentinjunctionpreventingcollectionofall ofthedebtstowhichitapplies.Afteradischarge,youenjoyyourproperty(other thanpropertyoftheestate)freefromtheclaimsofcreditors.Thebestexampleof propertythatisfreefromthecreditorsafterdischargeisfutureearnings. However,thedischargedoesnotapplytoallofyourdebts.Automaticexceptions setforthintheBankruptcyCode,suchasmosttaxes,alimony,spousalandchild support,criminalrestitutionandfines,andstudentloanswherethedebtordoes notproverepaymentisanunduehardshipwillnotbedischarged(theentirelistis setforthbelow).Moreover,acreditorcanbringaproceedingwithinabankruptcy case(knownasanadversaryproceeding)todeterminethatadebtshouldbenot bedischargedifthedebtwasincurredbyfraud,willfulandmaliciousinjury,and otherlikecauses.Thebankruptcycourtmaydetermineafterlitigationthatadebt will not be discharged or is nondischargeable. If you commit certain offenses, suchasnotdisclosingallofyourassets,ormakingafalseoathinyourbankruptcy case,thebankruptcycourtmaydenydischargeofallofyourdebts.
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There are six types of bankruptcy relief and each type is called a chapter for its sectioninthebankruptcylegislation.Thetwotypesmostcommonforindividuals arechapter7andchapter13.

 A. Chapter7BankruptcyCases

A Chapter 7 bankruptcy case is a liquidation of both your debts and your assets under the supervision of a trustee. Chapter 7 cases are, more often than not, routine and the vast majority of them are discharged or released and administratively closed without the trustee liquidating any assets or distributing anyassetstocreditors.InamajorityofChapter7cases,youneverappearinfront of the bankruptcy judge but only attend a meeting of creditors conducted by a trustee. When you file a Chapter 7 case, your bankruptcy case is controlled by a trustee appointed by the United States Trustee Office (a division of the Department of Justice). In a Chapter 7 case, the trustee investigates your assets, determines whether to object to any exemptions you have claimed (state and federal laws protectcertainproperty),andhastheabilitytosellanyassetsthatarenotexempt and distribute the proceeds of the sales to creditors. The trustee also has the abilitytoobjecttocreditorsclaims.YoumustqualifyforChapter7relief. To qualify for relief in Chapter 7, you must meet the eligibility criteria by: obtaining prepetition credit counseling briefing, and completing a means test to determine whether your income and expenses are above or below the median incomeascomparedtootherindividualsinthestate.Youmustfileascheduleof assets,includingclaimsofyourexemptionsandliabilitiesandmustpaythefiling fee unless excused by the bankruptcy court. Unless a creditor, the trustee or anotherinterestedpartyfilesanobjection,thecourtwillenteradischarge.The discharge of a debtor in a Chapter 7 case may not affect certain debts like your mortgage or auto loan because you have pledged your property to obtain the debt. You can enter into reaffirmation agreements for the purpose of retaining your securedcollateralsuchasyourhouseorcar(moreonthisoptionbelow).

Youwillnotreceiveadischargeofdebtsexceptedfromthedischargeunderthe Code,orifthebankruptcycourtcarvesoutaparticulardebtfromyourdischarge after litigation. Moreover you can be denied a bankruptcy discharge if you are found to have lied to the trustee or court, fraudulently transferred property, or destroyed records. In addition, the discharge can be revoked if it was obtained throughfraud.

B.

Chapter13BankruptcyCases

Chapter 13 of the Bankruptcy Code is entitled Debt Adjustments for Individuals withRegularIncome.UnlikeinaChapter7case,inaChapter13bankruptcycase you file a plan under which you propose to pay all or a percentageof yourdebt over a period of three to five years depending on the your income. People in defaultontheirmortgagesorwhohavenonexemptassetsandneedtopaytheir debtsovertime,aretheprimarydebtorsinChapter13bankruptcycase. AdvantagesandDisadvantagesofChapter13BankruptcyCases Several important reasons may persuade you to choose Chapter 13. Most importantly, in chapter 13, you can retain all your property while performing undertheChapter13plan.Thus,ifyouhavepropertynotcoveredbyexemptions understateorfederallaw(nonexemptproperty)thatyouwanttoretain,Chapter 13 may be the best chapter for you. A selfemployed individual who operates a nonincorporatedbusinessmaycontinuetooperatethebusinessandincludethe businesss debts in the Chapter 13 plan. Moreover, since defaults in home mortgages can be paid over the term of the plan, you may be able to save your home from foreclosure in a Chapter 13. You can reduce certain mortgages and lienstothevalueoftheproperty(suchasonasecondhomeorrentalproperty) andpaythemoverthetermofyourChapter13plan. Judicial liens on real estate which impair your exemptions (such as your homestead exemption) can be avoided and recharacterized to unsecured claims. Furthermore,youcanpayprepetitiontaxclaimswithlegalpriorityovertheterm of the plan. One of the most significant advantages of Chapter 13 is that, in additiontotheautomaticstayforyouasthedebtor,acodebtorstayextendsto individualswhoarealsoliablewithyouonconsumerdebtsthroughoutthetermof thechapter13plan. SomedisadvantagesexistinaChapter13plan.First,duringtheyearsthatyouare paying debts under the plan, you are under the jurisdiction of the bankruptcy
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court.Notonlydoesthebankruptcycourtscrutinizeyourfinanciallife,butyour financesaresubjecttomonitoringbythechapter13trusteeandcreditors.Ifyou fail to make a payment under the plan, the trustee and creditors can seek to dismissyourChapter13caseresultinginthelostopportunityforadischarge. In addition, if during the term of the plan your income or assets increase, those parties can request that the plan be modified to increase payments. Moreover, Chapter 13 cases are more costly than chapter 7. You must pay a trustees commission approximately 10 percent of the plan disbursements. Your attorneys fees are higher for Chapter 13 cases than Chapter 7 cases, usually ranging from $ 2,500 to $ 3,500 plus filing fees, depending on the jurisdiction. AttorneysfeesforaChapter7rangebetween$1,000and$1,500. Chapter13 ThePlanandPlanConfirmation AsaChapter13debtor,youmustfileaplanthatproperlytreatsthedebtsowed by the debtor according to the legal priority of creditors claims. Priority claims, such as taxes, must be paid in full over the term of the plan. A plan can cure a defaultinamortgageorlease,bypayingtheamountinarrearsovertheplanterm, while maintaining regular payments. Although home mortgages cannot be modifiedunderaChapter13plan,andvehiclepurchaseloansobtainedwithin910 dayspriortocommencementofthecasemustalsobepaidinfull,sometypesof secured claims can be modified and the debtor need only pay the value of the collateral,plusmarketinterestrateoverthetermoftheplan. Theplanneednotpayunsecuredclaimsinfullaslongitprovidesthatthedebtor will pay all projected disposable income over an applicable commitment period, and as long as unsecured creditors receive at least as much under the planastheywouldreceiveunderchapter7.Inchapter13,disposableincomeis definedasincome(otherthanchildsupportpaymentsreceivedbythedebtor)less amounts reasonably necessary for the maintenance or support of the debtor or dependents and less charitable contributions up to 15% of the debtors gross

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income. If you operate a business, the definition of disposable income excludes thoseamountswhicharenecessaryforordinaryoperatingexpenses. Theapplicablecommitmentperiod,referstotherequireddurationoftheplan, and it depends on your current monthly income. The applicable commitment periodmustbethreeyearsifcurrentmonthlyincomeislessthanthestatemedian for a family of the same size and five years if the current monthly income is greaterthanafamilyofthesamesize.Theplancanbeaperiodshorterthanthe applicable commitment period if the debtor proposes to pay unsecured debts in full. ThetrusteeandcreditorshavetherighttoobjecttoyourChapter13plan. The discharge in your Chapter 13 bankruptcy case releases you from all debts provided for by the plan or disallowed, subject to certain exceptions. The discharge provides an injunction that prevents creditors provided for in the Chapter13planfrompursuingyouonthedischargedobligations.Exceptionsfrom dischargeincludecertainlongtermobligations(suchasahomemortgage),debts foralimonyorchildsupport,certaintaxes,debtsformostgovernmentfundedor guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtorsconvictionofacrime.

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III. FLOWCHARTS
Thetwoattachedchartsdemonstratethestepsthatyoucanexpecttooccurina typicalchapter7bankruptcycaseandatypicalchapter13bankruptcycase.

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IV. EXEMPTIONSAVAILABLETOYOU
As discussed briefly above, exemptions are assets that are not included in your bankruptcy estate and therefore are not available to creditors to satisfy their debts. Bankruptcy law allowed each state to choose whether to make federal exemptionssetforthintheBankruptcyCodeavailabletoresidentsinitsstatein additiontoitsstatelawexemptionsortooptoutandallowitsresidentstoonly choosestatelawexemptions.Besureyoudoublecheckoraskanattorneyabout your state and bankruptcy law procedures to know when and how you have to claimyourexemptionsinorderforthemtobevalidinyourbankruptcycase. [IfAnswerBisanystateorterritorybesidesArkansas,Connecticut,theDistrictof Columbia,Hawaii,Massachusetts,Michigan,Minnesota,NewJersey,NewMexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin] [Answer B] has opted out of the federal exemptions under the BankruptcyCodeandallowsyoutochooseonlytheexemptionsunder[AnswerB] statelaw. Theexemptionsavailabletoyouunder[AnswerB]statelawareasfollows:[Insert theExemptionsavailableforthestatechoseninAnswerB] [IfAnswerBisCalifornia]AlthoughCaliforniahasoptedoutanddoesnotallow you to choose between state and federal exemptions, California allows you to choosebetweentodifferentsetsofexemptionsunderitsstatelaws. TheexemptionsavailabletoyouunderCaliforniastatelawareasfollows:[Insert theExemptionsavailableforthestatechoseninAnswerB] Theexemptions availabletoyouunderthealternativesetofCaliforniastatelaw exemptionsareasfollows:[InserttheFederalExemptions] [If Answer B is Arkansas, Connecticut, The District of Columbia, Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin]
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[AnswerB]hasnotoptedoutofthefederalexemptionsundertheBankruptcy Codeandallowsyoutochooseeithertheexemptionsunder[AnswerB]statelaw ortheexemptionsunderfederalbankruptcylaw. The exemptions available to you under [Answer B] state law are as follows: [InserttheExemptionsavailableforthestatechoseninAnswerB] The exemptions available to you under federal bankruptcy law are as follows: [InserttheFederalExemptions]

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V.

YOURDEBTS

In bankruptcy, debts are divided into four categories: secured, priority, administrative,andgeneralunsecureddebts. 1) SecuredDebt:Asecureddebtisadebtthatcollateralizedbythe debtors property. A creditor whose debt is secured has a right to take its collateral to satisfy the debt. For example, most people who buy new cars on credit give the lender a security interest (or lien) in the car. The debt is securedbythecarandthelendercantake(repossess)thecariftheborrower failstomakepaymentsontheloan. 2) Unsecured Debt: A debt for which the creditor has no lien with whichtosatisfythedebt.Thedebtissaidtobegenerallyunsecurediftheclaim is also not entitled to any priority of payment under the Bankruptcy Code. For example,theamountowedonacreditcard. 3) Priority Debt: A priority debt is a debt entitled to priority in payment,aheadofmostotherdebts,inabankruptcycase.Examplesofpriority debts are some taxes, wage claims of employees, and alimony, maintenance or supportofaspouse,formerspouse,orchild. 4) Administrative Debt: An administrative debt is a priority debt createdwhensomeoneprovidesgoodsorservicestoyourbankruptcyestate(this canhappenonlyafterthebankruptcycaseisfiled).Examplesofanadministrative debtarethefeesgeneratedbythetrusteeinrepresentingthebankruptcyestate.

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VI. NONDISCHARGEABLEDEBTS
Nondischargeable debts will not be affected by a bankruptcy filing and you will stillhavetopaytheminfull. [Answer B checked off] You have indicated that you have nondischargeable debts. You must pay particular attention to your nondischargeable debts and how they are affecting you financially. If your nondischargeable debts are the root of your financial problems, filing a bankruptcy case may not be a good alternativeforyou.Still,evenwhenyouhavenondischargeabledebts,youshould evaluateyourentirefinancialpictureandthisentirereportandweighallthepros andconsofabankruptcyfiling.Thefollowingisalistofthemostcommonnon dischargeabledebts. Domestic Support Obligations (alimony, maintenance and child support); Certain types of taxes owed within 3 years of your bankruptcy filing; Debts incurred by the use of false financial statements or other falsepretenses; Courtfinesandpenalties,includingcriminalfinesandrestitution tocourtoravictimimposedincriminaltypeproceeding; Cash advances on credit cards in last 60 days; credit card purchasesover$1,075forluxurygoodsorservicesinlast60days. Debts arising from a judgment incurred from a DWI/DUI conviction;

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Damages arising from willful or malicious injury to property or persons; Federally insured student loans, unless you can show undue hardship; Debtsarisingfromfraudorembezzlementorfromthemisuseof funds when you were acting as a fiduciary or caretaker of other peoplesfunds; CreditcardchargesforpaymentoftaxestotheIRS; Debtsfrommaritalsettlementagreementordivorcedecree; debtsowedtocertaintaxadvantagedretirementplans, debtsforcertaincondominiumorcooperativehousingfees Debts you couldnt discharge in a previous bankruptcy that was dismissedduetofraudormalfeasance.

[Answer B not checked off] You have indicated that you do not have non dischargeable debts. This means that all of your debts are capable of being dischargedinyourbankruptcycase,butexceptionsmaystillexistsuchassecured loansandprioritydebts.Doublecheckthefollowinglistofthemostcommonnon dischargeabledebtstoensureyouhavenonondischargeabledebts. Domestic Support Obligations (alimony, maintenance and child support); Certain types of taxes owed within 3 years of your bankruptcy filing; Debts incurred by the use of false financial statements or other falsepretenses;
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Courtfinesandpenalties,includingcriminalfinesandrestitution tocourtoravictimimposedincriminaltypeproceeding; Cash advances on credit cards in last 60 days; credit card purchasesover$1,075forluxurygoodsorservicesinlast60days. Debts arising from a judgment incurred from a DWI/DUI conviction; Damages arising from willful or malicious injury to property or persons; Federally insured student loans, unless you can show undue hardship; Debtsarisingfromfraudorembezzlementorfromthemisuseof funds when you were acting as a fiduciary or caretaker of other peoplesfunds; CreditcardchargesforpaymentoftaxestotheIRS; Debtsfrommaritalsettlementagreementordivorcedecree; debtsowedtocertaintaxadvantagedretirementplans, debtsforcertaincondominiumorcooperativehousingfees Debts you couldnt discharge in a previous bankruptcy that was dismissedduetofraudormalfeasance.

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VII. YOURHOME
Assumingthatyouwanttokeepyourhome,bankruptcyshouldonlybeusedasa lastresort. A. Ifyouronlyfinancialproblemisyourmortgage,youshouldlikelylook to modify your mortgage to make it more affordable through your lender and someofthegovernmentprograms.Youcanenterintoamortgagemodification program, including HAMP (Home Affordable Modification Program) and others established by the Obama administration, then you may be able to reduce the principal,theinterestrateorbothandthenbringyourmonthlymortgagepayment downtoamoreaffordablelevel.Thisisthebestresultifyouareanunderwater homeowner. Iffinancialproblemswithyourhomearecoupledwithoverallfinancialproblems and mortgage modification is not working or your lender will not agree to work withyou,youcouldconsidereitheraChapter7oraChapter13bankruptcycase. B. YouwillonlybeabletokeepyourhomeinaChapter7bankruptcycase if you are current on your mortgage, continue to make payments as contracted andenteredintoaworkoutorreaffirmationagreementwithyourlender.Ifyou can continue tomake payments in a Chapter 7 bankruptcy case, you can reduce anysecondmortgagesorhomeequitylinesthatarenotsecured(i.e.,alltheequity of the house is eaten up by the first mortgage) into general unsecured claim for which personal liability can be discharged inthe Chapter 7 bankruptcy case with otherunsecureddebtsforaverysmallpercentageofthedebtorfornothingatall. However, the lien on the house remains so that when the house is sold, the second mortgagee or home equity line lender could look for their payoff to dischargeitsmortgage. In a Chapter 13 bankruptcy case, you can retain your home by paying the mortgage by its terms after filing your bankruptcy case. The advantage on a Chapter 13 bankruptcy case is that you have the opportunity to pay off any
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defaultsonyourmortgageover3to5yearsthroughyourchapter13bankruptcy plan. You also have the ability to stripoff any second mortgages and home equitylinesthatarecompletelyunsecured,providedyoudonotdefaultduringthe Chapter13plan. C. While bankruptcy generally relieves some pressure and will give you time to make some decisions, bankruptcy may not be the best option for a homeownerandshouldonlybeconsideredasalastoption. D. Ataminimum,bankruptcywillprovideyousomebreathingroomand temporarilystallaforeclosuresale. In a Chapter 7 bankruptcy case, the automatic stay temporarily prevents a foreclosure process from continuing. Your mortgage lender can continue the foreclosureprocesswiththepermissionofthecourtbutthatusuallytakesatleast 60days.Youcanusethistimetoworkoutaloanmodification. InaChapter13bankruptcycase,theautomaticstaylikewisetemporarilyprevents your lender from continuing a foreclosure process so that you can regroup and workoutawaytokeepyourhome.Inaddition,youcancureadefaultorpayoff themortgageininstallmentspaymentsovertimethroughachapter13plan. In all bankruptcy cases, you may be able to raise defenses to your mortgage lendersclaimsabouthowmuchyouowe.

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VIII. YOURCAR,TRUCK,RV,ORBOAT
Because of the automatic stay, filing a bankruptcy case stops your lender from seizingyourvehicle.Bankruptcy haltsall attemptstotake anyofyourproperty, evenpropertyonwhichyourlendershaveliens.Moreover,ifyourcarhasbeen repossessedbutnotsold,bankruptcymayhelpyougetyourcarback.Bankruptcy alsoprovideswaystokeepyourcarforthelongterm. Chapter7BankruptcyCase At the beginning of your Chapter 7 bankruptcy case, you must file a document called aStatement of Intention. In this Statement, you must tell the courtwhat youplantodowithanysecuredcollateralsuchasyourcar. In a Chapter 7 bankruptcy case, you can redeem your vehicle, reaffirm your debt,orsurrenderthevehicle.Afourthoption,todonothingandkeeppayingthe loanmayalsoexistbuttheexistenceisquestionableanddependsonobtainingthe consent of the lender. If you do not act in accordance with the Statement, the lenderwhoholdsthesecurityinterestonthatcollateralwillnotbebarredbythe automatic stay of picking up that collateral after 30 days after the Section 341 creditorsmeeting. Moreover,bankruptcyalsoprovidesyoutheabilitytochallengeyourautodebtor arepossessiontoensurethattheywerelawfulinformandexecution. Redemption Toredeemyourcarinbankruptcy,youpayyourlenderonlywhatthecarisworth, not what you owe on your loan. Redemption in bankruptcy can save you considerable amounts from redemption outside of bankruptcy. Outside of bankruptcy, to redeem you have to pay your entire loan, including all costs and fees in order to redeem. In bankruptcy, you redeem at the replacement value withoutdeductingforthecostsofsale.Ifyourcarisworth$10,000butyoustill

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owe $15,000 on your loan, you only have to pay $10,000 to redeem the car in bankruptcy. ExampleVehicleRedemption Ifyouowneda2007F150,thevehicleredemptionmightbeasfollows: KellyBlueBookValue: OutstandingBalanceonLoan: YoupaytoRedeemOutsideofBankruptcy: YoupayinfulltoRedeemduringBankruptcy: You must pay the entire redemption amount in cash. Some creditors let you redeemininstallmentpaymentsbutthebankruptcycourtcannotrequirealender toacceptinstallmentpayments.Also,somelendersmayofferyoualoanforthe presentvalueofyourcarsoyoucanredeeminyourbankruptcycase.Theseare called redemption loans. You may find this new loan with a much lower principalthatwhatyouoweveryappealing,especiallyifyoucanvalueyourcarat averydepressedlevelandmaybeabletorefinanceagaininthefuture.However, bewareofinterestrateandfeesincludedintheredemptionloan. Reaffirmation When you enter into a reaffirmation agreement, you agree to repay a debt that wouldotherwisebedischargedinyourbankruptcycase.Yourpersonalliabilityon yourautoloanwouldnormallybedischargedinbankruptcybutyourlenderwould continuetohavetherighttorepossess.Youwouldreaffirmanautoloaninorder tokeepacarinwhichalenderhasasecurityinterest. You must meet certain requirements to enter into a reaffirmation agreement. First, you reaffirmation must be effective under nonbankruptcy law and the creditor must make numerous disclosures of the costs of reaffirmation. Second, youmustenterintothereaffirmationagreementbeforeyoureceiveadischargein your bankruptcy case. Inaddition, the bankruptcy court willoften approve your
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$12,000 $17,000 $17,000 $12,000

reaffirmationonlyifyouappearbeforethebankruptcycourtforahearing.Atthis time, you will be told that no discharge debt, such as your auto loan, must be reaffirmed. In addition, the bankruptcy judge will tell you the consequences of entering into a reaffirmation agreement, including repossession and a deficiency judgmentifyoudefault. Because bankruptcy law seeks to protect lenders from pressuring debtors into a reaffirmationofanautoloan,reaffirmationrequirementsinclude: Anagreementbeexecutedbeforedischarge; Thedebtorsrighttorescindfor60days; Lendersprovidespecificdisclosures; Anagreementbefiledwiththebankruptcycourt; Thatthedebtorappearatahearinginfrontofabankruptcyjudge ifnotrepresentedbyalawyer; Alawyerssignatureifrepresentedbyalawyer.

Make sure that you can make the monthly payments because if you breach an approvedreaffirmationagreement,youwillstillowetheentiredebt,includingany deficiencyafterthesaleofthevehicle,notwithstandingthebankruptcydischarge. If you have an attorney your attorney must file an affidavit stating that your reaffirmation is voluntary and does not impose an undue hardship on you. You must disclose your income and expenses reflecting your ability to pay the reaffirmed debt, except if the lender is a credit union. If you are without an attorney,thebankruptcycourtmustevaluatewhethertheagreementwillimpose unduehardshiponyouandthattheagreementisinyourbestinterests,andthe courtwillnotapprovetheagreementifitisnotinyourinterest. Bankruptcycourtsaregenerallyreluctanttoallowyoutoenterintoareaffirmation agreementwhenyouwanttoreaffirminordertokeepdrivingaluxurycar.Also they hesitate to allow you to enter into reaffirmation agreement if you seek to
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protect the guarantee of a friend or relative. Even if you meet all the requirementsofareaffirmationagreement,yougeta60daycoolingoffperiodin whichyouarefreetorescindthereaffirmation. Consider all alternatives before reaffirming a debt such as an auto loan and seriouslyconsidersellingyourcarandreplacingitwithalessexpensiveusedcar beforeyouenterintoareaffirmationagreement. TreatmentofVehicleLoansinChapter13 InaChapter13case,yourbestbetistopayoffyourcarinmonthlypaymentsin3 5 years through your Chapter 13 plan. You may be able to reduce your interest rateintheplanandpotentiallyreducewhatyouowetothecurrentvalueofthe carifyourloanisnotapurchasemoneysecurityinterestonacarpurchasedwithin 910daysbeforethebankruptcy. For purchase money security interests on vehicle purchases less than 910 days beforebankruptcy,thevehicleloanmustbepaidinfulleitheroverthelifeofthe plan, or according to the terms of the loan agreement. You should determine whichoptionpresentsthemostaffordablemethodtopayyourvehicledebtsand drafttheChapter13planaccordingly. VehicleLeasesinBankruptcy Beforeyoutakeanyactionsinbankruptcyregardingyourvehiclelease,youmust makesurethatyouhaveatrueleaseratherthenarenttoowntransaction. You likely entered into a true lease if your financing entity actually owns the vehicle and at the end of the term, you have nothing. You have to return the vehicleandyoucannotsellthevehicle.Underatrueleaseagreement,theterms of the lease contract govern the rights and obligations between you and the lender. Typically your vehicle lessor has the right to repossess the car for any default, such as nonpayment of an installment or lack of insurance, the same mannerasasecuredpartywould.

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Inabankruptcycase,youcanassumethevehicleleasemeaningyoucanagreeto continue with the lease and cure defaults or reject the lease meaning that you cansurrenderthevehicleandhavenofurtherobligationtopayleaseinstallments. Ifyoudonotexpresslyrejectorassumeyourvehicleleasewithin60daysoffiling in a Chapter 7 bankruptcy case, the lease is rejected by operation of law. Your vehicle lessor is entitled to repossess the vehiclewithout seeking relief from the automatic stay. In bankruptcy cases in all chapters, you must indicate in your initialbankruptcydocumentsyourintenttoassumeyourvehiclelease.

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IX. CHECKLISTFORFILINGYOURBANKRUPTCYCASE
CreditCounselingBriefing

Beforefilingabankruptcypetitionunderanychapteryoumustobtainabriefingby a credit counseling agency approved by the United States trustee or the BankruptcyAdministrator.Thebriefingmustbeobtainedwithin180daysbefore commencement of your case, and a certificate of proof of completion must be filedwiththecourt.Thecostofthebriefingisabout$50,anditcanbecompleted over the internet, by telephone, or in person. The bankruptcy court can excuse you from the requirement if you are physically or mentally disabled or on active militaryduty.Also,thecourtcanapproveadelayinobtainingthebriefingifthere are exigent circumstances preventing you from obtaining the counseling before filingthepetitionbutthesearedifficulttoobtain. FilingFees

Bankruptcy petitions must be accompanied by a filing and administrative fee payabletothecourt.Currentlythefeesforbankruptcycases:$299forChapter7 cases;$279forChapter13and12cases,and$1,039forChapter11cases.Filing andadministrativefeesareinadditiontoattorneyfeesandcounselingfees.You may file an application to pay the filing fees in installments, and courts usually allow payment over time, in four to five segments. In a Chapter 7 case, the bankruptcy court may approve a waiver of the filing fee upon application that conformstoOfficialForm3Bandproofthatyourincomeislessthan150percent oftheofficialpovertylinebasedonthesizeofyourfamily. FilingDocuments

Youmustfilecertaindocuments.Youcommenceyourbankruptcycase.Ifthese requireddocumentsarenotfiled,thecourtwilldismissthecaseandyouwilllose thebenefitsofbankruptcyprotection. Tocommenceacase,thedebtormustfilethefollowingdocuments:

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OfficialForm1: thevoluntarypetition OfficialForm21: he statement of social security number. The social t security statement must contain your full number. Pursuant to the privacy policy of the United States Courts, the full social security number does not become a public record, and only creditors will receivethefullnumbertoenablethemtoidentifythedebtorintheir records. Alistofcreditorsnamesandaddresses: The list of creditors, often known as the mailing matrix, is not an official form but is often the subjectofalocalform. Acertificatefromanapprovedcreditcounselingagencythatthedebtor hadtherequiredbriefing Atthesametimeorshortlyafteracasebegins,youmustfile: OfficialForm7: Schedulesofassets,liabilities,incomeandexpenses OfficialForm7,cont:Statementoffinancialaffairs Form22A,B,orC: themeanstestcalculation(dependingonyour bankruptcyChapter). FormB203:theattorneysdisclosureofcompensation Chapter 7 case only Official Form 8, a statement of intention with respecttosecureddebts. Chapter13caseonlyChapter13plan.Noofficialformexistsforthe chapter13plan,butmanyjurisdictionshaveaformofchapter13plan thatisrequiredorsuggested.AmodelChapter13bankruptcyplanis attachedbelow.

Many of the required documents must be signed by you under the pain and penaltyofperjury.Ifyoumakefalsestatementsontheforms,oromitinformation
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that makes the forms misleading, the consequences may be severe, including denial of your bankruptcy discharge or criminal prosecution. Make sure that all forms are accurate and complete and if mistakes are discovered, the documents should be promptly amended. These filing documents are usually due within15 daysafterthepetitiondate.Ifthesedocumentsarenotfiled,thecourtwillissue anordertofilethedocuments.Youmayobtainanextensionoftimeforfilingthe documents, but you must request before the deadline. Courts will dismiss your bankruptcycaseifyoudonotfilethedocumentsontime. PaymentAdvicesorProofofIncome

Youmustfilecopiesofallpaymentadviceswiththebankruptcycourtorsubmit themtothetrustee.Paymentadvicesareevidenceofsalaryorincomeearned withinsixtydaysbeforethecommencementofthecase.Somecourtsrequirethat the documents be filed with the court, whereas others require that they be submitted to the trustee before the meeting of creditors (the Section 341 meeting). TaxReturns

Youmustproducetaxreturnstothetrustee,andtocreditorsuponrequest.The federal income tax return or an IRS tax transcript for the most recent tax year beforethefilingofyourpetitionmustbegiventothetrusteewithinaweekbefore themeetingofcreditors.However,ifyouwerenotrequiredtofileareturn,for examplebecauseyouhadinsufficientgross incomeundertheIRSrules,areturn neednotbeprovided.Ifyoudonothaveareturn,atranscriptcanbeobtained fromtheIRSandsubmittedtothetrusteeinsteadofareturn.Ifyoufailtoprovide a tax return or transcript to the IRS, the bankruptcy court may dismiss the bankruptcycase. Donthaveyourmostrecenttaxreturn?Youcaneasilygetyourfederaltaxreturn transcript for free by calling 18008291040, or by mailing or faxing IRS Form 4506TtotheIRS.Seewww.irs.govformoreinformation. MeetingoftheCreditors
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Afteryourbankruptcycaseiscommenced,youwillreceivenoticeofthemeeting ofcreditorswhichiscommonlyreferredtoastheSection341meeting,afterthe BankruptcyCodesectionrequiringthemeeting.Youmustattendthismeetingin person.Youwillbeadministeredanoathbythetrusteeandthetrusteewillask youquestionsaboutyourassets,liabilities,income,andexpensesunderoathand the proceeding is recorded. The purpose of the trustees questions are to ascertainwhetheryouhavemadeacompleteandaccuratelistofyourassetsand liabilitiesandwhetheryouhaveanyassetsthatcanbeliquidatedfordistribution tocreditors. The Section 341 meeting is recorded and is held in a public place, usually with otherdebtorspresent.Creditorsmayattendthemeeting.However,creditorsare notrequiredtoattendandusuallydonotattend.Thetrusteewillusuallyexamine youforfivetotenminutes,butmaycontinuethemeetingonanotherdateifthere is insufficient time and the examination is not concluded. You are required to bring to the meeting a picture form of identification, proof of the social security number,recentbankaccountstatements,andproofofcurrentincome,suchasa pay stub. Some trustees will send you a letter requesting that additional documents be brought to the Section 341 meeting. It is in your best interest to satisfyallofthetrusteesrequeststothebestofyourability.Ifyoudonotspeak English,aninterpretermaybeprovidedfortheSection341meeting. BankruptcyCourt

Most debtors never see the inside of a bankruptcy courtroom. The Section 341 meetingisusuallytheonlyeventthatyouwillhavetoattendinperson. PersonalFinancialManagementCourse

You must complete a personal financial management course after the commencement of your bankruptcy case and file with the court a certificate of completionofthecourse.Thecoursemustbegivenbyaninstructorapprovedby the United States trustee program. In a Chapter 7 case, the certificate must be filedwithin45daysaftertheSection341meeting,andinaChapter13case,bythe lastplanpayment.Thecostoftheinstructionvaries,butgenerallydoesnotcost
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morethan$100.Youmayaskthecourtforawaiverofthecourserequirementon thegroundsthatyouarementallyorphysicallydisabled,orareonactivemilitary duty. BankruptcyDischarge

Once you have performed your required duties, your bankruptcy discharge will routinely enter unless a creditor or the trustee files an adversary proceeding againstyouseekingtoexemptadebtfromdischargeordenyingyourbankruptcy discharge. LegalAdvice

Youmaybeaskingwhetheryoushouldfilethebankruptcycasewithorwithoutan attorney.Therulesandstandardsyoumustadheretoarethesamewhetheryou have a lawyer or not. You will have to comply with the requirements of the BankruptcyCodeandtheRules.Youmustproperlyfileyourbankruptcycaseand handleitproperlythroughoutthecase. Bankruptcyiscomplicated.Understandingbankruptcylawandbankruptcyrulesis often beyond the ability of a person not educated in the law and even many lawyerswhodonotregularlypracticebankruptcylaw.Thelegalrightsavailableto youunderyourpersonalsituationwillvary.Theconsequencesofmakingmistakes inabankruptcycasecanbedrastic. PayingforanAttorney

Ironically, most debtors need to save money to file a bankruptcy case with a lawyer. Attorneys generally charge an upfront cash fee or a combination of an upfront fee with your balance to be paid over time. Remember that you must alsopayafilingfeewithyourbankruptcypetitionunlessthecourtwaivesthefee or allows it to be paid in installments. If you simply can not pay, pro bono programs and agencies provide free legal services to debtors. Lawyers have a professionaldutytoprovidelegalservicestothosewhoareunabletopay. ProfessionalHelp?
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Whenanyoneisplaguedbyfinancialtroubles,heorsheisnotalwaysinthestate of mind to make the best decisions about their financial condition. Whether or not you plan on working with an attorney, you should likely seek advice from a competent professional about whether or not to file for bankruptcy. Consumer bankruptcylawyerswilloftenprovideaconsultationtoprospectiveclientsforlittle ornofee.Seekaconsultationbeforeyouembarkonabankruptcycasetotryand seeiftherearelessdrasticalternativesthatcouldworkforyou. AssetforthinthisGuide,therearemanyreasonstostayoutofabankruptcycase and there are reasons to choose to file. If the choice to file is made, there are furtherissuesastotheappropriatechapterforrelief,thetimingofabankruptcy filing,aswellastechnicalrequirementsaffectingyourrights.Thesedecisionsare extremelycomplicatedandrequireanevaluationofthefactsofaparticularcase and an assessment of the applicable law. Good representation by a qualified professionalmaybecritical.

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X.

SAMPLECHAPTER13BANKRUPTCYPLAN

Set forth below for you reference is a sample chapter 13 plan from the United StatesBankruptcyCourtfortheDistrictofMassachusetts. Mostbankruptcycourtsthroughoutthecountryhavepreferredformswhichyou canobtainfromthebankruptcycourtoronlineatthebankruptcycourtswebsite. Call or go online to see if the bankruptcy court where you must file your bankruptcy case has a local form and use that form if you do decide to file a chapter13bankruptcycase. SampleChapter13Plan
DEBTOR(S): (H)________________________________SS#:_____________________ (W)________________________________SS#:_____________________ I.PLANPAYMENTANDTERM: Debtor(s)shallpaymonthlytotheTrusteethesumof$__________forthetermof: 36Months.11U.S.C.1325(b)(4)(A)(i); 60Months.11U.S.C.1325(b)(4)(A)(ii); 60Months.11U.S.C.1322(d)(2). Debtoraversthefollowingcause: __________________________________________________________________________________________________ __________________________________________________________________________________________________ ________ ;or____Months.TheDebtorstatesasreasonstherefore: __________________________________________________________________________________________________ _______________________________________ II.SECUREDCLAIMS: A.Claimstobepaidthroughtheplan(includingarrears): CreditorDescriptionofClaimAmountofClaim (prepetitionarrears,purchasemoney,etc.) _____________________________________________$________________ _____________________________________________$________________ _____________________________________________$________________ TotalofsecuredclaimstobepaidthroughthePlan:$________________

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B.Claimstobepaiddirectlybydebtortocreditors(NotthroughPlan): CreditorDescriptionofClaim __________________________________________________________________________________________________ __________________________________________________________________________________________________ ___________ C.ModificationofSecuredClaims: CreditorDetailsofModificationAmt.ofClaimtoBe (AdditionalDetailsMayBeAttached)PaidThroughPlan _______________________________________________________________ _______________________________________________________________ D.Leases: i.TheDebtor(s)intend(s)torejecttheresidential/personalpropertyleaseclaimsof __________________________________________________________________;or ii.TheDebtor(s)intend(s)toassumetheresidential/personalpropertyleaseclaimsof ____________________________________________________________________. iii.Thearrearsundertheleasetobepaidundertheplanare______________________. III.PRIORITYCLAIMS: A.DomesticSupportObligations: CreditorDescriptionofClaimAmountofClaim __________________________________________$______________ __________________________________________$______________ B.Other: CreditorDescriptionofClaimAmountofClaim _______________________________________________$______________ _______________________________________________$______________ _______________________________________________$______________ _______________________________________________$______________ TotalofPriorityClaimstoBePaidThroughthePlan:$______________ IV.ADMINISTRATIVECLAIMS: A.AttorneysFees(tobepaidthroughtheplan):$______________ B.MiscellaneousFees: CreditorDescriptionofClaimAmountofClaim ___________________________________________$______________ ___________________________________________$______________ ___________________________________________$______________ C.TheChapter13TrusteesfeeisdeterminedbyOrderoftheUnitedStatesAttorneyGeneral.Thecalculationofthe Planpaymentsetforthutilizesa10%Trusteescommission. V.UNSECUREDCLAIMS:

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Thegeneralunsecuredcreditorsshallreceiveadividendof______%oftheirclaims. A.Generalunsecuredclaims$_______________ B.Undersecuredclaimsarisingafterlienavoidance/cramdown: CreditorDescriptionofClaimAmountofClaim ___________________________________________$_______________ ___________________________________________$_______________ ___________________________________________$_______________ C.NonDischargeableUnsecuredClaims: CreditorDescriptionofClaimAmountofClaim ___________________________________________$_______________ ___________________________________________$_______________ ___________________________________________$_______________ TotalofUnsecuredClaims(A+B+C):$_______________ D.Multiplytotalbypercentage:$_______________ (Example:Totalof$38,500.00x.22dividend=$8,470.00) E.Separatelyclassifiedunsecuredclaims(coborrower,etc.): CreditorDescriptionofClaimAmountofClaim ___________________________________________$_______________ ___________________________________________$_______________ ___________________________________________$_______________ Totalamountofseparatelyclassifiedclaimspayableat_____%:$_______________ VI.OTHERPROVISIONS: A.Liquidationofassetstobeusedtofundplan: __________________________________________________________________________________________________ ________________. B.MiscellaneousProvisions: _____________________________________________________________________ VII.CALCULATIONOFPLANPAYMENT: a)Securedclaims(SectionIATotal):$_________________ b)Priorityclaims(SectionIIA&BTotal):$_________________ c)Administrativeclaims(SectionIIIA&BTotal):$_________________ d)Regularunsecuredclaims(SectionIVDTotal):+$_________________ e)Separatelyclassifiedunsecuredclaims:$_________________ f)Totalofa+b+c+d+eabove:=$_________________ g)Divide(f)by.90fortotalincludingTrusteesfee: CostofPlan=$_________________ (ThisrepresentsthetotalamounttobepaidintotheChapter13Plan.) h)Divide(g),CostofPlan,byTermofPlan,_____months i)RounduptonearestdollarforMonthlyPlanPayment:$________________ (Enterthisamountonpage1) Pursuantto11U.S.C.1326(a)(1)unlesstheCourtordersotherwise,debtorshallcommencemakingthepayments proposedbyaplanwithinthirty(30)daysafterthepetitionisfiled.Pursuantto11U.S.C.1326(a)(1)(C),thedebtorshall makepreconfirmationadequateprotectionpaymentsdirectlytothesecuredcreditor.

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VIII.LIQUIDATIONANALYSIS A.RealEstate: AddressFairMarketValueTotalAmountofRecorded Liens(ScheduleD) ____________________$___________________$_____________________ ____________________$___________________$_____________________ ____________________$___________________$_____________________ TotalNetEquityforRealProperty:$_____________________ LessTotalExemptions(ScheduleC):$_____________________ AvailableChapter7:$_____________________ B.Automobile(Describeyear,make,model): ______________Value$________Lien$_________Exemption$_____________________ ______________Value$________Lien$_________Exemption$_____________________ TotalNetEquity:$____________________ LessTotalExemptions(ScheduleC)$____________________ AvailableChapter7:$____________________ C.AllotherAssets:(AllremainingitemsonscheduleB):(Itemizeasnecessary) __________________________________________________________________________________________________ ______________________________________.TotalNetValue:$_____________________ LessExemptions(ScheduleC):$____________________ AvailableChapter7:$_____________________ D.SummaryofLiquidationAnalysis(totalamountavailableunderChapter7): NetEquity(AandB)plusOtherAssets(C)lessallclaimedexemptions:$__________________ E.AdditionalCommentsregardingLiquidationAnalysis: __________________________________________________________________________________________________ ________________________________________ IX.SIGNATURES PursuanttotheChapter13rules,thedebtororhisorherattorneyisrequiredtoserveacopyofthePlanuponthe Chapter13Trustee,allcreditorsandinterestedparties,andtofileaCertificateofServiceaccordingly. _________________________________________________________________________ DebtorsAttorneyDate AttorneysAddress:_______________________________________________________________ Tel.#()_______________________ EmailAddress:_________________________________________________________ I/WEDECLAREUNDERTHEPENALTIESOFPERJURYTHATTHEFOREGOINGREPRESENTATIONSOFFACTARETRUEAND CORRECTTOTHEBESTOFOURKNOWLEDGEANDBELIEF. _________________________ _______________________ Debtor Date _________________________ _______________________ Debtor Date

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XI. ALTERNATIVESTOABANKRUPTCYCASETOCONSIDER
DoNothing

Doing nothing seems unusual, but it is often the least expensive and easiestoptionforsomeoneinfinancialtrouble.Ifyouhavenoassets thatcreditorscanget,youarejudgmentproof.Ifyouarejudgment proof,youshouldconsidernotfilingbankruptcyatallbutinsteadwrite letterstoyourcreditorsstatingthatyouarejudgmentproof.Although onlyabankruptcywillstopcollectioneffortsasamatteroflaw,many creditorscanbepersuadedwithaletterthattheyshouldabandonthe effort to collect assets from a judgment proof individual. The letter shouldsaythatyourcreditorshouldstopcontactingyou,thatyoumay file for bankruptcy, in which event your case will be closed as a no assetcase,andthatitisfutileforthecreditortocontinueitscollection efforts.Failureofacreditortoceasecollectioneffortsaftertheletter may subject the creditor to liability for violating Fair Debt Collection PracticesAct(FDCPA). CreditCounseling

Manygoodcreditcounselorswilldotheirbesttohelpyouavoidfiling forbankruptcy.However,somecreditcounselorsarebadandwilljust collect money for you without providing any valuable services. Be carefulwhenhiringacreditcounselor. Workouts

Directworkouts,i.e.negotiationsdirectlywithcreditors,maybeaway to resolve your financial problems. There are numerous types of workoutsthatoftendependoncreditorspolicies.Youmaybeableto workoutarepaymentplanforsomeorallofthedebtovertimewitha reduced interest rate that could include forgiveness of some or all of yourdebt.

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LoanModifications

As a homeowner, you can try various measures to avoid foreclosure outsideofbankruptcy,however,allrequiresometypeofconcessionby thehomemortgagecompany.Loanmodificationsarespecifictoeach homeownerandlenderandinvolveanegotiationofworkoutterms. Refinancing

Refinancing debts through the equity in your home such as through a second mortgage, reverse mortgage, or home equity line are also alternativestobankruptcy.Bewareofthemanyrisks. ForeclosureRescueScam

Watchout.Neverpursueaforeclosurerescuetransactioninorderto avoidbankruptcy.Nevertransfer yourhousetoanotherindividual or company,whopromisestorefinanceitandpayyourmortgage.These dealsarealwaysscams.Transferringthetitletoyourhomeorproperty ispermanentandfraughtwithdanger.

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XII. RESOURCES
This personalized report gives you the basics of what you need for a bankruptcy filing so that you fully consider a bankruptcy case. While thisreportgetsyouonyourwayandputsyouaheadofmostdebtors, this report does not cover all possibilities in a bankruptcy case and cannotbereliedupontoensureasuccessfulbankruptcycase. Manyothervaluableresourceswillhelpgetoutofdebt,eitherbyfiling abankruptcycaseoroutsideofbankruptcy. Inparticular,recommendedare: TheRoadOutofDebt:BankruptcyandOtherSolutionstoYour FinancialProblems,byJoanN.FeeneyandTheodoreW.Connolly (Wiley&Sons,Inc.2010);www.roadoutofdebt.com Additionally,youcanconsultthefollowingsources: BankruptcyandDebtBasics AmericanAssociationofRetiredPersons(AARP): www.aarp.org AmericanBankruptcyInstitute:www.abiworld.org. Bankrate.com:www.bankrate.com TheCenterforResponsibleLending: www.responsiblelending.org/ ElizabethWarrensworks(HarvardLawprofessorand bankruptcyexpert): www.law.harvard.edu/faculty/directory/facdir.php?id=82) IHateDebt:www.ihatedebt.com

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Jump$tartCoalitionforPersonalFinancialLiteracy: www.jumpstartcoalition.org Mahalo:www.mahalo.com/howtodealwithdebt collectors MSNMoney:http://articles.moneycentral.msn.com. PracticalMoneySkills:www.practicalmoneyskills.com SmartMoney:www.smartmoney.com U.S.BankruptcyCourts: www.uscourts.gov/bankruptcycourts/bankruptcybasics.ht ml ConsumerCreditDebt NationalFoundationforConsumerCredit(NFCC):1(800) 3882227orwww.nfcc.org.See www.nfcc.org/FirstStep/firststep_01.cfmforalistof NFCCapprovedcounselors. AssociationofIndependentConsumerCreditCounseling Agencies(AICCCA):1(866)7038787orwww.aiccca.org. Seewww.aiccca.org/find.cfmforalistofAICCCA approvedcounselors. BetterBusinessBureau(BBB):1(703)276.0100or www.bbb.org.Seewww.bbb.org/us/toensurethatother consumershavenothaddifficultieswiththecredit counseloryouareconsideringhiring. CreditAbuseResistanceEducation(CAREprogram): www.careprogram.us FairDebtCollection.com:www.fairdebtcollection.com FederalTradeCommission(FTC):Visitwww.ftc.govorcall tollfree,1(877)FTCHELP(18773824357);TTY:1(866)

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6534261tofileacomplaintortogetfreeinformationon consumerissues. Stopreceivingprescreenedcreditcardoffersby notifyingeachofthethreemajorcreditbureaus,Equifax, Experian,andTransUnion,throughtheirWebsites: Equifax:www.equifax.com Experian:www.experian.com TransUnion:www.transunion.com LegalHelp Contacttheclerkofthebankruptcycourt,theU.S.Trustees Officeortheofficeofthebankruptcyadministratorinyourarea andaskfornamesofcompetentconsumerbankruptcylawyers. AmericanBarAssociation:www.abalawinfo.org /find1.htmland www.abanet.org/legalservices/findlegalhelp/home.cfm (AmericanBarAssociationlistofresourcesincluding foreclosureresourcesandinformation) AmericanBoardofCertification:www.abcworld.org AmericanBankruptcyInstitute:www.abiworld.org AmericanCollegeofBankruptcy:www.amercol.org MartindaleHubbelllawyerratingservice: www.martindale.com NationalAssociationofConsumerBankruptcyAttorneys: www.nacba.org NationalConsumerLawCenter:www.consumerlaw.org orwww.nclc.org. ThomsonWestPublicationsattorneylocatorservice: www.findlaw.comandbankruptcy.findlaw.com

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FilingforBankruptcywithoutanAttorney:Thisresource providesmoredetailedinformationabouttheprocedures forfilingforbankruptcyfortheindividualwhochoosesto representhimorherself. www.uscourts.gov/bankruptcycourts/prose.html MortgageDebt Thefollowingresourcesareusefulindealingwithmortgage debt,foreclosure,ormortgagescams. ComptrolleroftheCurrencyU.S.Departmentofthe Treasury:www.helpwithmybank.govwww.occ.treas.gov. FDIC:www.fdic.gov;(FHA):1(800)CALLFHAor www.fha.com FederalTradeCommission(FTC): www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.sht m FederalReserveBoard: www.federalreserve.gov/pubs/foreclosurescamtips/defau lt.htm ForeclosureSelfDefenseBlog: http://foreclosureselfdefense.com HomeownerCrisisResourceCenter: www.housinghelpnow.org HomeownershipPreservationFoundation(HPF)and HOPENOWhotline:1(888)995HOPEor www.hopenow.com MakingHomeAffordable: www.makinghomeaffordable.gov NoloPress:www.nolo.com/legal encyclopedia/bankruptcyforeclosuredebt/
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NeighborWorksAmerica: www.nw.org/network/home.asp TheOfficeoftheComptrolleroftheCurrency(OCC): www.helpwithmybank.govand www.occ.gov/customer.htm. U.S.DepartmentofHousingandUrbanDevelopment (HUD):1(800)5694287orwww.hud.gov.See www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfmforalist ofHUDapprovedcounselors. TaxDebt InternalRevenueService(IRS):1(800)8291040or www.irs.gov,See www.irs.gov/individuals/index.html?navmenu=menu1for manyresourcesforindividualsand www.irs.gov/localcontacts/index.htmlforcontact informationforyourlocalIRSoffice.Donthaveyourmost recenttaxreturn?Transcriptsareavailableforthecurrent andthreepriorcalendaryears.Toobtainacopy,contact theIRSbyphoneorsubmitForm4506Tbymailorfax. TheCollectionProcess:www.irs.gov/pub/irs pdf/p594.pdf OfferinCompromiseBooklet:www.irs.gov/pub/irs pdf/f656b.pdf TaxpayerAdvocateService(TAS):1(877)7774778or www.irs.gov/advocate/.See www.taxtoolkit.irs.gov/helpwithtaxproblemsii/tas/ forcontactandotherinformation.

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 This report is a product of BankruptcyRoute.com BankruptcyRoute.com is a Debt Relief Agency dedicated to helping people understand the debt relief available to them under the BankruptcyCode. DISCLAIMER: This report is intended as a general discussion of legal issues regarding your assets and debt and not as a statement of fact, legal advice or a legal opinion. Personal opinions may also be expressed.Noattorneyclientrelationshipiscreatedbythisreport.Do not act or rely upon lawrelated information in this report without seeking the advice of an attorney licensed to practice in debt and bankruptcyareas,preferablywithexperiencewithbankruptcycases.

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