Beat the Reaper (IRS)

The general rule is that you will realize taxable income from debt forgiveness. That's right, that money you got from a loan you no longer are legally obligated to pay, the IRS will consider as income to you, and tax you on it.

The Bad Mortgage Mercy Exception - an IRS Special (for 2007 - 2009)

Wall Street gets trillions (no, no typo) for screwing the pooch.

You on the other hand get, uh, nothing. Well, you get not to have to pay taxes on income you didn't really earn (you borrowed the money, yes, and spent it on something, but it wasn't like it was really free, right? Mortgages, foreclosure, short sales, debt collection etc. ad nauseum). The IRS will give you a break if you ducked out on your mortgage obligations by foreclosure, short sale, or loan modification but only if you did your ducking between 2007 and 2009

How To Beat The Reaper

Let's say you don't qualify for a free ducking by the IRS.

Ah - Bankruptcy is a friend of yours.

Debt forgiveness as the result of bankruptcy discharge generally is not taxable. Lucky you.

(c) copyright 2008 New Dawn Law all rights reserved

Feeling Guilty About Needing Bankruptcy Relief? Don't.

There's no government bailout waiting there for you, is there.

Student Loans and Bankruptcy

LOAN CANCELLATIONS AND DISCHARGE

All loans received under programs authorized by Title IV, of the Higher Education Act can be canceled for several different circumstances including: (1) in the event of your death; or (2) if you become totally and permanently disabled after the loan is disbursed.

In addition, some loan types may qualify for loan discharge under a variety of conditions. Some of the most common cancellation provisions are listed for you below:

the school you attended improperly certified your ability to benefit from the training given.

the school you attended closed while you were in attendance or within 90 days after you withdrew from the school.

A National Defense Student Loan can be canceled in 2 additional circumstances: (1) full-time teaching and (2) military service.

Finally, your obligation to repay your loan may be discharged in bankruptcy. (Ed. note: good flippin' luck; see undue hardship grounds below to qualify)

Also please visit the Discharges section of the main FSA site for additional information on loan cancellation and discharges.

Death
In the event of the borrower's death, or on or after July 23, 1992 the death of the student for whom a parent received a PLUS loan, the obligation of the borrower and any endorser to make any further payments on the loan is discharged.

To verify a borrower's death, the servicing agency must have the original, certified copy, or clear, accurate, and complete photocopy of the original or certified death certificate. The U.S. Department of Education cannot accept a faxed copy.

Total and Permanent Disability
If a physician (doctor of medicine or osteopathy) certified that you are totally and permanently disabled and you meet certain other requirements during a 3 year conditional discharge period your loan(s) may be discharged.

You may request a "Loan Discharge Application: Total and Permanent Disability" from our forms request page.

False Certification
If you received a Direct Loan or a Federal Family Education Loan (FFEL) Program Loan on or after January 1, 1986, you may qualify for a False Certification discharge if you (or the student for whom a parent received a PLUS loan) received a loan that was falsely certified by an eligible school. Your eligibility to borrow is considered to have been falsely certified if the school--

Admitted you on the basis of ability to benefit from its training and you did not meet the applicable requirements for admission on the basis of ability to benefit; or
Signed your name without your authorization on the loan application or promissory note; or

You have a physical, mental, or legal status or condition at the time of enrollment that would legally bar employment in your field of study.

You are the victim of identity theft.

In order to permit a student to borrow a Federal Direct Loan or FFEL Program Loan, schools are required to certify that student borrowers who lack a high school diploma or GED have the ability to benefit from the training offered by the institution.

False certification of a student borrower's eligibility occurs, for example, if the school failed to test such a student's ability to benefit or conducted testing in an improper manner. Schools may satisfy the ability to benefit requirements, for example, by testing students or offering courses in remedial education.

Misrepresentations, by the school, on the other hand, regarding the school's educational program or its financial or administrative capability, including the school's placement services or the quality of the school's facilities, faculty, or equipment are not part of the process of "certification" of the student's eligibility to borrow and do not entitle the borrower to False Certification loan discharge.

If your loan is discharged, you will not owe any more payments on the loan, and you will get a refund of payments you have made in the past. Also, if the loan is discharged, the servicing agency will tell credit reporting agencies that the loan was discharged, and any adverse credit history resulting from nonpayment of the discharged loan will be deleted. In addition, your discharged loan will not prevent you from applying for federal student financial aid.

You may request a "Loan Discharge Application: False Certification of Ability to Benefit , Loan Discharge Application: False Certification (Disqualifying Status), Loan Discharge Application: Unauthorized Signature/Unauthorized Payment", or "Loan Discharge Application: False Certification (Identity Theft)" by clicking here or by contacting us.

Closed School
If you received a Federal Perkins Loan Direct Loan or FFEL Program Loan on or after January 1, 1986, you may qualify for a Closed School discharge if you (or the student for whom a parent received a PLUS loan) could not complete the program of study for which the loan was intended because the school at which you (or student) were enrolled, closed while you were in attendance, or you (or student) withdrew from the school, or were on an approved leave of absence, not more than 90 days prior to the date the school closed. You must not have completed the program of study through a teach-out at another school or by transferring academic credits or hours earned at the closed school to another school.

If your loan is discharged, you will not owe any more payments on the loan, and you will get a refund of payments you made in the past. Also, if the loan is discharged, the servicing agency will tell credit reporting agencies that the loan was discharged, and any adverse credit history resulting from nonpayment of the discharged loan will be deleted. In addition, your discharged loan will not prevent you from applying for additional federal student financial aid.

If you believe that a school you attended may have closed, you may be able to use the Closed School Database to confirm this and to determine the date the school closed. Please note that the closed school list includes only schools that at one time participated in the federal student aid programs administered by the U.S. Department of Education. A closed school that never participated in the programs administered by the Department will not be on this database.

Please visit our Closed School Information section for more information on this topic.

You may request an "Loan Discharge Application: School Closure" by clicking here or by contacting us to request an application.

Full-time Teaching
The Teacher Loan Forgiveness Program grants loan forgiveness of up to $17,500 for teachers in certain specialties and up to $5,000 for other teachers, who teach for five years in certain low-income schools and meet other requirements. This forgiveness benefit is available to Direct Loan and Federal Family Education Loan (FFEL) program borrowers who did not have an outstanding balance on a Direct Loan of FFEL Program loan on October 1, 1998, or on the date they obtained a Direct Loan of FFEL program loan after October 1, 1998.

If you received a Perkins Loan or a National Direct Student Loan, you may qualify for the teacher loan cancellation.

Please visit the Cancellation/Deferment Options for Teachers Home Page for additional information.

Military Service
Recipients of a National Defense Student Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if the loan was disbursed after April 13, 1970 and full-time active service began after June 30, 1970.

Recipients of a National Direct Student Loan and Perkins Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if his/her military service was for a full year in a hostile area.

If you believe that you may qualify for cancellation of your loan(s) due to your military service as described above, you should send a copy of your DD214 (discharge form) and letter of explanation to the agency servicing your loan.

Bankruptcy
Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy, unless you can successfully prove that repayment of the debt would cause "undue hardship" as defined by case law in your jurisdiction. Previously, student loan and grant liabilities could only be canceled (discharged) due to bankruptcy under certain conditions which, in general, depended on the amount of time between the date on which a loan or grant liability was due or the date that the bankruptcy was filed, as well as undue hardship.

Effective May 28, 1991 and prior to October 8, 1998, a loan or grant liability was discharged by entry of a general discharge order if the first payment came due on the debt at least 7 years before the bankruptcy was filed. Prior to 1991 amendments, only five years was required. Any grace periods, forbearance, or deferment must be subtracted from the time elapsed between the first payment due date and the filing date when calculating time in repayment. Debts outstanding for less than the required seven year period could be discharged only if the court made an express finding that the repayment of the debt would place an "undue hardship" on the borrower. These non-dischargeability requirements apply to educational loans received by both student borrowers and by parent borrowers, and apply to loans received by any kind of borrower to pay off prior loans (Consolidation Loans). Dischargeability of these types of debts is governed by 11 U.S.C. 523 (a)(8). In order to determine the dischargeability of a loan, the servicing agency needs the following three pieces of information from you or your attorney:

Notice of First Meeting of Creditors;
List of Creditors (Schedule A-3); and
the Final Discharge Order

Please call us 1-800-621-3115 for additional information on any of the information on this page.

US Department of Education, Federal Student Aid Agency

Bankruptcy Exemptions - You Can Keep Your Hat On

You can keep many things of value despite filing for bankruptcy relief. These are "exemptions." See Bankruptcy Schedule C "Property Claimed As Exempt"

You have to choose between
1) federal exemptions and

2) state exemptions to see which is more favorable for your particular circumstances.

California has two "systems" of exemptions that are mutually exclusive. Pick one set or the other, but you cannot "cherry pick." California and other states have a "wild card" exemption that will be attractive to many.

Federal law makes social security benefits exempt in bankruptcy or from creditors claims in state courts


(c) copyright 2008 New Dawn Law

Batten Down The Hatches, It's A Nantucket Sleigh Ride

From my reading list

Calculated Risk

Paul Krugman

Noriel Roubini - "Da Man"

and of course

Clusterfuck Nation

Frequently Asked Questions: Bankruptcy Means Test and Starter Kit

Where Do I Start?

Whether bankruptcy is for you is addressed in prior blog posts. Where to start once you've decided that it is can be overwhelming. Start with this information.

The first step is to determine if you qualify for bankruptcy, and if so, in what type of bankruptcy case.

You don't qualify if you've filed for and received a bankruptcy discharge in a Chapter 7 case in the past eight years. If this is not a problem you can go to the next step, the Means Test, which is the gateway to the New Bankruptcy (The Bankruptcy Abuse Protection and Consumer Protection Act of 2005).

Other than certain automatic qualifiers many persons will have to take and pass the Means Test to qualify for Chapter 7 relief,or to determine their time commitment for a Chapter 13 plan or Chapter 11 plan requirements for individuals. See Bankruptcy Basics, below, for descriptions of Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases.

You're In!

You automatic qualify for Chapter 7 relief, regardless of your income or expenses, if
a) you are a disabled veteran,
b) the majority (50%+) of your debt is business related, taxes, liability for personal injury, or
c) your gross income is no more than the median family income.

If you earn more than the median family income for your state or territory, you will have to take and pass the Means Test to qualify for Chapter 7 relief.

Ready For A Test?

Here are forms and databases you need to determine if you pass the Bankruptcy Means Test.

Legalconsumer.com has a free online Means Test application.

For the self-employed

If you don't pass the Means Test the first couple times, don't despair (unless you're way way off the mark).

Good lawyering might help you with the "six month income average" part of the test and with the deductible expenses. A lawyer can even argue that your higher than national average living expenses are reasonable under the circumstances (for example, your auto and driving expenses are way high because you need to drive far to get to work or for work). It can be tricky. (Cathy Moran, Esq blog.)

Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.

To apply the means test, the courts will look at the debtor's average income for the 6 months prior to filing and compare it to the median income for that state. For example, the median annual income for a single wage-earner in California is $47,363. If the income is below the median, then Chapter 7 remains open as an option. If the income exceeds the median, the remaining parts of the means test will be applied.

This is where it gets a little bit trickier. The next step in the calculation takes income less living expenses (excluding payments on the debts included in the bankruptcy), and multiplies that figure times 60. This represents the amount of income available over a 5-year period for repayment of the debt obligations.

If the income available for debt repayment over that 5-year period is $10,000 or more, then Chapter 13 will be required. In other words, anyone earning above the state median, and with at least $166.67 per month of available income, will automatically be denied Chapter 7. So for example, if the court determines that you have $200 per month income above living expenses, $200 times 60 is $12,000. Since $12,000 is above $10,000, you're stuck with Chapter 13.

What happens if you are above the median income but do NOT have at least $166.67 per month to pay toward your debts? Then the final part of the means test is applied. If the available income is less than $100 per month, then Chapter 7 again becomes an option. If the available income is between $100 and $166.66, then it is measured against the debt as a percentage, with 25% being the benchmark.

In other words, let's say your income is above the median, your debt is $50,000, and you only have $125 of available monthly income. We take $125 times 60 months (5 years), which equals $7,500 total. Since $7,500 is less than 25% of your $50,000 debt, Chapter 7 is still a possible option for you. If your debt was only $25,000, then your $7,500 of available income would exceed 25% of your debt and you would be required to file under Chapter 13.

To sum up, first figure out whether you are above or below the median income for your state - median income figures are available at the link above.

Be sure to account for your spouse's income if you are a two-income family. Next, deduct your average monthly living expenses from your monthly income and multiply by 60. If the result is above $10,000, you're stuck with Chapter 13. If the result is below $6,000, you may still be able to file Chapter 7. If the result is between $6,000 and $10,000, compare it to 25% of your debt. Above 25%, you're looking at Chapter 13 for sure.

Remember, if Chapter 7 isn't available to you, perhaps Chapter 13 is, and might even be more suitable. More on Chapter 13 especially its power to strip away mortgage liens later.

Finally, for higher asset/liability cases, corporate and partnership (non sole proprietory cases), Chapter 11 is available. [1] [2] [3]

Start Here

If bankruptcy is a legal solution for you, start with the certificate of credit counseling you will need to file your consumer bankruptcy case.

This provider of certificates is the lowest cost I have found so far, but dont take my word for it because they change all the time and I may be out of date.

Here's Your Bankruptcy Bonus Gift

When you file, bankruptcy relief is immediate and automatic - the Automatic Stay stops virtually all actions by creditors against you.

But don't wait t get bankruptcy relief until judgment is entered against you in an unlawful detainer! Game over!

Can You Really Do Your Own Bankruptcy Case?

Here's food for thought.

But you can try. Here's one do it yourself book by Nolo Press

Here's another popular Chapter 7 guidebook

And here is a Chapter 7 Case Flow Chart

If you are too poor to even pay the Chapter 7 $299 filing fee, you can apply for a fee waiver, or ask to pay it in (4) installments.

More valuable infomation: The American Bankruptcy Institute

(c) copyright 2008 - 2009 New Dawn Law all rights reserved

Where to Find Bankruptcy Law and Bankruptcy Rules

Bankruptcy Code (Title 11, United States Code)

Federal Rules of Bankruptcy Procedure

Federal Evidence Code

Local Forms and Rules of the United States Bankruptcy Court Central District of California

(Commonly used forms for debtors are linked)

DRAFT LOCAL BANKRUPTCY RULES FOR PUBLIC COMMENT PERIOD JULY 25, 2008 THROUGH AUGUST 29, 2008
Local Bankruptcy Rules (Draft)
Local Bankruptcy Rules Cross Reference Please note: Because the Local Bankruptcy Rules revision was so comprehensive, a redline version would be meaningless and will not be made available.

INTERIM BANKRUPTCY RULES

Interim Bankruptcy Rules (August 2005)
Interim Bankruptcy Rules (Revised October 13, 2005)
Interim Bankruptcy Rules (Revised October 2006)

ABRIDGED LOCAL BANKRUPTCY RULES - EFFECTIVE JANUARY 22, 2008

Abridged Local Bankruptcy Rules (Complete PDF File)
Appendix I - Local Bankruptcy Rules Forms List
Appendix II - Attorney Discipline Procedures in Bankruptcy Court (General Order No. 96-05)
Appendix III - Adoption of Mediation Program for Bankruptcy Cases and Adversary Proceedings (Second Amended General Order No. 95-01)
Appendix IV - Guidelines for Allowance of Attorneys' Fees in Chapter 13 Cases
Cross Reference Index
Rule 1001-1 through 1073-1
Rule 2002-2 through 2090-1
Rule 3001-1 through 3020-1
Rule 4001-1 through 4008-1
Rule 5003-2 through 5075-1
Rule 6004-1 through 6007-1
Rule 7001-1 through 7069-1
Rule 8000-1 through 8007-1
Rule 9009-1 through 9075-1
Subject Index


UNABRIDGED LOCAL BANKRUPTCY RULES - EFFECTIVE JANUARY 22, 2008

Unabridged Local Bankruptcy Rules (Complete PDF File)


LOCAL BANKRUPTCY RULES FORMS


F 1010-1 Summons and Notice of Status Conference in an Involuntary Bankruptcy Case (Mandatory)
F 1010-2 Summons and Notice of Status Conference in Section 304 Case Ancillary to a Foreign Proceeding (Mandatory)
F 1015-2.1 Statement of Related Cases (Mandatory)
F 1017-1.1 Debtor's Motion to Convert Case under 11 U.S.C. §§ 706(a), 1112(a) (Mandatory)
F 1017-1.2 Order on Debtor's Motion to Convert Case under 11 U.S.C. §§ 706(a), 1112(a) (Mandatory)
(Note: Please RIGHT click HERE to download this to MS-Word format) Effective 07/02/2007 through 01/21/2008)
F 1017-1.3 Notice of Debtor's Motion to Convert Case Under 11 U.S.C. §§ 706(a) (Mandatory)
F 1017-1.4 Debtor's Notice of Conversion Under 11 U.S.C. §§ 1208(a) or 1307(a) (Mandatory)
F 1017-1.5 Order on Debtor's Notice of Conversion Under 11 U.S.C. §§ 1208(a) or 1307(a) (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 2014-1 Statement of Disinterestedness for Employment of Professional Person Under F.R.B.P. 2014 (File with Application for Employment) (Optional)
F 2016-1.1 Notice of Hearing on Application for Payment of Interim or Final Fees and/or Expenses under 11 U.S.C. § 331 or 330 (Optional)
F 2016-1.2 Application for Payment of: Interim Fees and/or Expenses (11 U.S.C. § 331); Final Fees and/or Expenses (11 U.S.C. § 330) (Optional)
F 2016-1.3 Order on Application for Payment of: Interim Fees and/or Expenses (11 U.S.C. § 331); Final Fees and/or Expenses (11 U.S.C. § 330) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 2016-2.1 Trustee's Notice of Motion and Motion Under Local Bankruptcy Rule 2016-2 For: Authorization to Employ Paraprofessionals and/or Authorization to Pay Flat Fees Up to Tax Preparer (Optional)
F 2016-2.1A Order on Trustee's Motion Under Local Bankruptcy Rule 2016-2 For Authorization to Employ Paraprofessionals and/or Authorization to Pay Flat Fee to Tax Preparer (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 2016-2.2 Notice of Motion and Motion No. ____ Under Local Bankruptcy Rule 2016-2 for Approval of Cash Disbursements by the Trustee; Opportunity to Request Hearing; Declaration of Trustee (Optional)
F 2016-2.2A Order on Trustee's Motion No.___ Under Local Bankrutpcy Rule 2016-2 For Approval of Cash Disbursements by the Trustee (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 2090-1.1 Declaration Re: Limited Scope of Appearance Pursuant to Local Bankruptcy Rule 2090-1 (Optional)
F 2090-1.2 Application of Non-Resident Attorney to Appear in a Specific Case [Local Bankruptcy Rule 2090-1(b)] (Optional)
F 2090-1.3 Order on Application of Non-Resident Attorney to Appear in a Specific Case [Local Bankruptcy Rule 2090-1(b)] (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 2090-1.4 Substitution of Attorney (Optional)
F 3001.1 Request for Issuance of Notice of Transfer of Claim Pursuant to F.R.B.P. 3001(e) (Optional)
F 3001.2 Notice of Transfer of Claim Pursuant to F.R.B.P. 3001(e) (Optional)
F 3007-1.1 Order on Objection to Claims (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 3007-1.2 Notice of Trustee's/Debtor in Possession's Request for Copy of Proof of Claim (Optional)
F 3007-1.3 Notice of Objection to Claim (Mandatory)
F 3011-1 Motion for Order Releasing Unclaimed Funds (Optional)
F 3015-1.1 Chapter 13 Plan (Mandatory)
F 3015-1.1A Addendum to Chapter 13 Plan Concerning Debtors Who are Repaying Debt Secured by a Mortgage on Real Property or a Lien on Personal Property the Debtor Occupies as the Debtor's Principal Residence (Optional)
F 3015-1.2 Notice of Section 341(a) Meeting and Hearing on Confirmation of Chapter 13 Plan with Copy of Chapter 13 Plan (Mandatory)
F 3015-1.4 Declaration Setting Forth Postpetition, Preconfirmation Deed of Trust Payments [Local Bankruptcy Rule 3015-1(m)] (Mandatory)
F 3015-1.5 Notice of Motion Under Local Bankruptcy Rules 3015-1(n) and 9013-1(g) to Modify Plan or Suspend Plan Payments (Mandatory)
F 3015-1.5 (REVISED) Notice of Motion Under Local Bankruptcy Rules 3015-1(n) and (w) to Modify Plan or Suspend Plan Payments (Mandatory) Effective 09/01/08
F 3015-1.6 Motion Under Local Bankruptcy Rules 3015-1(n) and 9013-1(g) to Modify Plan or Suspend Plan Payments; Trustee's Comments; Order Thereon (Mandatory)
F 3015-1.6 (REVISED) Motion Under Local Bankruptcy Rules 3015-1(n) and (w) to Modify Plan or Suspend Plan Payments (Mandatory) Effective 09/01/08
F 3015-1.7 Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys (Mandatory)
F 3015-1.8 Declaration RE Payment of Domestic Support Obligations (Preconfirmation) (Mandatory)
F 3015-1.9 Declaration RE Tax Returns (Preconfirmation) (Mandatory)
F 3015-1.10 Declaration Setting Forth Post Petition, Preconfirmation Payments on: 1. Leases of Personal Property; 2. Purchase Money Security Liens in Personal Property (Mandatory)
F 3015-1.11 (NEW) Trustee's Comments on or Objection to Application for Supplemental Fees Effective 09/01/08
F 3015-1.12 (NEW) Order on Application for Supplemental Fees (Note: Please RIGHT click HERE to download this to MS-Word format) Effective 09/01/08
F 3015-1.13 (NEW) Trustee's Comments on or Objection To: Effective 09/01/08
F 3015-1.14 (NEW) Order on: (Note: Please RIGHT click HERE to download this to MS-Word format) Effective 09/01/08
F 3017-1 Chapter 11 Disclosure Statement (Note: Please RIGHT click HERE to download this to Wordperfect format)
F 3017-2 Plan Ballot Summary (Optional)
F 3018-1 Chapter 11 Plan (Note: Please RIGHT click HERE to save this to Wordperfect form)
F 4001-1.DEC Declaration of _____ RE: Default Under Adequate Protection Order; Request for Entry of Order Granting Relief From Stay (Mandatory)
F 4001-1M.CUST
Notice of Motion and Motion for (A) Relief From the Automatic Stay under 11 U.S.C. § 362 (Real Property): and (B) Relief from Turnover under 11 U.S.C. § 543 by Prepetition Receiver or Other Custodian (with supporting declarations) (Mandatory) [formerly 350 CUST]
F 4001-1M.ER Extraordinary Relief Attachment (Optional to the Judge) [formerly 350 ER]
F 4001-1M.IS Notice of Motion in Individual Case for Order Imposing a Stay or Continuing the Automatic Stay as the Court Deems Appropriate (Mandatory)
F 4001-1M.NA Notice of Motion and Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (with supporting declarations) (Action in Non-Bankruptcy Forum) (Mandatory) formerly 350 NA]
F 4001-1M.PP Notice of Motion and Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (with supporting declarations) (Personal Property) (Mandatory)
F 4001-1M.RP (REVISED) Notice of Motion and Motion for Relief from the Automatic Stay Under 11 U.S.C. § 362 (Real Property) (Mandatory)
F 4001-1M.TCS Trustee’s Notice of Motion and Motion for Order Continuing the Automatic Stay Under 11 § 362 U.S.C.(h)(2), for Adequate Protection and for Delivery of Personal Property in Individual Case (Mandatory)
F 4001-1M.TS Notice of Motion and Motion in Individual Case for Order Confirming Termination of Stay Under 11 U.S.C. §362(j) or that No Stay is in Effect Under 11 U.S.C. § 362(c)(4)(A)(ii) (Mandatory)
F 4001-1M.UD (REVISED) Notice of Motion and Motion for Relief from the Automatic Stay or for Order Confirming that the Automatic Stay Does Not Apply Under 11 U.S.C. § 362(l) (Mandatory)
F 4001-1M.13 Declaration of bottomright for Standing Trustee (Chapter 12 and 13 Cases only; Attach to Stay Motion) (Mandatory) [formerly 350.13]
F 4001-1M.RES Response to Motion for Order to Terminate, Annul, Modify, or Condition the Automatic Stay under 11 U.S.C. § 362 and Declaration(s) in Support (Optional) [formerly 390]
F 4001-1O.CUST Order Granting Motion for (1) Relief From the Automatic Stay under 11 U.S.C. § 362, and (2) Relief from Turnover under 11 U.S.C. § 543 by Prepetition Receiver or Other Custodian (Mandatory) [formerly 351 CUST] (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.DENY (REVISED) Order Denying Motion for Relief From the Automatic Stay Under 11 U.S.C. § 362 (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.ER Extraordinary Relief Attachment (Optional to the Judge) [formerly 351 ER] (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.NA Order Granting Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (Action in Non-Bankruptcy Forum) (Mandatory) [formerly 351 NA] (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.PP Order Granting Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (Personal Property) (Mandatory) [formerly 351 PP] (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.RP Order Granting Motion for Relief From the Automatic Stay Under 11 U.S.C. § 362 (Real Property) (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.TCS Order Granting Trustee’s Motion for Order Continuing the Automatic Stay, for Adequate Protection and for Delivery of Personal Property in Individual Case (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.IS Order Granting Motion for Order Imposing a Stay or Continuing the Automatic Stay (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1O.UD Order Granting Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (Unlawful Detainer) (Mandatory) [formerly 351UD] (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4001-1.2 Debtor’s Further Certification of Cure of Monetary Default Underlying Judgment for Possession of Residential Property and Proof of Deposit (11 U.S.C. § 362(l)(2)) (Optional)
F 4001-1.3 Lessor’s Objection to Debtor’s Certification and/or Debtor’s Further Certification Concerning Residential Property and Notice of Hearing (11 U.S.C. § 362(l)(3)(A)) (Optional)
F 4001-1.4 Lessor’s Certification of (1) Prepetition Eviction Action Seeking Possession of Residential Property Based on Debtor’s Prepetition Endangerment of Property or Illegal Use of a Controlled Substance, or (2) Endangerment of the Property or Illegal Use of a Controlled Substance within the Last 30 Days (11 U.S.C. § 362(b)(23)) (Optional)
F 4001-1.5 (Debtor’s Objection to Lessor’s Certification and Notice of Hearing (11 U.S.C. § 362(m)(2)(A) and (B)) (Optional)
F 4001-2 Statement Pursuant to Local Bankruptcy Rule 4001-2 (Cash Collateral Stipulations) (Optional)
F 4008-1.1 Reaffirmation Agreement (Mandatory) (Note: F4008.1-1 is replaced by Form 240A)..... Order on Reaffirmation Agreement Form 240B
F 4008-1.2 Notice of Hearing RE: Reaffirmation Agreement (Mandatory)
F 4008-1.3 Order Disapproving Reaffirmation Agreement with Notice of Entry (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 4008-1.4 Order Approving Reaffirmation Agreement with Notice of Entry (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 5010-1.1M (NEW) Debtor's Motion to Reopen Case and For Extension of Time to File Debtor's Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management (Mandatory)
F 5010-1.1O (NEW) Order on Debtor's Motion to Reopen Case and For Extension of Time to File Debtor's Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management (Mandatory) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 5075-1.1 Declaration to be Filed with Motion Establishing Administrative Procedures RE 28 U.S.C. § 156(c) (Mandatory)
F 6004-2 Notice of Sale of Estate Property
F 7004-1 Summons and Notice of Status Conference (Mandatory)
F 7016-1.1 Joint Status Report - Local Bankruptcy Rule 7016-1(a)(2) (Optional)
F 7016-1.1a Joint Status Report - Additional Party Attachment (Optional)
F 7016-1.2 Status Conference and Scheduling Order Pursuant to Local Bankruptcy Rule 7016-1(a)(3) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 7027-1 Request for Disclosure of Discovery Documents under Local Bankruptcy Rule 7027-1(d) (Optional)
F 9013-1.1 Notice of Motion For: (Hearing Required) (Mandatory)
F 9013-1.2 Notice of Motion under Local Bankruptcy Rule 9013-1(g)(1) For: (Optional)
F 9013-1.3 Notice of Opposition and Request for a Hearing (Optional)
F 9013-1.4 Notice of Non-Opposition (Optional)
F 9013-1.5 Notice of Motion and Motion to Avoid Lien under 11 U.S.C. § 522(f) (Real Property) (Optional)
F 9013-1.6 Order on Motion to Avoid Lien under 11 U.S.C. § 522(f) (Real Property) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 9013-1.7 Notice of Motion and Motion to Avoid Lien under 11 U.S.C. § 522(f) (Personal Property) (Optional)
F 9013-1.8 Order on Motion to Avoid Lien under 11 U.S.C. § 522(f) (Personal Property) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 9013-1.9 Declaration Re: Entry of Order Without Hearing Pursuant to Local Bankruptcy Rule 9013-1(g) (Optional)
F 9021-1.1 Notice of Entry of Judgment or Order and Certificate of Mailing (Optional)
F 9021-1.2 Request for Entry of Default under Local Bankruptcy Rule 9021-1 (Optional)
F 9021-1.3 Motion for Default Judgment under Local Bankruptcy Rule 9021-1 (Optional)
F 9021-1.4 Default Judgment (without prior judgment) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 9021-1.5 Default Judgment (based on prior judgment) (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)
F 9075-1 Order Shortening Time [Local Bankruptcy Rule 9075-1(b)] (Optional) (Note: Please RIGHT click HERE to download this to MS-Word format)

Bankruptcy Don'ts

These bankruptcy crimes will earn you time in a federal penitentiary

Filing Bankruptcy Without An Attorney

Filing for Bankruptcy Without an Attorney

Credit Counseling | Legal Services | Foreclosure | Petition Preparers

Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully.

It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor's rights. For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay. Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.

Debtors must list all property and debts in their bankruptcy schedules. If a debt is not listed, it is possible the debt will not be discharged. (Lists of the documents [including schedules] that debtors must file are set out on Form B200, one of the Director's Procedural Forms.) The judge can also deny the discharge of all debts if a debtor does something dishonest in connection with the bankruptcy case, such as destroying or hiding property, falsifying records, or lying. Individual bankruptcy cases are randomly audited to determine the accuracy, truthfulness, and completeness of the information that the debtor is required to provide. Please be aware that bankruptcy fraud is a crime.

Pro se litigants, whether debtor or creditor, are expected to follow the rules that govern procedures in the federal courts. Pro se litigants should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court in which the case is filed. Local rules, along with other useful information, are usually posted on the court's web site and are available at the local court's intake counter.

Credit Counseling

Individual debtors are generally required to obtain credit counseling from an approved provider within 180 days before filing a case, and to file a statement of compliance and a certificate of credit counseling furnished by the provider. Failure to do so may result in dismissal of the case.

Finding an Attorney, including Free Legal Services

Debtors are strongly encouraged to obtain the services of competent legal counsel. Even if you cannot afford to pay an attorney, you may be able to qualify for free legal services. For information about hiring an attorney, or about free (also known as "pro bono") legal services, contact your state or local bar association. Many law schools have legal clinics that offer free legal services. Court web sites often have contact information for bar associations and pro bono legal service programs, as well as important procedural information.

For information about such legal resources, check the American Bar Association's Legal Help page, the Legal Services Corporation, or the web site of the bankruptcy court where you intend to file. If you do not know where you are permitted to file a case, check the Official Bankruptcy Forms page to see the box on Form B1 (Voluntary Petition) entitled "Information Regarding the Debtor - Venue" and the part of the Instructions relating to that box.

If you are filing or involved in a bankruptcy case and do not have an attorney, the web site of the bankruptcy court where the case has been or will be filed may be of assistance. The Bankruptcy Resources page may be of help as well.

Foreclosure

Homeowners who are having trouble or have fallen behind in making their mortgage payments may have options that would allow them to avoid foreclosure and bankruptcy. For more information, check these foreclosure resources.

Beware of offers made once your house is in foreclosure - there are a number of fraudulent schemes specifically directed at individuals facing foreclosure. Contact your state attorney general or other state consumer protection agency regarding any suspicious proposal, such as one that requires transferring your property to a third party in order to avoid foreclosure.

Petition Preparers

Beware of bankruptcy petition preparers who do not comply with all legal requirements. The role of non-attorney petition preparers is solely to type information on Bankruptcy Forms (available at this link without charge). Petition preparers are barred by law from providing legal advice - they cannot explain how to answer legal questions or assist in bankruptcy court. Petition preparers must sign all documents they prepare; print their name, address, and social security number on such documents; and furnish copies to the debtor. They cannot sign a document on the debtor's behalf or receive payment from the debtor for court fees.

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Bankruptcy Basics

Too poor to pay the $299 Chapter 7 fee?
(Central District of California waiver form)

Official Bankruptcy Forms

Bankruptcy Forms and Bankruptcy Forms Manual

• Part I - Official Forms, Instructions, and Committee Notes
• Part II- Procedural Forms and Instructions
• Links to Related Material
• Pending Changes

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Bankruptcy FAQs

Bankruptcy Basics

Process The Discharge in Bankruptcy Chapter 7. Liquidation Under the Bankruptcy Code Chapter 13. Individual Debt Adjustment Chapter 11. Reorganization Under the Bankruptcy Code Chapter 12. Family Farmer Bankruptcy or Family Fisherman Bankruptcy Chapter 9. Municipality Bankruptcy Chapter 15. Ancillary and Other Cross-Border Cases SCRA. Servicemembers' Civil Relief Act SIPA. Securities Investor Protection Act Glossary - Terms You Need to Know Bankruptcy Basics provides basic information to debtors, creditors, court personnel, the media, and the general public on different aspects of the federal bankruptcy laws. It also provides individuals who may be considering bankruptcy with a basic explanation of the different chapters under which a bankruptcy case may be filed and to answer some of the most commonly asked questions about the bankruptcy process. On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). BAPCPA made substantial changes to the Bankruptcy Code. And the Bankruptcy Judges Division has made significant revisions to this online version of Bankruptcy Basics to account for BAPCPA's changes to the Code. Most BAPCPA changes apply only to cases filed on or after October 17, 2005. Because the Bankruptcy Judges Division anticipates that there will continue to be a demand for the version of Bankruptcy Basics that describes the pre-BAPCPA bankruptcy process (for cases filed prior to October 17), this page contains links to PDF (print friendly) copies of both the pre-BAPCPA version as well as the current online version of Bankruptcy Basics. Bankruptcy Basics - For Cases Filed on or after October 17, 2005 (pdf) Bankruptcy Basics - For Cases Filed before October 17, 2005 (pdf) Bankruptcy Basics Video Bankruptcy Basics should not substitute for the advice of competent legal counsel or a financial expert. Neither the Bankruptcy Judges Division nor the Administrative Office of the United States Courts can provide legal or financial advice. Such advice may be obtained from a competent attorney, accountant, or financial adviser. Public Information Series Bankruptcy Judges Division Administrative Office of the United States Courts April 2006 Third Edition While the information presented is accurate as of the date of publication, it should not be cited or relied upon as legal authority. It should not be used as a substitute for reference to the United States Bankruptcy Code (title 11, United States Code) and the Federal Rules of Bankruptcy Procedure, both of which may be reviewed at local law libraries, or to local rules of practice adopted by each bankruptcy court. Finally, this publication should not substitute for the advice of competent legal counsel. ______________________________________________________________________________ Basic Bankruptcy Info (Youtube)

Information To Help You In Bankruptcy Or To Avoid It

Information to help you:

A Bankruptcy Video Primer

Introduction Running Time: (2:38)
Types of Bankruptcy Running Time: (3:55)
Limits of Debts Running Time: (4:34)
Filing for Bankruptcy Running Time: (2:57)
Meeting of Creditors Running Time: (1:27)
Court Hearings Running Time: (6:58)
This Discharge Running Time: (1:27)
Legal Assistance Running Time: (4:58)

Useful information from the Office of the US Trustee on bankruptcy

Can You Avoid Bankruptcy? Let's see

"Surviving Debt" - from the National Consumer Law Center

Warning: general bankruptcy information is no substitute for personalized advice from a bankruptcy attorney after your financial information is gathered, your circumstances analyzed and a game plan developed for you.

(c) copyright 2008 New Dawn Law

As Interpreted By The US Congress

Title 11, United States Code ("The Bankruptcy Code")

AN OVERVIEW OF THE CURRENT BANKRUPTCY LAWS

http://www.fedbar.org/bank-jan07.pdf

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