Bankruptcy Disclaimers

I am required by law to provide the following information regarding Bankruptcy cases. These disclaimers are required under Title 11 of the U.S. Code:

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

§ 527 Disclaimers

(A) All information that you provide with a petition and thereafter during a case is required to be complete, accurate, and truthful;

(B) All assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in § 506 must be stated in those documents where requested after reasonable inquiry to establish such value;

(C) current monthly income, the amounts specified in § 707 (b)(2), and, in a case under chapter 13 of this title, disposable income (determined in accordance with § 707 (b)(2)), are required to be stated after reasonable inquiry; and

(D) information that you provide during your case may be audited, and failure to provide such information may result in dismissal of your case or other sanction, including a criminal sanction.



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

The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.

Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs, and in some cases a Statement of Intention, need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a ‘trustee’ and by creditors.

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

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

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

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


§ 342 Disclaimers

The four bankruptcy chapters the law requires me to briefly describe are as follows:

Chapter 7: For consumers, Chapter 7 allows individuals to discharge eligible debt by way of liquidating non-exempt property to repay their creditors. Chapter 7 is generally the most inexpensive bankruptcy to file.

Chapter 13: Chapter 13 allows debtors to repay debt through a court-approved repayment plan rather than liquidate their assets. It is more complex than Chapter 7, and generally takes 3 to 5 years. A Chapter 13 requires a greater level of analysis and work, and is thus more expensive than a Chapter 7, but usually not as expensive as a Chapter 11.

Chapter 11: Chapter 11 is a highly technical and complex way for businesses (and in certain cases, individuals) to repay their debt by reorganizing it and discharging certain debts. Generally the most complex type of bankruptcy, Chapter 11’s are thus often the most expensive.

Chapter 12: Chapter 12 is very similar to Chapter 13, but is typically reserved for family farmers and fishermen, providing these groups with certain benefits.

You will have to pay court fees in addition to attorney’s fees if you file for bankruptcy. Credit counseling is required. Credit counseling can assist you in learning how to properly prepare a budget and manage your debt. The Clerk of Court will have an approved list of credit counseling and financial management agencies. A list is also maintained online at the U.S. Department of Justice’s website.

Also, please be advised that:

A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a case under this title shall be subject to fine, imprisonment, or both; and

All information supplied by a debtor in connection with a case under this title is subject to examination by the Attorney General.


Two key points:

  1. Tell the complete truth; don’t try to hide assets or money. You’re not going to “pull a fast one” on the U.S. Trustee (trust me, they’ve seen it all before), and I’m not going to help you do so.
  2. You should carefully consider all of your available options before you rush into anything; be wary of anyone trying a “hard sell” to get you to sign something immediately. With very few exceptions, there is virtually always plenty of time to carefully read the contract or retainer agreement.