Chapter 7 and 13 Bankruptcy Blog

View changes at:  http://www.mybankruptcyschool.com/

We are now into our third online bankruptcy school class.  Two problems I have found is that (1) some people are unable to attend all the classes for the course they registered for; and (2) with every class, I am developing new training materials and adding it to the course materials.  Since I want to make sure everyone has access to the same tools as future students, I decided to add a method of solving these two problems.

YOU CAN NOW ENROLL AT ANY TIME

Here’s how it works:

There are two components to every Chapter 7 and Chapter 13 bankruptcy course:

Component 1

Once you pay your registration fee you are granted immediate access to the online school where you can watch videos, listen to audios from previous classes, download all the training materials, take the class exercises and online quizzes.  This way, you can learn at your own pace regardless of when the live, instructor-led classes begin.

Component 2

The second component is the LIVE, instructor-led online classes.  We have ongoing Chapter 7 and Chapter 13 classes that are offered every month.  That way, if you miss a class, you can attend any that you missed in future months when the same class is given.

IN FACT . . .

As a registered student you receive THREE MONTHS OF FREE ACCESS after you enroll in our courses.  This means that you can attend all the live classes a total of 4 times if you wish.  Plus, you have access to all new training materials that are developed for future classes since you are able to login and use the system up to ninety (90) days after your enrollment month.

GET STARTED TODAY and learn the skills you need to improve the services you provide to clients and protect the debtor in the best manner possible.  These are important skills that are rarely taught in any other legal course.  Take advantage of the opportunity to get started now.  Visit:

http://www.mybankruptcyschool.com

If the video does not automatically appear in the area above, click here: http://www.youtube.com/watch?v=nZKjSRJuIQU

MyBankruptcySchool.Com is the first online school developed for bankruptcy attorneys, paralegals and legal professionals to teach Chapter 7 and 13 bankruptcy petition preparation skills.   This video walks you through the benefits provided to students who enroll in the online courses.

DO YOU ENJOY MY VIDEOS?

If you enjoy my short videos specifically designed for Chapter 7 and Chapter 13 bankruptcy attorneys, you can subscribe to my YouTube channel at: http://www.youtube.com/user/MsVictoriaRing Click on SUBSCRIBE at the top of page

– by Victoria Ring, www.victoria-ring.com

From June 13-16, 2010, I had the pleasure of training the First Master Certified Virtual Bankruptcy Assistant (MVBA), Sonya Banks of VirtualPetitions.Com, LLC in Loganville, Georgia. Sonya arrived in Colorado Springs on Sunday, June 13 to begin training for the Master Certification.  Before her arrival, Sonya already had five years of experience working virtually for an attorney but she wanted to expand her services so that she could work for a variety of attorneys and advance her knowledge in bankruptcy and Chapter 13s.

Our training began with an intense review of Chapter 13s and a variety of different Chapter 13 Plans.  I trained Sonya using methods of deep case study in a variety of different consumer-based Chapter 13 filings found online through PACER.  In addition, I downloaded a case study review that is used by the American Bar Institute for the certification of attorneys.  Although many areas of the exam were completely over our heads (since the exam pertained to the logic of the law itself) it was still an excellent way to study cases and understand how they progress and are handled through the bankruptcy court process.

Next, Sonya and I again utilized PACER in the study of different pleadings used in the Complaint process as well as the various Adversarial Proceedings connected with bankruptcy filings.  This skill enables Sonya to be able to study cases and work with attorneys in updating the petition based upon the Trustee Recommendations as well as other problems that can occur after the 341 Meeting.  This level of skill is only achieved by Master Certified Virtual Bankruptcy Assistants.

To finish the training and for a better well-rounded education, I taught Sonya how to design her own website and maintain it.  This will save Sonya literally thousands of dollars and reduce her overhead expenses to zero.  I also taught her many different marketing methods and we customized a marketing plan so that she could return home and put a plan into action immediately.

After the training was complete I asked Sonya to comment about her experience, and her reply was:

This experience has been a life-changing event.  I learned more in 30 hours than most people learn in one year.  One important thing I learned was that I am marketing all wrong and now that I know how marketing works; I have learned how to incorporate it into my daily business routine.  Like Victoria, I have learned how to make marketing fun and exciting and I cannot wait to return home and try some of the ideas I learned.  Also, I feel very confident that I have the skills needed to do a very good job for attorneys and I did not have this confidence before coming to Colorado Springs for training. (Sonya Banks)

SUMMARY

If you are an attorney seeking to outsource your Chapter 7 or Chapter 13 petition work, I highly recommend the services of Sonya Banks and her company.  Not only is she our first Master Certified VBA, but she is a kind, patient and wonderful lady with high moral character.  Your clients, as well as you and your staff will love working with her.  To contact Sonya:

Email: sonya@virtualpetitions.com Phone: 770-601-4730

DOES YOUR LAW FIRM NEED TRAINING?

Review the various training options available to you and your law firm staff at: http://www.coloradobankruptcytraining.com http://www.victoria-ring.com

Seminar Info:  http://www.713training.com/shop/cart.php?m=product_detail&p=120

Let us begin with the visionary for the paralegal industry …

Jeannie Johnston, CEO of Paralegal Gateway http://www.linkedin.com/in/jeanniejohnston Founder and CEO of Paralegal Gateway, Inc. which is the world’s oldest and largest online Paralegal portal and Social Networking vehicle which includes a free career center, free paralegal articles (written by paralegals for paralegals), online seminars, demonstrative evidence, tools for Paralegals and much more.  Jeannie has also been a paralegal for 16 years.  Additionally, she has been a speaker at National Paralegal Conferences, is a Legal Sales Executive as well as a Legal Staffing Consultant.

experts on the CREDITOR side of bankruptcy …

Pamela Starr, CEO of StarrParalegals, LLC http://www.starrparalegals.com/ With 25+ years paralegal experience, StarrParalegals, LLC specializes in providing virtual bankruptcy assistant services specializing in bankruptcy and creditor’s rights.  StarrParalegals, LLC also provides expert services to attorneys, law firms and corporate legal departments.

Michael Misenheimer, Paralegal at Sicay-Perrow, Knighten and Bohan http://sicay-perrow.com/ Michael holds a Masters Degree in Negotiation, Conflict Resolution and Peacebuilding.  He also serves on the Board of Directors for the Georgia Association of Paralegals, the Pro Bono Director and as Community Service Coordinator. Amazingly, Michael has served in this capacity for many years and continues to be re-elected; due to the magnitude of the positive contribution he makes to the organization itself.  Additionally, Michael serves as Pro Bono Co-Coordinator for the National Federation of Paralegal Associations (“NFPA”.)

and for the DEBTOR SIDE of the coin …

Victoria Ring, Developer of the VBA Industry http://www.victoria-ring.com Not only is Victoria the developer of the virtual bankruptcy industry that serves DEBTOR bankruptcy attorneys, she is also the developer of the VBA Exam and founder of the National Association of Virtual Bankruptcy Assistants at NAVBA.ORG.  Victoria is currently working with attorneys in helping to establish new Chapter 7 and Chapter 13 bankruptcy law firms nationwide.

Clay Holland, Certified VBA http://713training.com/clayholland.html Clay is one of the top success stories in the virtual bankruptcy assistant industry.  He started his VBA business in June 2009 and by November 2009 he was making more money than he was at his fulltime job.  Prior to being a successful VBA, Clay had spent 20 years in the computer software business. He also had worked as a mortgage loan officer and is currently a licensed real estate agent.  Additionally, Clay has owned many home businesses over the years but when he found the VBA field, he knew this was the nugget of gold he was looking for.  At the seminar, Clay will reveal his success story and tell you everything he did to build a successful VBA business.

DO NOT MISS THIS IMPORTANT EVENT

This will be the ONLY seminar held in Atlanta, Georgia this year that brings FIVE industry leaders of the VBA and paralegal world together in one place.  Attend this important seminar and get to know these leaders on a personal level. To find out more information or to register, visit:

http://www.713training.com/shop/cart.php?m=product_detail&p=120

SPACE IS LIMITED.  REGISTER EARLY TO ENSURE YOUR RESERVATION.

We all hope to see you there.

Free Federal Forms at http://www.713attorney.com/links/forms.html

The paralegal to a bankruptcy attorney in Pennsylvania called me today to tell me about her experience with Best Case software.  Her attorney is a registered user of Best Case and the paralegal had called them because they had to upgrade their license from a Chapter 7 to a Chapter 7 and 13.

While the paralegal was on the phone with Best Case, she asked the sales person about preparing petitions for attorneys outside of her area.  The sales lady told the paralegal that she could NOT prepare Chapter 13s for any other district except the district the attorney was in.  Even if she prepared a bankruptcy petition that was not in the same district but within the state of Pennsylvania she would have to pay another $150 to $200 for the Chapter 13 Plan.

The paralegal called me because she felt something was wrong and that Best Case had misrepresented the federal forms.  She asked me how Best Case could do this; so I explained to her the scam some bankruptcy software companies are using to sell federal forms.  Of course this scam is one of those legitimate scams.  In case you did not know, a legitimate scam is one where the customer is still ripped off, but the thief operates the scam legitimately.  Best Case is using this age old scam and eventually it will harm them; but who am I to judge?

What is the Scam?

First, you need to be aware that every federal form pertaining to bankruptcy is provided free by the government because consumers have the right to represent themselves. (This is why the first form in a bankruptcy petition is called a Voluntary Petition; the petition is filed by the debtor voluntarily).

Back to the subject, you should never be required to pay for a federal form.  The bankruptcy software companies like Best Case know this; so they sell the federal forms under the disguise that their forms work with their software.  Big deal!  But they will make you think their forms are the best thing since sliced bread so they can sell them to you and laugh all the way to the bank.

The Proof

You can verify that my statements are true by viewing the FREE federal forms I provide on the 713 website at:

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

Every one of these forms are fillable; which means that you can open up the document, click on a line and begin typing in the information on your computer.  This is often faster compared to printing out the document and filling it out by hand.  One tip though:  Only Adobe provides software that makes forms fillable; therefore, you must download the free Adobe Reader in order for the fill-in-the-blank capability to properly work.

How To Use the PDF Version Instead of the Paid Version

Prepare the petition in your bankruptcy software as you normally would. For any forms that are blocked out (such as the Chapter 13 Plan) simply download them from the website link above.  Allow the software to still compile the data and figures for the form; but instead of spending $150 or $200 to purchase an unlock code, simply transfer those figures onto the PDF document and you are good to go.  The PDF will need to be filed separately with the court, but who cares?  For most people, spending 2 extra minutes to save a great deal of money is worth it.

Of course, if you want the convenience of purchasing an unlock code for your bankruptcy software; there is nothing wrong with that.  The part that bothers me is that software companies like Best Case are forcing law firms to believe they cannot even do a Chapter 13 outside of their district unless they purchase a $150 or $200 module of the Chapter 13 Plan.  This is a lie and I would certainly question the integrity of a company that implemented these types of sales tactics just to take money from people.

Pass This Information Along

If the paralegal had not contacted me about this topic today, the law firm could have ended up paying out thousands of dollars for forms they can obtain free from their local bankruptcy court website.

Please pass along this information to any legal or paralegal related groups that you belong to.  Knowledge is power and knowledge in this area will prevent scams like this continuing.  Thanks for your help and support.

The following questions and comments were submitted through email to Victoria Ring. The answers are provided by Victoria Ring who is not an attorney.  Therefore, the information provided in this article is for training purposes only and no whole or part should not be regarded as legal advice.

DEAR VICTORIA:

I have a debtor that owns a home based business.  In addition to what her company grosses, she has paid herself a salary for the past 6 months from her business.  On the Means Test, do I have to average the amount she paid herself from the business (Line 3), and in addition, average the monthly net business income (Line 4)?  Or, do I fill in Line 4, only?  Please help!!! First time I’ve had this situation.   My attorney is waiting for Form.

RESPONSE FROM VICTORIA:

First of all you need to fill out the Business Income and Expense worksheet that is included in most of the bankruptcy software programs. If you are using Best Case software, scroll down to the VERY BOTTOM of the list of forms. There is a folder named SUPPLEMENTAL FORMS.  Inside that folder is a form named BUSINESS INCOME AND EXPENSES.

Fill this form out and make sure it is filed as an attachment to Schedule I when the petition is filed.

Take the AVERAGE NET INCOME (Line 23) and enter this figure into Line 3 of the Means Test.  If you refer to the form you will see that Line 3 states: Net Payroll Other Than Debtor.)  Therefore, you will NOT include the money the debtor pays herself from the business on this particular worksheet form.

Since we now understand this information, we can reasonably deduce that the money the debtor pays to herself needs to be listed on LINE 7 or LINE 13 of Schedule I.  Check with your attorney to be sure.

Also remember to remind the attorney that he or she needs to obtain 6 months of bank statements from the debtor’s business account as well as her personal account.  The attorney will need this to verify the debtors’ earnings reported within the bankruptcy schedules.

Note: In some states, the attorney will simply take the bank statements with them to the 341 Meeting and hand to the Trustee. In other states, when the bank statements are used as pay advices, they would need to be filed with the bankruptcy petition (sometimes the court even requires a cover sheet.)  Always check your local rules of procedure to address questions at this level.

DEAR VICTORIA:

The debtor is married but is filing as an individual.  I included the husbands’ income in the Means Test because they do not live in separate households.  My problem is that I am not sure how to complete the Statement of Affairs for the husband.  I put the wifes income for 2009, 2008, and 2007 but do I also need to include the husband income for the same years even though he is not filing bankruptcy?  I was told only put 2009 for the husband because its only this year that counts for CMI.  It just does not look right to me and I wanted to run it by you.

RESPONSE FROM VICTORIA:

They may do things different in California but in all the petitions I have done (if the husband is not filing) we would place the husband’s income under Item 2 of the Statement of Affairs.  It would be listed as Spousal Contribution.  The husbands income would also be listed under Schedule I as well as the Means Test.

However, you may want to call your local California Help Desk because I have found that California has many strange customs that is totally different from other states.  I learn so much when I visit California, so make sure you check out my response to make sure you are complying with the court rules.

DEAR VICTORIA:

This is my first bankruptcy petition and I need some help.  I am filing a petition for my client and I am in California.  As you know, this is a community property state.  If a husband and wife are divorced and living in separate residences, and the husband wants to file bankruptcy without his wife, will the wife be responsible for the debts that are discharged and the husband does not pay?

RESPONSE FROM VICTORIA:

I did a little online research and I found the following information at http://bankruptcy-law.freeadvice.com/consumer_bankruptcy/spouse_bankruptcy.htm which states (in part):

…. Community property and common law (also called “equitable distribution”) are the two types of martial property ownership. The vast majority of states apply the equitable distribution rules; nine states apply the community property rules. If you live in a common law property state, your spouse’s bankrupt estate will include his/her separate property and half of the jointly-held marital property. The non-bankrupt spouse will not have to worry about the effects of the bankruptcy on his or her separate property.