BANKRUPTCY BASICS
Bankruptcy Information
WHAT TO EXPECT
Discuss with your attorney your goals in filing the case.
2. Cooperate with your attorney in preparing all required bankruptcy papers and
documents, thoroughly reviewing drafts of documents, and advising your attorney
2 of corrections needed.
3. Provide your attorney with all documentation he or she requests, including but not
limited to accurate copies of the following documents:
a. Certificate of Credit Counseling, together with the debt repayment plan, if
any, prepared by the nonprofit budget and credit counseling agency that
provided individual counseling services to you prior to bankruptcy.
b. Proof of income you received from all sources in the 6-month period before
your case was filed. Some examples include paycheck stubs, Social
Security statements, worker’s compensation payments, income from rental
property, pensions, disability payments, self-employment income, child and
spousal support, and other payments. If you are self-employed or own a
business, you should provide report(s) disclosing monthly income and
expenses for the 6-month period before the case was filed.
c. Federal and state income tax returns, or transcripts of returns, for the most
recently ended tax year, as well as any other returns requested by your
attorney.
d. Proof of your identity and Social Security number. Some examples are
your driver’s license, passport, or other document containing your
photograph.
e. A record of your interest, if any, in an educational individual retirement
account or a qualified State tuition program.
f. The name, address and telephone number of any person or state agency to
whom you owe back child or spousal support or make current child or
spousal support payments. Include all supporting documents for the
payments. Some examples of supporting documents are a court order, a
declaration of voluntary support payments, a separation agreement, a
divorce decree, and a property settlement agreement.
g. Any insurance policies requested by your attorney.
h. Documents relating to any inheritance to which you are entitled.
i. Documents relating to any legal action in which you are a party.
II. AFTER THE CASE IS FILED, YOU AGREE TO TIMELY AND
PROMPTLY COMPLY WITH ALL APPLICABLE CHAPTER 7 RULES
AND PROCEDURES, INCLUDING BUT NOT LIMITED TO:
3 1.
Attend the § 341(a) meeting of creditors at the time(s) ordered.
2. Keep the Chapter 7 trustee and your attorney informed of your current address and
telephone number and employment status.
3. Inform your attorney of any wage garnishments, seizure of assets or liens that
occur or continue after the filing of your bankruptcy case.
4. Provide copies of all federal tax returns or transcripts to your attorney when
requested, and pay over to your attorney or the trustee, as directed, the nonexempt
portion of any tax refunds.
5. Contact your attorney promptly if you are sued on a scheduled debt or if you file a
lawsuit or intend to settle any dispute relating to events that occurred prior to the
filing of your bankruptcy case.
6. Provide on a timely basis all information or documentation requested by your
attorney, including all information needed to respond to any motion or objection
seeking relief in your bankruptcy case.
7. Provide your attorney with any tax returns, account statements, pay stubs, or other
documentation necessary to comply with any audit requests.
8. Respond promptly to all communications from your attorney.
III.
BEFORE THE CASE IS FILED, YOUR ATTORNEY AGREES TO
PROVIDE ALL SERVICES NECESSARY FOR REPRESENTATION,
INCLUDING BUT NOT LIMITED TO:
Attorney will personally*:
1. Meet with you to review your assets, liabilities, income, and expenses.
2. Counsel you regarding the advisability of filing either a chapter 13 or a chapter 7
case, discuss bankruptcy procedures, and answer your questions.
3. Review the completed petition, statements, schedules, and all amendments with
you.
4. Explain to you the attorney’s fees that are being charged in the case, how and
when those attorney’s fees are determined and paid, and whether additional fees
will be charged for representation in adversary proceedings that might be filed in
the case, or in the event the case is converted to another Chapter.
5. Provide a fully signed copy of this document to you.
4 With the assistance of staff under his or her supervision, your attorney will:
6. Verify the number and status of any prior bankruptcy case(s) filed by you or any
related entity.
7. Timely prepare and file your petition, statements, schedules, required documents
and certificates, and all necessary amendments to these filings.
* The term “personally” means that the described service will be performed only by an
attorney who is a member in good standing of the Bar and admitted to practice before the
bankruptcy court. The service shall not be performed by a non-attorney even if that
individual is employed by the attorney and is under the direct supervision and control of
that attorney.
IV.
1. Advise you of the requirement to attend the § 341(a) meeting of creditors and
inform you of the date, time, and place of the meeting. In the case of a joint filing,
inform you and your spouse that both of you must appear at the meeting.
2. Inform you that you must be punctual for the § 341(a) meeting of creditors or the
meeting may be continued to a later date.
3. Attend the § 341(a) meetings and any court hearings, either personally or through
another attorney from his or her firm or through an appearance attorney who has
been adequately briefed on the case.
4. Advise you if an appearance attorney will stand in for him or her at the § 341(a)
meeting or any court hearing, and explain to you in advance, if possible, the role
and identity of the appearance attorney. In any event, it is your attorney’s
responsibility to adequately prepare the appearance attorney for the meeting or
hearing by providing all documents and information in sufficient time to allow for
proper representation of you.
5. Notify you on a timely basis if any pleading seeking relief against you is filed.
This notification shall specify a deadline by which you should contact your
attorney to discuss a response to the pleading and may state that if you do not
contact the attorney timely, such attorney may choose not to file a response. Such
notification should explain the potential consequences of not filing a response to
the pleading.
6. If your attorney is contacted by you on a timely basis, as provided in paragraph 5,
5 such attorney will timely respond in an appropriate manner to any pleading
seeking relief against you.
7. Prepare, file, and serve on a timely basis any necessary amended statements and
schedules and any change of address, based on information provided by you.
8. Monitor all information filed in your case for accuracy and completeness.
9. File objections to claims when appropriate.
10. Prepare and file a proof of claim for a creditor when appropriate.
11. Advise you of the effect of proposed reaffirmation agreements and, where
appropriate, negotiate alternate terms with secured creditors.
12. Attend any hearing scheduled by the court on a reaffirmation agreement,
regardless whether such attorney has signed off on the agreement.
13. Unless otherwise agreed before the bankruptcy case is filed, your attorney will
represent you in adversary proceedings, including but not limited to objections to
discharge and/or dischargeability. Unless otherwise agreed before the case is
filed, your attorney will also continue to represent you if the case is converted to
another Chapter of the Bankruptcy Code. The attorney is not, however, obligated
to represent you in an appeal to another Court.
14.
If your attorney has not been retained to represent you in adversary proceedings,
and an adversary proceeding is then filed against you, the attorney will, within 7
days after receiving notice of the adversary proceeding, explain to you the
estimated cost of providing representation in the adversary proceeding, the risks
and consequences of an adverse judgment, and the risks and consequences of
proceeding without counsel. In addition, the attorney shall advise you of the date
by which a response to the adversary proceeding is due in order to avoid a
judgment being entered against you based on your failure to respond. And, the
attorney shall advise whether you may be eligible to participate in a program in
your part of the district to provide eligible debtors with attorneys at no or reduced
charge, and who to contact about participation in such a program.
15. Prepare, file, and serve any other motion that may be necessary to appropriately
represent you in the bankruptcy case, including but not limited to motions to
impose or extend the automatic stay.
16. Respond promptly to your questions and communications for the duration of the
case, and provide all other legal services that are necessary for the proper
administration of the bankruptcy case.
6
17. Advise you of the requirement to complete an instructional course in personal
financial management, and the consequences of not doing so.
18. Represent you at a discharge hearing, if required.
19. Represent you in connection with any audit request.
V. ALLOWANCE AND PAYMENT OF ATTORNEYS’ FEES
You and your attorney agree that the fee for all legal services to be provided in the
bankruptcy case will be $__________. You agree to pay this fee. This fee does/does not
(circle the appropriate verb) include representation in adversary proceedings and
does/does not include representation if the case is converted to another Chapter. (If
neither is designated, representation is included).
If you dispute the legal services provided or the fees charged by your attorney, you may
file an objection with the Court. Should your attorney’s continued representation create a
hardship, such attorney may seek a court order allowing him or her to withdraw from the
case. Under Local Rule 2091-1, such attorney will not be allowed to withdraw until
another attorney enters the case, unless good cause is shown for the withdrawal.
Client’s Signature. By signing this agreement, you certify that you have read the
agreement and understand and agree to carry out the terms of the agreement to the best of
your ability, and that you have received a signed copy of the agreement.
Attorney’s Signature. By signing this agreement, your attorney certifies that, before the
case was filed, he or she personally met with you and counseled and explained to you all
matters as required by this agreement.
