Mandatory Disclosures in Bankruptcy
Every bankruptcy lawyer is required to make certain mandatory disclosures to clients seeking to file bankruptcy. These disclosures are intended to allow those seeking bankruptcy to make a fully informed decision about bankruptcy and its viability as a potential debt relief solution.
NOTICE NO. 1 Notice Mandated By Section 342(b)(1) and 527(a)(1) Of The Bankruptcy Code
Under federal law, individuals businesses are able to file for:
- Chapter 7 Bankruptcy: A type of bankruptcy that results in a liquidation of nonexempt property and discharge of certain unsecured debts.
- Chapter 11 Bankruptcy: A business bankruptcy that allows for businesses to reorganize their debts and discharge certain remaining debts after an established repayment period.
- Chapter 12 Bankruptcy: This is a type of bankruptcy typically available for family farmers who need financial relief from overwhelming debt.
- Chapter 13 Bankruptcy: This is where a debt repayment plan is created that will allow the debtor to repay his or her debts over a three to five year period and discharge certain remaining debts.
In all these cases attorneys fees are charged as well as filing fees from the Bankruptcy Court.
Any person who knowingly and fraudulently hides assets or makes false states under oath is subject to a fine and/or imprisonment.
Under federal bankruptcy law, you must seek out the services of a credit counseling agency. This agency can help you create a budget, advise you about proper money management techniques and provide educational materials and workshops.
NOTICE NO. 2 Notice Mandated By Section 527 Of The Bankruptcy Code
NOTICE OF MANDATORY DISCLOSURE
All statements and disclosures made in the petition or the bankruptcy case must be complete, truthful and accurate.
When filing for bankruptcy, any and all liabilities and assets must be completely and accurately disclosed. The replacement value of those items must also be provided where requested after a reasonable inquiry.
You must also state your current monthly income.
Section 527(b) Of The Bankruptcy Code states:
“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.”
These disclosures also cover the rules for filing bankruptcy and the requirements of the person filing for bankruptcy including which information you need to provide and the fact that all information must be complete and accurate. They also explain your rights with regard to choosing to hire a bankruptcy attorney or bankruptcy petition preparer.
Working With Our Firm
We will represent you throughout all stages of the bankruptcy proceeding. We want you to help you obtain financial relief as you forward after bankruptcy.
Contact our Phoenix Bankruptcy Attorney today to set up an appointment. Call (602) 648-3274 or send us an email to get started.
We are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code.