bankruptcy checklist

BANKRUPTCY CHECKLIST

Chapter 7

Chapter 13 Unsecured debts under $336,900, secured debt under $1,010,650; Disposable income sufficient to fund the plan. (These figures are tied to the consumer price index.)

1. JURISDICTION

Resided in district for the majority of the last 180 days before filing Previous Chapter 7 filings discharged within 8 years (Date: ) Previous Chapter 7 or Chapter 13 voluntary dismissal of case by debtor in which

Motion for Relief from Stay filed, dismissal must be more than 180 days prior to filing of new case

Venue (If debtor has not lived in Oregon for the past two years, exemptions used for bankruptcy purposes are where the debtor lived the majority of time between two and two and a half years ago.)

Automatic stay (If one previous bankruptcy case is dismissed within one year of filing current case, automatic stay terminates in 30 days. If two or more cases dismissed within one year of filing current case, no automatic stay goes into effect. Debtor must move to continue stay or reimpose stay.)

2. IDENTIFY ALL DEBT

Non-dischargeable debt Student loans

Not dischargeable unless undue hardship (Hardship is difficult to prove, but partial discharge is possible.)

Tax debt Determine date of filing or assessment and tax due date, including extensions,

offers to compromise, previous bankruptcies Fines/penalties/tickets Fraud, intentional, DUII, fiduciary duty, etc. Restitution Child/spousal support Abusive use of credit cards Debt assigned to bankruptcy spouse in General Judgment in divorce not

dischargeable (only applies to Chapter 7, not Chapter 13.)

Business debt Business still operating Corporation/partnership or sole proprietorship

Marital dispute / separation or divorce pending or imminent Spouse/ex-spouse as creditor Property settlement obligation owed

[21Apr23 Rev 9/08] PROFESSIONAL LIABILITY FUND (BANKRUPTCY CHECKLIST.DOC)

DISCLAIMER: This checklist is not intended as a comprehensive worksheet, but as an aid to the attorney, and will require the use of additional forms and investigation as judged necessary by the attorney.

Unsecured priority creditors (CLIENT TO PROVIDE LIST) Taxes, employee withholdings Deposits for others Wages of employees Child support, spousal support Other

Unsecured non-priority creditors (CLIENT TO PROVIDE LIST) Names/addresses/amount owed Judgments/lawsuits pending Preference payments to any creditors Co-signors, joint debtors identified Business or consumer Liquidated or unliquidated Disputed or uncontingent Guarantees Loans owed to closely held business Obligations to pay debt owed to ex-spouse(s) pursuant to judgment

Secured creditors (CLIENT TO PROVIDE LIST) Names/addresses Value of secured property Value of security interest Any unsecured portion Debtor’s intent regarding secured property Business or consumer property secured Judgments Garnishments Recent purchase of automobile (Check title work to ensure done properly to avoid

avoidance of lien by trustee.)

3. ASSETS

All assets identified Joint or common property identified

Real property Personal property (all objects owned)

Items held for debtor by third party Items held by debtor for third party Property settlement, spousal support, child support Cash Bank/brokerage/credit union accounts Stocks/bonds/investments Interest in closely held business/corporation Tax, rental, or other refunds Pension/ retirement/stock options Other


Intangible property Personal injury claims by debtor against third parties Other claims by debtor against third parties Earned but unpaid wages due

debtor from employer Inheritance pending or likely in the future (right to receive within 6 months of

filing date) Assets not yet acquired, but acquisition imminent - dates established Executory contracts Sales, transfers, or gifts of property within one year Loans owed by closely held business Property settlement owed Other

NOTE: The debtor must disclose claims that exist prior to the filing of the petition, regardless of whether a claim is pending in a court proceeding or has yet to be pursued in any way, and regardless of whether the debtor is even aware of the claim. 11 U.S.C. Section 521.

Failure to list actual or potential claims may preclude the debtor from pursuing the claim later in a non-bankruptcy action. Ask the debtor:

Have you been in an automobile accident in the last two years? Have you ever suffered an injury at work? Have you ever been terminated from your employment? Do you think you could sue anyone for anything? Have you ever filed a claim against an insurance company that you

think was wrongfully denied? Are you involved in a probate matter or expecting to inherit

something shortly? Have you ever consulted any other lawyer for any other purpose?

For more information, see Personal Injury Claims and Bankruptcy, PLF In Brief, February 2008. Available online at www.osbplf.org.

4. EXEMPTIONS (ORS Chapter 18)

Homestead/mobile home Books, pictures, musical instruments Wearing apparel, jewelry Tools of trade Vehicles Animals Household goods Public property Health aids Spousal/child support Victim’s assistance Personal injury claim/future earnings [$10,000 exemption allowed for personal injury claims] Miscellaneous exemptions Public benefits, i.e., Social Security, workers’ compensation, welfare Certain assets deposited in bank up to $7,500 Wages Retirement plans/pensions/stock options


http://www.osbplf.org/

Firearms Other

5. ATTORNEYS

All attorneys identified Attorney fees disclosed Attorney fees shared (disclosed) Funds in attorney trust accounts OJIN search conducted to identify potential pending claims debtor may not have disclosed Attorney requirements met

Initial retainer agreement within 5 days of first meeting with client(s) Notify client(s) of debt relief agency disclosure within 3 days of offering services (Section

527(a)(2)) Obtain copies of tax returns for prior year Obtain last 6 months of pay stubs from client(s) to calculate CMI (current monthly income) File last 60 days of pay stubs with trustee Obtain Credit Counseling Certificate from client(s) prior to filing and file with court Client(s) to sign 342(b) notice prior to filing

6. STATUS OF DEBTOR

Income (Must have income from all sources in the last 6 months.) Specific expenses/disposable income established Judgment proof?

7. LIEN AVOIDANCE

Non purchase money security interest in household goods Judgment lien that impairs homestead exemption

8. OTHER ISSUES

Transfers within last 4 years Payments to creditors within 90 days Payments to insiders within 1 year Repossessions, foreclosures pending Charitable contributions within last year Secured transactions perfected properly (i.e. car title) Timing of filing Discharge for Chapter 13 same as Chapter 7 with exceptions under

11 USC 523(a)(15). Generally the same with limited exceptions. Void judicial liens (judgments) that impair debtor’s homestead exemption Amend personal property and exemption schedules if needed to include any claims by

debtor against third parties not included in original bankruptcy filing. Promptly notify trustee in writing.

9. EFFECTS OF BANKRUPTCY

Credit Automatic stay Other


10. CLOSING LETTER Send closing letter to debtor confirming that your representation is concluded Return debtor’s original documents (keep copies for your file) Inform debtor how long you will keep your file and when it will be destroyed Include warning about claims discovered after discharge: “If you later determine that you have

a claim against someone regarding events that happened before your bankruptcy, even if you learn of your claim after your bankruptcy, contact me immediately. The claim may not belong to you, and it may be necessary to reopen your bankruptcy case.”


ELECTRONIC CASE FILING:

Set your spam or junk e-mail filters to allow receipt of e-notices from the Bankruptcy Court. Otherwise, you may miss an important deadline or notice. You may need to make this change at the Internet Service Provider (ISP) level and in the settings of your specific e-mail program. Example: Assume Verizon is your ISP and Microsoft Outlook® is your e-mail program. Log on to your e-mail account with Verizon at www.verizon.net, and change the spam settings using Verizon’s “Spam Detector.” Do the same with Outlook by changing your junk e-mail options (specific steps vary depending on which version of Outlook you are using.) These steps assure that neither your ISP (Verizon) nor your e-mail program (Outlook) will block e-mail from the Bankruptcy Court.

In addition, you may want to create an agent or rule in your e-mail program to forward copies of e-notices to your staff if they are not automatically receiving them from the Bankruptcy Court.

INTERNET RESOURCES FOR BANKRUPTCY RULES, FEES, AND FORMS:

US Bankruptcy Court for the District of Oregon:Home page: www.orb.uscourts.gov/Rules/Orders/Forms: http://www.orb.uscourts.gov/. Click on Forms/Filing.

Also see the federal judiciary website, www.uscourts.gov/bkforms/index.html for generic forms which must be revised to conform to local rules.

http://www.uscourts.gov/bkforms/index.html

http://www.orb.uscourts.gov/

http://www.orb.uscourts.gov/

http://www.verizon.net/

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