As of October 17, 2005, the laws for Chapter 7 and Chapter 13 bankruptcy have changed.  The current law will make it harder, however, not impossible to file bankruptcy.  In Pro Per DPS is prepared and ready to assist you under the new bankruptcy laws.  We are a debt relief agency that assists debtors to file bankruptcy under the Federal bankruptcy code.  Bankruptcy services at In Pro Per DPS will be split into two phases in order to abide by the new laws.

Phase I

The new law prohibits a debtor or assisted person to be assisted over the phone.  Therefore, In Pro Per DPS will conduct a bankruptcy eligibility test at our office.  The debtor will be advised to bring certain items to the eligibility test.

The following items are required for the debtor to bring to the office for review:

• 6 months of pay stubs from their employment, self-employment wages, social security, unemployment, welfare, food stamps, child support and all other income sources;
• Federal and State Income Tax returns for the past 2 years;
• Utility bills, rent receipts, car notes, mortgage, receipts for transportation or gasoline and all other proof of monthly household expenses paid;
• The client's expenses will be reviewed and the IRS guidelines regarding expenses will be applied to determine if the client's expenses are above or below the acceptable standards;
• A monthly budget will be performed for the client which includes their income and expenses.  A copy will be provided to the client for their records;
• The debtor will be required to have a credit report retrieved from our reliable credit reporting resource;
• The client will provide all bills, statements or collection letters from the creditors;
• The client's debts and credit report will be reviewed and discussed.  Any applicable tests under the new law will be performed accessing the clients monthly income after deducting expenses vs. the client's debts;
• A list of all assets to determine their market value (asset valuation), including cars, household furnishings, jewelry, 401k plans, IRAs, etc.  (A client with a 401k, pension plan, IRA or any deferred compensation plan must bring their most current statement).;
• The client must provide at least six months of pay stubs or income to perform the "means test" to determine Chapter 7 eligibility;
• A determination will be made whether after reviewing all of the clients information if there is a "presumption of abuse" (the test to determine whether an individual can file Chapter 7 bankruptcy);
• The client will be advised regarding the different chapters in bankruptcy to determine which chapter applies to their current situation;
• The client will be referred to a credit counseling agency that they will be able to attend in person or via the internet.

This evaluation process costs $75 and will take approximately 1 hour to complete.  At the conclusion of the interview, the client will be advised whether they qualify for bankruptcy and under what chapters they qualify.  The client will also be provided with copies of all tests performed concerning the client's income, budget and assets.  In Pro Per will also refer the client to a credit counseling agency in their area.

Phase II

Once the client has completed credit counseling, the client must return with the certification from the counseling center that they have fulfilled the necessary requirements.  At this time, In Pro Per can begin Phase II of the bankruptcy process under the new law.  This credit counseling certification proof is obtained from the client and later filed with the bankruptcy court with the bankruptcy papers.  Please note that unless the client is not required to file income taxes, all clients  must have their most recent year's income taxes completed prior to filing.

Bankruptcy preparation charges for both Chapter 7 will be the following:

Chapter 7 - Indivdual Petition (one person/one spouse of the marriage) - $400

Chapter 7 - Individual Petition with attorney representation - $1,000 (this does not include the court filing fee and fees for credit counseling and debtor education)

Chapter 7 - Joint Petition (married or separated couple) $600

Chapter 7 - Joint Petition  with attorney representation - $1,200 (this does not include the court filing fee and fees for credit counseling and debtor education)

After the bankruptcy papers are filed, the client will still be required to attend a hearing before the bankruptcy trustee called a 341(a).  Prior to attending the hearing, the trustee will require the client to provide copies of their tax returns or tax transcripts from the IRS.  Under the new laws, the trustee can request other documents to support the client's eligibility under the bankruptcy laws.  If the documents are not provided to the trustee in a timely manner, the new laws allow the trustee to dismiss the case.  In Pro Per will promptly provide any documents, including tax returns, to the Chapter 7 trustee.

Prior to obtaining a discharge of the client's debts, a credit education course will be required within 45 days of the 341(a) hearing.  If the client fails to complete debtor education within this time frame, the Chapter 7 bankruptcy case can be dismissed with a 180 day bar to refiling.  If you neglect to complete the final credit counseling requirement, you can still obtain a discharge of your debt and get that fresh start.  In Pro Per can further assist you by filing a Motion to Reopen your Chapter 7 case to allow you to complete and file the certificate with the court to obtain the discharge of your debt.  This process costs $300 with a filing fee to the court of $260.

In Pro Per will assist the client during the course of their bankruptcy case to provide the necessary documents, declarations and assist the client in responding to questions from the trustee and/or bankruptcy court.

In Pro Per has successfully completed and filed over 1,000 Chapter 7 bankruptcies!  Because of our high success rate and experience, we know exactly how the court requires the papers to be prepared.  Because you will be assisted by an attorney, we can assist you in preparing for your 341(a) hearing before the Chapter 7 trustee.

Please call In Pro Per DPS today at (562) 498-8429 for an eligibility appointment. Or email us at info@inproperdps.com