Bankruptcy is a federal legal process for debt relief. There are two types of bankruptcy for individuals and small businesses: a Chapter 13 (pay back program) and a Chapter 7 (wipe out the debt). Under the bankruptcy code the emphasis is towards the filing of a Chapter 13. To file a Chapter 7 your income must fall below certain income limitations which are explained below.
The attorney fees and costs for a bankruptcy depend on which one is most appropriate for you. To see an estimate of the initial attorney's fees our office charges please see our Fees page. Gregory L. Davies will discuss the attorney's fees and cost in complete detail when you meet with him to discuss your probate needs.

Gregory L. Davies, Attorney has been assisting clients with bankruptcy matters since 1980. Gregory L. Davies, Attorney and our staff are experienced in helping our clients through one of the most difficult time in their lives.

To find out more about how our law firm can help you with your debt relief matters, contact Gregory L. Davies, Attorney at Law in Everett, Washington. Call (425) 259-2755 or email us.

The law firm of Gregory L. Davies is a "debt relief agency" pursuant to the US Bankruptcy Code.



Income Limits:

The amount of gross income each income earner has in the family will determine, in part, whether you can file a Chapter 7 bankruptcy (extinguish the debt) or whether you must file a Chapter 13 bankruptcy (debt repayment plan). In Washington State, as of March 15, 2010, the annual limits per earner in the household are as follows:

Family Size

• 1 earner: $51,161
• 2 People: $63,930
• 3 People: $72,275
• 4 people: $82,422

Information verification:

The bankruptcy code and the bankruptcy court requires verification of the information you provide in your bankruptcy petition and schedules. It is your responsibility to verify the factual accuracy and my responsibility to verify the legal basis for everything contained in your bankruptcy filings. In addition, the bankruptcy code and the bankruptcy court require me to make a "reasonable inquiry to verify that the information contained in the bankruptcy filing is [1] well grounded in fact; and [2] warranted by existing law. I will be required to certify that I have "performed a reasonable investigation into the circumstances that gave rise to the petition, pleading, or written motion," and that I have determined that the petition or the pleading is "well grounded in fact" in warranted under the law and that the petitioner pleading is not an abuse under 707 B-1.

Therefore, my office requires you to provide the following information:

1. A complete list of all your property and assets.


2. A complete list of all of your debts and liabilities.


3. A current credit report. You are entitled to one free credit report per year and can obtain one on line from Free Credit Report.com or contact one of the following:
   
   Equifax - P.O. Box 740241, Atlanta, GA 30374-0241
   Tel. 1-800-685-1111 or 1-800-378-2732 www.equifax.com
   
   Experian (formerly called TRW) - P.O. Box 2104, Allen, TX 75013-0949
   Tel. 1-888-3978-3742 www.experian.com
   
   Trans Union Corp. - 760 W. Sproul Road, Springfield, PA 19064-0390
   Tel. 1-800-916-8800 or 1-800-888-4213 www.tuc.com
   
   If you want us to obtain a credit report for you, we will need a release from new as well as $50.


4. Copies of your pay stubs for the past six months.


5. Copies of the last two years of your IRS income tax returns. If you do not have these available we can order a set from the IRS. We’ll have to get a release from you as well as $50.

Pre-bankruptcy credit briefing Within 180 days before filing bankruptcy:

The bankruptcy code requires you to participate in an individual or group briefing from an approved nonprofit budget and credit counseling agency within 180 days before filing bankruptcy. As a condition of filing bankruptcy, you must file with the court a certificate from the agency. If you do not complete the credit counseling before you file your case you case may be dismissed without refund of any filing fees paid to the court. A list of the currently approved credit counseling agencies can be found at http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm


File tax returns:

Both Chapter 7 and Chapter 13 debtors are required to give to the trustee, before the first meeting of creditors and to any creditor requesting it, a copy of their most recent year's federal tax return. Failure to provide the return requires dismissal of the case unless the debtor can show that failure is due to circumstances beyond the debtor's control.

Chapter 13 debtors must file all required tax returns prior to the meeting of creditors. If this is not done the trustee may delay the meeting of creditors only for 120 days to permit the filings. Failure to file will result in dismissal of your case. You must file your tax returns annually during the pendency of the Chapter 13.

Debtor education:

During the pendency of your bankruptcy you are required to complete a personal financial management course in order to receive a discharge. A list of the currently approved personal financial management course providers can be found at http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm


Notice:

You are required to file a certificate with your bankruptcy filing that you have been given the notice required by section 342 [b]. This notice is attached to this packet of materials.

Completion of all schedules:

You must complete and file all required schedules within 45 days of filing the bankruptcy or your case will be dismissed. You may be able to get an additional 45 day extension.

Statement of intention:

Within 30 days of the first meeting of creditors, a Chapter 7 debtor must perform the stated intention of surrender, redemption or reaffirmation Or assume an unexpired lease. Failure to do so will result in stay relief. In addition, a Chapter 7 debtor may not retain the possession of purchase money collateral beyond 45 days from the first meeting of creditors without regaining the collateral or reaffirming the debt.

Education retirement account:

If you have an interest in education individual retirement account or a qualified state tuition program, you must disclose that interest at the time of filing the schedules.

Identification:

At the first meeting of creditors you will be required to provide two forms of identification: [1] a valid government issued picture ID and [2] your social security card or any official document showing your social security number.

I am required to provide you with the following information:

1. Disclosure of services attorney will provide (see our fee agreement attached)
2. An explanation of the benefits and risks that may result in filing bankruptcy
3. Provide you with a written fee agreement
4. Provide you with the clear and conspicuous written notice advising you that:
   
   [A] all information that the assisted person is required to provide with a petition and thereafter during a case under this title is required to be complete and truthful;
   
   [B] all assets and all liabilities are required to be completely and accurately disclosed in the documents filed to commence the case, and the replacement value of each asset as defined in section 506 must be stated in those documents where requested after reasonable inquiry to establish such value;
   
   [C.] current monthly income, the amount specified in section 707 (B)(2) and, in a case under chapter 13 of this title, disposable income [determined in accordance with section 707 (B)(2)], are required to be stated after reasonable inquiry; and
   
   [D.] information that an assisted person provides during their case may be audited pursuant to this title, and that failure to provide such information may result in dismissal of the case under this title or in other sanction including a criminal sanction.


5. See section 527 [b] required disclosure notice.


6. We will provide you with a bankruptcy questionnaire that prompt you to provide us the information we request as well as
   
   how to value assets at replacement value
   how to determine current monthly income under 707 (B)(2)
   how to determine disposable income under 707 (B)(2)
   how to complete the list of creditors to include the amount owed and the complete address
   how to determine what property is exempt
   how to value exempt property at replacement value

The attorney is required to keep all information for two years.

The attorney must place in all advertisements "we are a debt relief agency. We help people filed for bankruptcy relief under the bankruptcy code."


If you are a domestic support creditor you have a right to use support enforcement and collection agencies regardless of the filing of bankruptcy. You are also entitled to have disclosure of the debtor's current address as well as the debtor's current employer and address.

Presumption of abuse:

If the presumption of abuse that arises under the test does not apply in a particular Chapter 7 case, or if the presumption arises but is sufficiently rebutted then the court shall consider whether the petition was otherwise filed in bad faith or whether the totality of circumstances involving the debtor's financial situation demonstrates an abuse. In the totality of circumstances examination, section 707 (B)(3) directs that the court consider "whether the debtor seeks to reject a personal services contract and the financial need for such rejection as sought by the debtor."

Chapter 13:

If you owe a domestic support obligation that first becomes payable after the date of the filing of the Chapter 13 petition, and you fail to pay that obligation your Chapter 13 may be dismissed.

You Chapter 13 petition may be dismissed if you fail to file a tax return that is required to be filed.

You will be allowed to pay less then 100% of your domestic support obligation, that is assigned to a governmental unit, if you pay all of your disposable income to the Chapter 13 trustee for a five-year period

You are required to file all necessary tax returns for the four years preceding the filing of your bankruptcy petition and they must be filed no later than the first meeting of creditors.

You are required to provide your most recent pre-bankruptcy tax returns to the trustee no later than seven days prior to the first meeting of creditors.

You are also required to file all tax returns that are due during the pendency of the Chapter 13 case.