(a) A
debt relief agency providing
bankruptcy assistance to an
assisted person shall provide—
(1) the written notice required under section
342(b)(1); and
(2) to the extent not covered in the written notice
described in paragraph
(1),
and not later than 3 business days after the first date
on which a
debt relief agency first offers to provide any
bankruptcy assistance services to an
assisted person, a clear and conspicuous written notice
advising
assisted persons 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, accurate, 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 amounts 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 other sanction, including a criminal sanction.
(b) A
debt relief agency providing
bankruptcy assistance to an
assisted person shall provide each
assisted person at the same time as the notices required
under subsection
(a)(1)
the following statement, to the extent applicable, or one
substantially similar. The statement shall be clear and
conspicuous and shall be in a single document separate from
other documents or notices provided to the
assisted person:
"IMPORTANT INFORMATION
ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN
ATTORNEY
OR BANKRUPTCY PETITION PREPARER.
"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.
"The following information helps you understand what must
be done in a routine bankruptcy case to help you evaluate
how much service you need. Although bankruptcy can be complex,
many cases are routine.
"Before filing a bankruptcy case, either
you or your
attorney
should analyze your eligibility for different forms of
debt
relief available under the Bankruptcy Code and which form
of relief is most likely to be beneficial for you. Be sure
you understand the relief you can obtain and its limitations.
To file a bankruptcy case, documents called a Petition,
Schedules, and Statement of Financial Affairs, and
in some cases a Statement of Intention need to be prepared
correctly and filed with the bankruptcy court. You will
have to pay a filing fee to the bankruptcy court. Once your
case starts, you will have to attend the required first
meeting of
creditors
where you may be questioned by a court official called a
"trustee" and by
creditors.
"If you choose to file a chapter
7 case,
you may be asked by a
creditor
to reaffirm a
debt.
You may want help deciding whether to do so. A
creditor
is not permitted to coerce you into reaffirming your
debts.
"If you choose to file a chapter
13
case in which you repay your
creditors
what you can afford over 3 to 5 years, you may also want
help with preparing your chapter
13
plan and with the confirmation hearing on your plan which
will be before a bankruptcy judge.
"If you select another type of relief
under the Bankruptcy Code other than chapter
7 or
chapter
13,
you will want to find out what should be done from someone
familiar with that type of relief.
"Your bankruptcy case may also involve
litigation. You are generally permitted to represent yourself
in litigation in bankruptcy court, but only
attorneys,
not
bankruptcy petition preparers,
can give you legal advice.".
(c) Except to the extent the
debt relief agency provides the required information
itself after reasonably diligent inquiry of the
assisted person or others so as to obtain such information
reasonably accurately for inclusion on the petition, schedules
or statement of financial affairs, a
debt relief agency providing
bankruptcy assistance to an
assisted person, to the extent permitted by nonbankruptcy
law, shall provide each
assisted person at the time required for the notice
required under subsection
(a)(1)
reasonably sufficient information (which shall be provided
in a clear and conspicuous writing) to the
assisted person on how to provide all the information
the
assisted person is required to provide under this title
pursuant to section
521, including—
(1) how to value assets at replacement value, determine
current monthly income, the amounts specified in section
707(b)(2) and, in a chapter
13 case, how to determine disposable income in accordance
with section
707(b)(2) and related calculations;
(2) how to complete the list of
creditors, including how to determine what amount is
owed and what address for the
creditor should be shown; and
(3) how to determine what property is exempt and
how to value exempt property at replacement value as defined
in section
506.
(d) A
debt relief agency shall maintain a copy of the notices
required under subsection
(a) of
this section for 2 years after the date on which the notice
is given the
assisted person.
(Added Pub. L.
109-8, Title II, Subtitle C, §
228(a), April 20, 2005, 119 Stat. 70; Pub. L.
111-327, § 2(a)(21), Dec. 22, 2010, 124 Stat.
3560.)
|
