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BANKRUPTCY · UNITED STATES CODE
Creditors, the Debtor and the Estate
Subchapter II. Debtor's Duties and Benefits
USC § 527. Disclosures
(a) A debt relief agency providing bankruptcy
assistance to an assisted person shall provide--
(1) the written notice required under section
(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
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, as well as 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
[Printable 527(b) statement.]
(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
(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
(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.