Retention of Udall, Shumway & Lyons, PLC

Retention of Udall, Shumway & Lyons, PLC

Dear New Client,

Udall, Shumway & Lyons PLC helps people file for bankruptcy relief under the Bankruptcy

Code. Under the current Bankruptcy Code, we are required to provide you with the enclosed

bankruptcy notices and disclosures. These enclosures provide you with a brief description of

bankruptcies filed under Chapters 7, 11, 12, and 13, and the general purpose, benefits, and costs of

proceeding under each of those chapters. Also enclosed is a brief description of the types of services

available from credit counseling agencies.

Please be advised that a person who knowingly and fraudulently conceals assets or makes a

false oath or statement under penalty of perjury in connection with a bankruptcy case shall be subject

to a fine, imprisonment, or both. Further, all information that you provide in connection with your

bankruptcy case is subject to examination by the attorney general. By signing below, you

acknowledge this possibility and understand that we may be required to disclose information which

you provide. For this limited purpose only, you hereby waive the attorney-client privilege.

All information that you are required to provide in order for us to complete your petition,

bankruptcy schedules, statement of financial affairs, and responses to inquiries from United States

Trustee’s Office, the Bankruptcy Court, or Panel Trustee, during your bankruptcy case must be

complete, accurate, and truthful. You are required to completely and accurately disclose all assets

and all liabilities, and provide the replacement value of each asset. With respect to property acquired

for personal, family, or household purposes, replacement value shall mean the price a retail merchant

would charge for property of that kind considering the age and condition of the property at the time

the value is determined, after reasonable inquiry in order to establish such value.

You will also be required to provide evidence of your current monthly income and expenses in

order to determine whether there is a presumption of abuse pursuant to 11 U.S.C. § 707. Any and all

information that you provide in order to complete your bankruptcy documents may be audited.

Failure to provide complete and accurate information may result in the dismissal of your case and/or

subject you to sanctions, including a criminal sanction.

Prior to the commencement of your bankruptcy case, you will be required to complete a credit

counseling course. You must complete this credit counseling course within 180 days prior to filing

your bankruptcy petition.

www.udallshumway.com

30 West First Street • Mesa, Arizona 85201-6654 • 480.461.5300 FAX 480.833.9392

WRITER’S DIRECT LINE: 480-461-5304 EMAIL: [email protected]

Approximately 20-40 days following the commencement of your bankruptcy case, you will

also be required to appear in person at the Bankruptcy Court for a First Meeting of Creditors. Prior to

this meeting, you will be contacted by your Bankruptcy Trustee and required to provide him or her

with copies of various documents, including but not limited to, tax returns, bank statements, and

check pay stubs. Also at the First Meeting of Creditors, you will be required to provide two forms of

identification and documentation verifying who you are as well as your social security numbers. If

you do not have a valid Arizona driver’s license, or social security card, please contact this office

immediately. The First Meeting of Creditors usually lasts no longer than 10-15 minutes.

Following your First Meeting of Creditors, you will be required to complete a course in

Personal Financial Management. You must complete the course in order to receive a discharge in

bankruptcy. If you file a Chapter 7 bankruptcy, you are required to complete this Personal Financial

Management course within 45 days after the First Meeting of Creditors and file the Certificate of

Course Completion with the Bankruptcy Court. If you file a Chapter 13 bankruptcy, you are required

to complete the Personal Financial Management course no later than by the last payment made by

you pursuant to your Plan of Reorganization or the filing of a Motion for Entry of Discharge in a

Chapter 13 case. Enclosed is information concerning online post-bankruptcy education, pre-

registration instructions and procedures.

Another important change under the current Bankruptcy Code concerns secured debt,

specifically automobile loans. You may be requested to execute a reaffirmation agreement concerning

your indebtedness that has serious consequences affecting your ability to discharge that debt.

Before work begins on your case, you will also receive our Bankruptcy Representation

Agreement. Please review this agreement, and if acceptable, execute where indicated and return it to

this office as soon as possible. As always, please call me if you have any questions.

Very truly yours,

Matthew L. WhiteMatthew L. WhiteMatthew L. WhiteMatthew L. White

Matthew L. White

www.udallshumway.com

30 West First Street • Mesa, Arizona 85201-6654 • 480.461.5300 FAX 480.833.9392

INFORMATION REQUIRED BY UDALL, SHUMWAY & LYONS PLC

BEFORE YOUR CASE IS FILED

1. The completed Bankruptcy Intake Form. (ALL information must be complete and accurate)

2. Signed FAC Consumer Authorization and Release

3. Signed Important Information About Bankruptcy Disclosure

4. Signed Full Disclosure and Accuracy Disclosure

5. Real Estate Valuation Letter or Copy of Lease Agreement for Real Property. (You may find this

information on Zillow.com or your current Property Tax Notice)

6. Copies of ALL pay stubs for the last 6 months.

7. For business owners only: Profit and Loss statement for the last 6 months broken down month by month.

8. Copies of your 2008, 2009, and 2010 (as soon as they are filed) federal and state tax returns with W-2s for

you and your spouse.

9. Copies of the last two year tax returns of any corporation or partnership in which you are a partner or

shareholder.

10. Date and amount you received of your last tax refunds. __________________ $_______________

11. Copies of ALL auto, boat, motor home, mobile home and any other recreational vehicle titles and/or

registrations.

12. Proof of current insurance on all autos, boats, motor homes, mobile homes, and recreational vehicles. (A

copy of your current insurance card(s) will suffice)

13. Proof of current insurance on all real estate (your home owner’s insurance policy)

14. Copies of any divorce decrees, child support orders and property settlements entered by a court during

the last 10 years to which you were a party.

15. Copies of the last statements you received from your pension, IRA, 401k, profit sharing plan, or any other

retirement/investment accounts. (This needs to be a current statement)

16. Two monthly statements from each creditor (medical, credit card, mortgage, auto, etc.).

17. The last six monthly statements from each of your bank accounts.

18. Kelley Blue Book – Private Party Value on all vehicles with or without a lien.

19. Credit Counseling Certificate(s).

20. Copy of Driver’s License and Social Security Card.

You must inform our office if you expect to receive an income tax refund for the current tax year. If so, how

much do you expect to receive? If you fail to inform us then the Court may attempt to seize your refund and

distribute it to your creditors.

Please provide COPIES ONLY of all documentation listed above. Thank you.

* When making copies of the above listed documents, please adhere to the following guidelines: (1) Make 2 copies. You will need a

complete set of these documents to forward to your Trustee prior to your 341 Hearing; (2) DO NOT make double-sided copies, as

the Court will not accept them; (3) DO NOT use staples. Please paperclip each category of documents together, i.e., bank

statements, tax returns, etc.: (4) PLEASE ORGANIZE your documents in accordance with the above list. We appreciate your

courtesy and compliance with these requests. These efforts on your part save a tremendous amount of time and help our office

serve you more efficiently.

**Additionally, we suggest you obtain a copy of your credit reports. You can download a free copy on the website:

www.annualcreditreport.com. We do not look through your credit reports. This is for your benefit. Having a complete list of

creditors is YOUR responsibility.

IMPORTANT INFORMATION ABOUT BANKRUPTCY

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY 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.

1. 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.

2. Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

ACKNOWLEDGEMENT OF RECEIPT By my signature below, I acknowledge that I have been given a copy of the disclosure required by Bankruptcy Code § 527(b). Dated: Dated:

www.udallshumway.com 30 West First Street • Mesa, Arizona 85201-6654 • 480.461.5300 FAX 480.833.9392

FULL DISCLOSURE AND ACCURACY If you file bankruptcy –

A. The information that you provide to your attorney, the bankruptcy trustee, and the court in the course of your bankruptcy, both before and after you file your bankruptcy petition, must be complete, accurate and truthful.

B. All of your assets (everything you own that has value, such as real estate, personal items,

vehicles, money, etc.) and all of your liabilities (all of your debts) are required to be completely and accurately disclosed in the documents filed to start your case, and the replacement value of each asset must be stated in those documents where requested after reasonable inquiry to establish their value. The value should be your best understanding of how much it would cost you to replace the item in the same or similar condition.

C. You must provide your attorney with a monthly budget, including your current monthly income,

all of your expenses, and the amount of your income that is left over after deduction of expense. In listing your income and expenses, try to avoid guessing or estimating, and do your best effort to be accurate and truthful.

For income, you are required to provide information about all sources of your income, including your employment, and government assistance you may receive, social security, pension or other retirement income, income form side jobs, investment income, and similar sources.

D. The information that you provide to your bankruptcy attorney, the bankruptcy trustee, or the bankruptcy judge may be audited and will be available for inspection by the office of the United States Trustee, which is a branch of the U.S. Department of Justice. If you fail to honestly and fully provide information about your property, income, expenses, and other financial circumstances, your case could be dismissed, and you could be subject to criminal sanctions.

ACKNOWLEDGEMENT OF RECEIPT By my signature below, I acknowledge that I have been given a copy of the disclosure required by Bankruptcy Code § 527(a). Dated: ____________________ X__________________________________ Dated: ____________________ X__________________________________

www.udallshumway.com 30 West First Street • Mesa, Arizona 85201-6654 • 480.461.5300 FAX 480.833.9392

BEFORE FILING YOUR BANKRUPTCY CASE: YOU ARE REQUIRED TO CALL ONE OF THE CREDIT COUNSELING COMPANIES ON THE ATTACHED “PRE-BANKRUPTCY” LIST, AND COMPLETE AN ONLINE CREDIT COUNSELING COURSE. THE COST VARIES WITH EACH COMPANY, SO YOU MAY CONTACT ANY OF THEM AT YOUR DISCRETION TO COMPARE COST. IF THEY CHARGE MORE THAN $50.00 PER DEBTOR, THAT IS TOO MUCH. EACH DEBTOR WILL NEED TO COMPLETE THIS COURSE BEFORE FILING YOUR CASE. ONCE YOU HAVE COMPLETED THIS COURSE, HAVE A CERTIFICATE OF COMPLETION FOR EACH DEBTOR FAXED TO OUR OFFICE AT 480-615-2983. AFTER FILING YOUR BANKRUPTCY CASE: YOU ARE REQUIRED TO CONTACT ONE OF THE COMPANIES ON THE ATTACHED “POSTBANKRUPTCY” LIST AND COMPLETE A FINANCIAL COUNSELING COURSE. THE COST FOR THIS COURSE VARIES, THEREFORE, YOU MAY CONTACT ANY OF THEM AT YOUR DISCRETION TO COMPARE COST. EACH DEBTOR WILL NEED TO COMPLETE THIS COURSE. YOU WILL NOT RECEIVE A DISCHARGE WITHOUT TAKING THIS SECOND COURSE. ONCE YOU HAVE COMPLETED THIS COURSE, HAVE A CERTIFICATE OF COMPLETION FOR EACH DEBTOR FAXED TO OUR OFFICE AT 480-615-2983.

PRE-BANKRUPTCY CREDIT COUNSELING Allen Credit and Debt Counseling Agency 888-415-8173 195 Brooks St. East www.acdcas.com Wessington, SD 57381 Alliance Credit Counseling, Inc. 888-594-9596 13777 Ballantyne Corporate Pl. www.knowdebt.org Suite 100 Charlotte, NC 28277 Money Management International, Inc. 877-918-2227 9009 West Loop South www.moneymanagement.org 7th Floor Houston, TX 77096-1719 POST-BANKRUPTCY DEBTOR EDUCATION COUNSELING AAA Personal Finance Education 877-222-4547 2525 N. Los Altos Avenue #433 www.aaapersonalfinance.com Tucson, AZ 85705 Advantage Credit Counseling Service, Inc. 888-511-2227 River Park Commons www.advantageccs.org 2403 Sidney St. Suite 400 Pittsburgh, PA 15203 Alliance Credit Counseling, Inc. 888-594-9596 13777 Ballantyne Corporate Pl. www.knowdebt.org Suite 100 Charlotte, NC 28277

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Bankruptcy Intake Form

Chapter: 7 13 (circle one) Date Dropped Off: 1. VOLUNTARY PETITION: Name of Debtor: All other names (trade names, maiden names, etc.) used by Debtor in the last 6 years: Social Security Number: Birth date: ________________________________ Street Address: City: State: Zip: Mailing Address: City: State: Zip: Home Phone: Work Phone: Cell Phone: Name of Joint Debtor: All other names used by Joint Debtor in the last 6 years: Social Security Number: Birth date: ________________________________ Street Address: City: State: Zip: Mailing Address: City: State: Zip: Home Phone: Work Phone: Cell Phone: Have you ever filed bankruptcy before? If yes, Name filed under: Chapter: Court: Exact date filed: / / Case No: Discharged? A. REAL PROPERTY: (Home, Rental Property, etc.) – (It is imperative that you mark your intent regarding each item) First Property Description: First Property Address: City: State: Zip: Market Value: $ First Mortgage Holder Name: Amount Owing: $ Address: City: State: Zip: Account Number: INTENT: Retain Surrender Reaffirm Any arrearages? (how much?) $ Monthly Payment: $______________________

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Second Mortgage Holder Name: Amount Owing: $ Address: City: State: Zip: Account Number: INTENT: Retain Surrender Reaffirm Any arrearages? (how much?) $ Monthly Payment: $_________________ Second Property Description: Second Property Address: City: State: Zip: Market Value: $ First Mortgage Holder Name: Amount Owing: $ Address: City: State: Zip: Account Number: INTENT: Retain Surrender Reaffirm Any arrearages? (how much?) $ Monthly Payment: $________________ Second Mortgage Holder Name: Amount Owing: $ Address: City: State: Zip: Account Number: INTENT: Retain Surrender Reaffirm Any arrearages? (how much?) $ Monthly Payment: $_______________ B. PERSONAL PROPERTY: Description: Market (Garage Sale) Value: 1. Cash on hand: $ 2. Checking/Savings account(s): Bank name: $ Type of account: Account #: Bank name: $ Type of account: Account #: Bank name: $ Type of account: Account #: 3. Security Deposits (landlords/utilities, etc.) $ Type/Location:

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4. Household furnishings/major appliances: $ (List ALL household furnishings and fixtures (each item) separately): 5. Books/Pictures/Collectibles: $ Description: 6. Clothing: $ 7. Furs/jewelry: Wedding Ring(s)? $ Watch(es) (how many?): $ Any other jewelry? $ Description: 8. Firearms/Sports/Photography equipment: $ Description: 9. Cash Value of insurance policies: $ Carrier: Type of policy: 10. Annuities: $ Provider: 11. Education IRA or qualified state tuition plan: $ Provider: 12. Cash Value of IRA/ERIS/Keogh/401(k)/ $ pension plans (circle one): Provider: Provider: 13. Stocks or interests in businesses: $ Description:

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14. Interests in partnerships or joint ventures: $ Description: 15. Government or corporate bonds: $ Describe: 16. Accounts Receivable: $ Products/Services rendered: Terms of Contract: 17. Alimony/Child Support you receive (circle one): $ 18. Tax Refunds/other monies due to you: $ Please discuss with us if you think you may receive a refund!!! YOU WILL LIKELY LOSE IT!! 19. Life estate interests: $ 20. Interest in estate of decedent/ death benefit plan/life insurance/trust: $ Explain: 21. Other monies owed to Debtor, including $ potential or actual lawsuits: Describe: 22. Patents/copyrights/intellectual property: $ Describe: 23. Licenses/franchises: $ Describe: 24. Customer lists or other compilations containing $

personally identifiable info: Describe:

25. Automobiles/trucks/trailers/other vehicles: (This MUST be completed for each vehicle) Year: Make: Model: Value:$ Lien? (list below) Date purchased: Lien Holder: _______________ Monthly Payment: $___________

Year: Make: Model: Value:$ Lien? (list below) Date purchased: Lien Holder: _______________ Monthly Payment: $___________

Year: Make: Model: Value:$ Lien? (list below) Date purchased: Lien Holder: _______________ Monthly Payment: $___________

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26. Boats/motors/accessories: $ Description: 27. Aircraft/accessories: $ Description: 28. Office equipment/furnishings/supplies: $ Description: 29. Machinery/fixtures/equipment/business supplies: $ Description: Lien? (list below) 30. Business Inventory: $ Describe: 31. Animals: $ Type: Breed: 32. Crops (growing or harvested): $ Describe: 33. Farming equipment and implements: $ Describe: 34. Farm supplies/chemicals/feed: $ Describe: C. SECURED CLAIMS (e.g., land/vehicles/furniture/appliances/jewelry): YOU MUST MARK YOUR INTENT

1. Creditor Name: Amount Owing: $ Address: City: State: Zip: Account Number: Description of Collateral: INTENT: Retain Redeem Reaffirm Surrender Monthly Payment: $__________

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2. Creditor Name: Amount Owing: $ Address: City: State: Zip: Account Number: Description of Collateral: INTENT: Retain Redeem Reaffirm Surrender Monthly Payment: $__________ 3. Creditor Name: Amount Owing: $ Address: City: State: Zip: Account Number: Description of Collateral: INTENT: Retain Redeem Reaffirm Surrender Monthly Payment: $__________ 4. Creditor Name: Amount Owing: $ Address: City: State: Zip: Account Number: Description of Collateral: INTENT: Retain Redeem Reaffirm Surrender Monthly Payment: $__________ D. PRIORITY CLAIMS: Taxes owing to:

Internal Revenue Service Year(s) incurred: Amount Owing: $ Type of tax:

Arizona Department of Revenue Year(s) incurred: Amount Owing: $ Type of tax:

Child Support or Spousal Maintenance Amount: $ Period for which wages are owed: Name of employee: Address: City: State: Zip: E. UNSECURED CREDITORS: (Credit cards/medical/signature loans/vendors, etc.)

**LIST EVERY CREDITOR TO WHOM YOU OWE MONEY, WHETHER OR NOT YOU INTEND TO PAY THE DEBT

BEFORE OR AFTER FILING**

PLEASE USE THE CORRESPONDENCE ADDRESS - NOT THE PAYMENT ADDRESS

1. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 2. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed?

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3. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 4. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 5. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 6. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 7. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 8. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 9. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 10. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 11. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed?

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12. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 13. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 14. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 15. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 16. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 17. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 18. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 19. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 20. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed?

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21. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 22. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 23. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 24. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? 25. Creditor Name: Address: City: State: Zip: Account Number: Amount of Claim: IS THIS DEBT: Contingent Unliquidated Disputed? F. LEASES or Executory Contracts: Lease/Contract 1: Other Party Name: Address: City: State: Zip: Monthly Payment: Start Date: End Date: What is the lease for? (ex. Business, residence, vehicle, etc.) Lease/Contract 2: Other Party Name: Address: City: State: Zip: Monthly Payment: Start Date: End Date: What is the lease for? (ex. Business, residence, vehicle, etc.) G. CO-DEBTORS on listed claims or if you have co-signed for anyone else: Co-debtor name: Address: City: State: Zip: Creditor name: Address: City: State: Zip: Comments:

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H. CURRENT INCOME (List all the information about your current income):

Marital Status (circle one): Single Married Divorced Separated Widowed Debtor’s Current Employer:

Address: Occupation: How long Employed: Joint Debtor’s Current Employer: Address: Occupation: How long Employed:

Dependents: Relationship: Age:

Relationship: Age: Relationship: Age: Relationship: Age: Relationship: Age:

Do you currently receive your income (check one):

Debtor Joint Debtor Daily Weekly Bi-Weekly Semi-Monthly Monthly Earnings Gross Wages: Estimated overtime: Deductions Taxes and SS: Insurance: Union Dues: Other Deductions:

Usual take-home pay List any other income you receive not from employment:

Operation of Business Income from Real Property Interests and Dividends Alimony/Support Payments SS or other Gov. Assistance Pension / Retirement Other (specify)

List any expected changes in income within the following year of filing.

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I. CURRENT EXPENSES List your average monthly expenses (if you and your spouse are not filing bankruptcy together, list separately any regular monthly contribution your spouse makes to the following household expenses): Debtor Joint Debtor Rent or mortgage 1st Mortgage payment: 2nd Mortgage payment: Are real estate taxes included? ____Yes / No____ Is property insurance included? ____ Yes / No____ Electricity and Heat Water and Sewer Telephone Other Utilities: Cell Phone Internet Cable TV / Satellite Security System HOA Home maintenance (repairs and upkeep) Food (cash you spend on food) Clothing Laundry and dry cleaning Medical and dental expenses Transportation (not including car payments) Recreation, Entertainment Charitable contributions Insurance (not deducted from wages) Homeowner’s or renter’s Life Health Auto Other Taxes (not deducted from wages or included in mortgage payment) Specify: Installment payments Auto 1 (Car Note) Auto 2 (Car Note) Other Other Alimony, maintenance or support payments Other payments for support of dependents Expenses for operating your business Other expenses (list types of expenses e.g., security system, school, daycare) Identify:

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FORM 7: PART 1. STATEMENT OF FINANCIAL AFFAIRS: 1) List your income from employment only: Debtor Joint Debtor (YTD) Income for 2010: Source (employer(s)): Income for 2009: Source (employer(s)): Income for 2008: Source (employer(s)):

2) List any other income you’ve received not from employment: Debtor Joint Debtor (YTD) Income for 2010: Source: Income for 2009: Source: Income for 2008: Source: 3) List any payments to creditors you have made within the last 90 days totaling more than $600: Creditor Date of payment Address Amount paid Amt still owing 4) List any law suits, garnishments or executions in which you have been a defendant of in the last year: Caption and Case # Nature of Proceeding Court and Location Status and Disposition 5) List any property that has been repossessed, foreclosed or returned within the last year: Creditor Action date Address Description and value of property 6) List any assignment of property for the benefit of creditors within the last 120 days: Creditor Date of assignment Address Terms of assignment

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7) List all gifts or charitable contributions made within the last year totaling more than $200: Recipient Relationship to debtor Address Date of gift Desc. & Value 8) List any losses from fire, theft, gambling or other casualty within the last year: Description and value of property Description of circumstances

Was it covered by insurance? Explain Date 9) List any payments related to debt counseling or bankruptcy not including Udall, Shumway & Lyons PLC or

your credit-counseling certificate company: Recipient Date of payment Address Amount of money Reason 10) List all other property transferred either absolutely or as security within the last 2 years: Recipient Relationship to debtor Address Transfer date Descript. & Value 11) List all financial accounts which were closed, sold or otherwise transferred within the last year: Institution Type and # of account Address Date of closing Final amount 12) List each safe deposit or other box where you have securities, cash, or other valuables within the last year: Institution Description of contents Address Date of transfer (if any) Names of those who have access 13) List all setoffs made by any creditor against a debt or deposit within the last 90 days: Creditor Date of setoff Address Amount of setoff 14) List any property you are holding for another person: Owner Description & value Address Location

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15) List all prior addresses within the last 3 years: Address Names used Dates of occupancy beginning: ending: Address Names used Dates of occupancy beginning: ending: 16) List any former spouses of both the debtor and joint debtor within the last 8 years: Debtor’s former spouse(s) Joint debtor’s former spouse(s) FORM 7: PART 2. DEBTOR(S) ENGAGED IN A BUSINESS (Please fill in the information

regarding your current or previous businesses): 18) Name of Business Address Complete EIN or other taxpayer # Nature of business Beginning date Ending date 19) List any bookkeepers or accountants that have kept or supervised records on any accounts in the last 2

years: a) Bookkeepers and accountants Name of accountant

Address of accountant

Dates services were rendered

b) Firms / Individuals who have audited books Name of accountant



c) Firms / Individuals possessing books Name of accountant



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d) All parties to whom a financial statement was issued Name of accountant



20) List the information for the last 2 inventories taken on your property: a) Date of inventory Inventory supervisor Amount of inventory Custodian b) Date of inventory Inventory supervisor Amount of inventory Custodian 21) List any current partners, officers, directors and shareholders of the business: Name Nature of interest Address Percentage of interest 22) List any former partners, officers, directors and shareholders of previous businesses: Name Nature of interest Address Percentage of interest 23) List all withdrawals or distributions credited or given to an insider within the last year: Recipient Relationship Address Amount of money Date & purpose 24) List the information of the Parent Corporation of any consolidated group for tax purposes that you have

been a member of in the last 6 years: Name of Parent Corporation Taxpayer Identification Number (EIN) 25) List the information of any pension fund to which you have been responsible for contributing at any time

within the last 6 years: Name of Pension Fund Taxpayer Identification Number (EIN)

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Answers to Common Bankruptcy Questions A decision to file for bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial problems. This brochure cannot explain every aspect of the bankruptcy process. If you still have questions after reading it, you should speak with an attorney familiar with bankruptcy. What Is Bankruptcy? Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. What Can Bankruptcy Do for Me? Bankruptcy may make it possible for you to:

� Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts. It is designed to give you a fresh financial start.

� Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)

� Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

� Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.

� Restore or prevent termination of utility service.

� Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

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What Bankruptcy Can Not Do Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:

� Eliminate certain rights of “secured” creditors. A “secured” creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally can not keep the collateral unless you continue to pay the debt.

� Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and some taxes.

� Protect cosigners on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.

� Discharge debts that arise after bankruptcy has been filed.

What Different Types of Bankruptcy Cases Should I Consider? There are four types of bankruptcy cases provided under the law:

� Chapter 7 is known as “straight” bankruptcy or “liquidation.” It requires a debtor to give up property, which exceeds certain limits called “exemptions,” so the property can be sold to pay creditors.

� Chapter 11, known as “reorganization,” is used by businesses and a few individual debtors whose debts are very large. Our office does not file Chapter 11.

� Chapter 12 is reserved for family farmers and fishermen. Our office does not file Chapter 12.

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� Chapter 13 is called “debt adjustment.” It requires a debtor to file a plan to pay debts (or parts of debts) from current income.

Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly. Chapter 7 can also be used for small businesses. OUR OFFICE ONLY FILES CHAPTER 7 OR CHAPTER 13 CASES. If your income is above the median income for a family the size of your household in your state, you may have to file a chapter 13 case. A higher-income consumer must fill out “means test” forms requiring detailed information about income and expenses. If, under standards in the law, the consumer is found to have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that the consumer can not file a chapter 7 case, unless there are special extenuating circumstances. Chapter 7 (Straight Bankruptcy)

In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property, which the law allows you to keep. In most cases, all of your property will be exempt. But property, which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt. Chapter 13 (Reorganization)

In a chapter 13 case you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property--especially your home and car--which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors. In most cases, these payments will be at least as much as your regular monthly payments

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on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind. You should consider filing a chapter 13 plan if you

1. own your home and are in danger of losing it because of money problems;

2. are behind on debt payments, but can catch up if given some time; 3. have valuable property which is not exempt, but you can afford to pay

creditors from your income over time. You will need to have enough income in chapter 13 to pay for your necessities and to keep up with the required payments as they come due. What Does It Cost to File for Bankruptcy? The Bankruptcy Court filing fees are $299 to file for bankruptcy under chapter 7 and $274 to file for bankruptcy under chapter 13, whether for one person or a married couple. The court may allow you to pay this filing fee in installments if you cannot pay all at once. If you are unable to pay the filing fee in installments, you may request that the court waive the filing fee. If you hire an attorney you will also have to pay the attorney’s fees you agree to. What Must I Do Before Filing Bankruptcy? You must receive budget and credit counseling from an approved credit counseling agency within 180 days before your bankruptcy case is filed. The agency will review possible options available to you in credit counseling and assist you in reviewing your budget. Different agencies provide the counseling in-person, by telephone, or over the Internet. If you decide to file bankruptcy, you will need to file with the bankruptcy forms in your case a certificate from the agency stating that you received the counseling. If you decide to go ahead with bankruptcy, you should be very careful in choosing an agency for the required counseling. It is extremely difficult to sort out the good counseling agencies from the bad ones. Many agencies are legitimate, but many are simply rip-offs. And being an “approved” agency for bankruptcy counseling is no guarantee that the agency is good. It is also important to understand that even good agencies won’t be able to help you much if you’re already too deep in financial trouble.

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Some of the approved agencies offer debt management plans (also called DMPs). This is a plan to repay some or all of your debts in which you send the counseling agency a monthly payment that it then distributes to your creditors. Debt management plans can be helpful for some consumers. For others, they are a terrible idea. The problem is that many counseling agencies will pressure you into a debt management plan as a way of avoiding bankruptcy whether it makes sense for you or not. It is important to keep in mind these important points:

� Bankruptcy is not necessarily to be avoided at all costs. In many cases, bankruptcy may actually be the best choice for you.

� If you sign up for a debt management plan that you can’t afford, you may end up in bankruptcy anyway (and a copy of the plan must also be filed in your bankruptcy case).

� There are approved agencies for bankruptcy counseling that do not offer debt management plans.

It is usually a good idea for you to meet with an attorney before you receive the required credit counseling. Unlike a credit counselor, who cannot give legal advice, an attorney can provide counseling on whether bankruptcy is the best option. If bankruptcy is not the right answer for you, a good attorney will offer a range of other suggestions. The attorney can also provide you with a list of approved credit counseling agencies, or you can check the website for the United States Trustee Program office at www.usdoj.gov/ust. What Property Can I Keep? In a chapter 7 case, you can keep all property which the law says is “exempt” from the claims of creditors. In Arizona, we use exemptions under state law. These exemptions include:

� $150,000 in equity in your home;

� $5,000 in equity in your vehicle;

� $4,000 in household goods;

� $2,500 in things you need for your job (tools, etc.);

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� $150.00 of cash on hand or in a bank account. PLEASE NOTE THAT ON THE DATE OF FILING A CHAPTER 7, IF YOU HAVE MORE THAN $150.00 IN YOUR BANK ACCOUNTS ON THAT FILING DATE, YOU WILL HAVE TO PAY BACK THE TRUSTEE ANY AMOUNT OVER $150.00. THERE IS NO EXCEPTION TO THIS RULE. IF YOU HAVE CHECKS THAT HAVE NOT CLEARED ON THE DATE OF FILING, YOU NEED TO LET YOUR ATTORNEY KNOW THIS. YOUR CASE SHOULD NOT BE FILED UNTIL THOSE CHECKS HAVE CLEARED. IF YOU HAVE A DIRECT DEPOSIT PAYCHECK THAT WILL BE GOING INTO YOUR ACCOUNT ON THE DATE OF FILING, YOU SHOULD NOT FILE ON THAT DATE.

� All of your retirement money (except for funds contributed within 120 days prior to filing for bankruptcy);

� Your right to receive certain benefits such as social security, unemployment compensation, veteran’s benefits, public assistance, and pensions--regardless of the amount.

The amounts of the exemptions (except for the home) are doubled when a married

couple files together. In determining whether property is exempt, you must keep a few things in mind. The value of property is not the amount you paid for it, but what it is worth now. Especially for furniture and cars, this may be a lot less than what you paid or what it would cost to buy a replacement. You also only need to look at your equity in property. This means that you count your exemptions against the full value minus any money that you owe on mortgages or liens. For example, if you own a $50,000 house with a $40,000 mortgage, you count your exemptions against the $10,000, which is your equity if you sell it. While your exemptions allow you to keep property even in a chapter 7 case, your exemptions do not make any difference to the right of a mortgage holder or car loan creditor to take the property to cover the debt if you are behind. In a chapter 13 case, you can keep all of your property if your plan meets the

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requirements of the bankruptcy law. In most cases you will have to pay the mortgages or liens as you would if you didn’t file bankruptcy. What Will Happen to My Home and Car If I File Bankruptcy? In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13. However, some of your creditors may have a “security interest” in your home, automobile or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. Bankruptcy does not make these security interests go away. If you don’t make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case. There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt. If you put up your household goods as collateral for a loan (other than a loan to purchase the goods), you can usually keep your property without making any more payments on that debt. Can I Own Anything After Bankruptcy? Yes! Many people believe they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

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Will Bankruptcy Wipe Out All My Debts? Yes, with some exceptions. Bankruptcy will not normally wipe out:

1. money owed for child support or alimony, other divorce-related debts, fines, and some taxes;

2. debts not listed on your bankruptcy petition; 3. loans you got by knowingly giving false information to a creditor,

who reasonably relied on it in making you the loan; 4. debts resulting from “willful and malicious” harm; 5. most student loans, except if the court decides that payment would be

an undue hardship; 6. mortgages and other liens which are not paid in the bankruptcy case

(but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).

Will I Have to Go to Court? Yes, you will have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation. Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court and/or from our office. What Else Must I Do to Complete My Case? After your case is filed, you must complete an approved course in personal finances. This course will take approximately two hours to complete. Our office can give you a list of organizations that provide approved courses. If you file a chapter 13 case, you should ask your attorney when you should take the course. Will Bankruptcy Affect My Credit? There is no clear answer to this question. Unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse.

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The fact that you’ve filed a bankruptcy can appear on your credit record for ten years. But because bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills, and you may be able to get new credit. What Else Should I Know? Utility services--Public utilities, such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills, which arise after bankruptcy is filed. Discrimination--An employer or government agency cannot discriminate against you because you have filed for bankruptcy. Driver’s license--If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back. Co-signers--If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt. If you file a chapter 13, you may be able to protect co-signers, depending upon the terms of your chapter 13 plan. When first meeting a bankruptcy attorney, you should be prepared to answer the following questions:

� What types of debt are causing you the most trouble?

� What are your significant assets?

� How did your debts arise and are they secured?

� Is any action about to occur to foreclose or repossess property or to shut off utility service?

� What are your goals in filing the case?

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Can I File Bankruptcy Without an Attorney? Although it may be possible for some people to file a bankruptcy case without an attorney, it is not a step to be taken lightly. The process is difficult and you may lose property or other rights if you do not know the law. It takes patience and careful preparation. Chapter 7 (straight bankruptcy) cases are easier. Very few people have been able to successfully file chapter 13 (debt adjustment) cases on their own. Remember: The law often changes. Each case is different. This pamphlet is

meant to give you general information and not to give you specific legal advice.

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