Important Notice to Business Clients and Tips for Filing out Information on Your Bankruptcy Documents

PLEASE READ ALL INFORMATION AND INSTRUCTIONS BELOW PRIOR TO STARTING

Rapid Import (also known as StopMyBills.com) is designed for the individual persons, not business debtors.  However, the information requested is the same for both, with only a few exceptions.  Using an existing program to collect the data is the reason that your company's attorney fees are less than half what most other experienced bankruptcy attorneys charge.  So, as you complete this process, answer all questions as though you were your company (and not an individual).

The Bankruptcy Reform Act of 2005 requires that every Debtor provide a complete and accurate listing of all their assets and liabilities (debts).  Should you fail to provide reasonably correct information, then your bankruptcy case can be dismissed and the Court can impose sanctions, including criminal penalties up to 5 years in prison and $250,000 in fines.

Entering the data Using Rapid Import

All data sent and received is encrypted using 128-bit SSI, the highest level of encryption that US export law allows.  Therefore, this is a secure web site - your answers will only be accessible by our office. 

1)      Make sure you are using your company's correct taxpayer number.  DO NO USE YOUR PERSONAL SOCIAL SECURITY NUMBER, UNLESS YOU ARE OPERATING A SOLE PROPRIETORSHIP.  When you log in the Rapid Import program indexes all your information using this taxpayer number.  Substitute a zero for the dash in your company's taxpayer number (for example, a company taxpayer id of 26-123456 should be entered as 260-12-3456 for the Rapid Import "social security #").

2)      You do not need to fill out all the information at one sitting.  This will take several hours to complete, so do it over several days, not all at one time.  You can log out and later go back to complete the form.  Make sure to return through my web site: http://www.dianedrain.com.  Or you can regain access to the form by accessing www.stopmybills.com, and entering the Attorney I.D. "drain." Again – be careful that you use the same taxpayer number used on your first visit, otherwise you will not be able to retrieve the data entered earlier.

3)  All information on your company's bankruptcy documents must come from reliable sources.  You will be asked to determine the value of your assets.  It is your responsibility to obtain these values, so do your best to determine the fair market value of all items listed.

4)    DEBTS: The Bankruptcy Code requires that your company list specific information about each and every one of the company's creditors (those that are owed money or have a contract).  There are two types of creditors: (1) secured creditors have liens on real or personal property (like a mortgage on a property or lien on a car), and (2) unsecured creditors such as credit cards or personal loan.

• Real Property – this means land, home, buildings, time-shares and the like.  Make sure to identify the property.  For example: your  store front would be identified as 2.3 acres, single story, zoned C-1.  List the year and month your company purchased the property.
• Personal property – everything that is not real property. 

a.   Fixtures, goods, equipment or furnishings.  Group similar items together in the data entry box.  Value the items in the data entry box based on the price the item would sell for on eBay, at a yard sale, at a pawn shop, or at a park-n-swap.
b.   Vehicles: list resale value, based on current condition. (See above for a list of websites that provide vehicle values.)  

c.   Accounts Receivable

d.   Insurance policies

e.   Cash on hand and cash in bank accounts.
 

VALUE OF PERSONAL PROPERTY: estimated value is sufficient - such as yard sale value, park-n-swap value, pawn shop value.  If you are unsure of the value of the item, you may wish to take it to a pawn shop to see what they would offer you for it.  See above for a list of resources for valuing vehicles.  Please print or save any supporting information you find here.  Please keep in mind during this process that you determine the value of your company's property, so you need to be comfortable with the values you provide.

LOCATION OF EACH ITEM: please enter "business address" as long as the item is truly at the address you entered for the business.    If the item is at your home, list "principal's address” or another appropriate, accurate address such as "storage unit" or another person's name and address if the item is located at their home or business.

5)      CREDITORS - There are two types of creditors: (1) secured creditors have liens on real or personal property (like a mortgage on your home, or lien on your car); (2) unsecured creditors provide loans such as credit cards, student loans, personal loans, or professional service providers. 

VERY IMPORTANT: REGARDING THE DIRECTIONS IN RAPID IMPORT AS RELATED TO THE ENTRY OF CREDITORS - AFTER YOU HAVE ENTERED A CREDITOR, DO NOT CHECK THE BOX THAT ASKS IF THERE ARE ADDITIONAL COLLECTION OR ADDRESSES.  INSTEAD LIST EACH CREDITOR AND COLLECTION COMPANY'S ADDRESS SEPARATELY.  CALL JAY IF YOU HAVE ANY QUESTIONS.

A "creditor" is anyone that your company owes money to or your company has an obligation to pay (such as a contract - lease, etc).  A "creditor" is also someone who has a current or potential right to sue your company, or is trying to collect a debt that your company owes.  Make sure to list anyone who is a party to a lawsuit, such as other co-defendants (people who are also being sued with you by the creditor), a party to a contract (such as a short sale or agreement to modify a mortgage), list your company's broker/agent from the short sale, and the agent/broker for the other party.  List all insurance companies from any accidents and anyone involved in the accident (driver and passengers), plus their attorneys (if any).  Include these people or entities even if you believe they do not have a right to sue your company.  List debts that have been "written off or charged off" because your company still owes these debts and can be sued if these creditors are not listed. 

It is far better to list too many creditors than to fail to list a creditor who might retain the right to sue your company after bankruptcy. Each entry for a creditor and/or collection company/attorney must include the following:

a)         balance due at this time.  The balance will change over time, but you do not need to worry about the change.

b)         the account number.  Be aware that the collection company's account number may differ from the original creditor's.

c)         the type of debt (mortgage, credit card, personal loan, etc)

d)        any and all addresses that you can find for every creditor, collection company, attorney, etc.  This includes the

           correspondence and payment addresses, plus any others on any correspondence or statement.

e)         the date the debt was incurred (the date your company opened the credit card, or took at the loan)

f)          whether or not someone else is also responsible for the debt, called a co-debtor. Most likely you personally

            guaranteed this debt, therefore you are a co-debtor.

g)         whether or not you dispute the debt (you feel that your company does not owe it because work was not completed, for

            example).

Here is the proper process (1) list the names and addresses for all creditors - using the statements/bills (there are usually 2-4 addresses on the front and back of the statement/bills, (2) then list all creditors or collection companies you have not received bills from in the last 90 days.  To find these addresses use your prior records, and, only if you cannot find any information, then use the Internet.  It is very important that you list the correct addresses for all your company's creditors and collection companies.  If we have a wrong address then the Post Office will return the bankruptcy notice to me.  I will then return it to you.  You must then obtain a better address, send it to us, we then file it with the Bankruptcy Court.  This office and the Court will charge a fee for filing those additional documents. 

a)    Creditor’s Name

b)    All addresses you have for this creditor.  There are usually 2-3 addresses on any statement or bill.  Make sure to check the front, back, and all the fine print.**see below**  If you have several credit cards or debts with the same creditor list all account numbers on the same address entry.  There is no reason to list an address more than once.  To list additional addresses for a creditor, click "yes" on has this debt been assigned to anyone else, and you'll be provided space for up to two more names and addresses of creditors (list collection companies here).  If you need to list additional collection companies or addresses, you'll need to add another creditor and repeat these steps.

c)    Account number **NOTE: a collection company's account number may be different than the original creditor's account number.

d)    Date incurred: (this is the date you opened the account, you can sometimes find this date on your credit report)

e)    Amount due: (Do not worry about the amount changing; do not round numbers; use the amount due on the most current statement that you have.)  List the latest amount owed by the original creditor - otherwise it will appear that you owe far more than you really do.  Do not list the collection company as being owed any money; list them as "notice only" because you only list them on the original creditor's entry.

f)     Why your company owes this debt? Select this from the drop-down menu entitled "Why does your company owe this debt?" (car, house, credit card, medical bill, etc...)

g)    If this account has been assigned to another company, such as a collection agency or attorney, you will need the following information: Assignee Name, address, and account number.  List "notice only" in the amount owed or leave blank.  Make sure to list the amount owed ONLY once (on the original creditor's entry).

h)    If anyone else co-signed on this debt you will need the following information: their name, address, and any additional names they may have used in the last 6 years.

*If you have more than 2 addresses or collection companies to add for a creditor, please add them as a new creditor and refer to them as “COLLECTION COMPANY -or- ATTORNEY FOR [fill in the creditor’s name]”

How to list collection companies:

ABC Collection Company
Address
Account number
Notice Only - do not list any amount (that should have been listed for the original creditor)
Collection company for (name of original creditor)

** VERY, VERY, IMPORTANT!! THE LAW REQUIRES THAT YOU LIST ALL ADDRESSES AND ACCOUNT NUMBERS IN ANY STATEMENTS / BILLS / CORRESPONDENCE RECEIVED FROM THE CREDITORS AND THEIR COLLECTION COMPANIES IN THE LAST 90 DAYS AND/OR AVAILABLE FROM ANY OTHER SOURCE (CREDIT REPORT, MAIL OLDER THAN 90 DAYS, PHONE BOOK, OR INTERNET).  IF YOU DO NOT, THEN THE CREDITOR’S DEBT MAY NOT BE ERASED AS PART OF YOUR BANKRUPTCY!** If your creditor does not receive notice of your bankruptcy, then they are able to sue you after your bankruptcy is completed.  WE EXPECT TO SEE 3-4 ADDRESSED FOR ALL CREDIT CARDS.

6)   Leases and executory contracts: list all leases and contracts: this includes leases of apartments, cell phones, gym memberships, etc.

PLEASE READ - THIS IS VERY IMPORTANT: At the end of filling out all the information you can press "complete".  At that time an e-mail will be sent to our office indicating that you are done entering all the data.  THEREFORE, DO NOT PRESS COMPLETE unless you are really done. Please call our office if you have questions that are not answered on this page. 

If you press "complete" and then realize that you forgot some information you must call us to make certain that we have not already downloaded your data. Once we have downloaded your data you must not make any changes in the Rapid Import information, because the changes not be included in the documents on file with our office. Call us for directions on how to handle this situation. 

As always, call me if you have any questions.  YOU ARE NOT ALONE IN THIS COMPLEX PROCESS!

Diane L. Drain