New Client Packet for Initial Consultation

Transcription

1 New Client Packet for Initial Consultation Contains: Disclosure Packet, Client Questionnaire, and Creditor Spreadsheet Instructions: Please read the instructions at the front of each section and fill in the forms as instructed. Staple each of the three packets in numerical order. Make sure to bring all forms with you to your initial consultation, as well as a picture I.D. and your social security card. Additional Information: If you would like to complete these forms electronically, you may download them individually from our website. If you would like additional information on the bankruptcy process, there are many resources available to you on the Documents page of our website. Robert A. Canfield, Esq. Hunter R. Wells, Esq. Canfield, Baer & Heller, LLP West End Office 2201 Libbie Avenue, Suite 200 Richmond, VA Phone: (804) Fax: (804) Hopewell Office 201 East Broadway Avenue Hopewell, VA Phone: (804) Fax: (804)

2 Disclosure Packet Instructions: Please read the packet thoroughly and sign and date where indicated. Make sure to bring the completed packet with you for your initial consultation. Notice: These forms are not a binding agreement that you must file for bankruptcy. Read and sign these papers before your appointment. If you arrive for your initial consultation and these papers have not been signed, neither Mr. Canfield nor Mr. Wells will be able to meet with you. Robert A. Canfield, Esq. Hunter R. Wells, Esq. Canfield, Baer & Heller, LLP West End Office 2201 Libbie Avenue, Suite 200 Richmond, VA Phone: (804) Fax: (804) Hopewell Office 201 East Broadway Avenue Hopewell, VA Phone: (804) Fax: (804)

3 CLIENT CHECKLIST FOR BANKRUPTCY FILINGS ROBERT A. CANFIELD, ESQ. HUNTER R. WELLS, ESQ. CANFIELD, BAER & HELLER, LLP THE INFORMATION BELOW IS NOT REQUIRED FOR YOUR INITIAL CONSULATION. PLEASE BE AWARE, HOWEVER, THAT THESE ARE THE DOCUMENTS NEEDED IN ORDER TO FILE YOUR CASE. TO PREPARE YOUR PETITION: Income Please supply your last six months worth of income verification. We need pay stubs for both spouses, even if only one is filing. There are no exceptions to this requirement, as the pay stubs must be provided to the court. If you are receiving checks from the VEC, please have them provide a Benefit Payment History. If you are receiving Social Security, please provide Monthly Benefit Payment History. Rough Monthly Budget Please supply us with a written, informal statement of your gross monthly income, itemized deductions, and any expenses that you have. This can be filled out in your Client Questionnaire. List of Creditors Please completely fill out our Creditor Spreadsheet. All information asked for on the form is required. Vehicle Information For vehicles that have been fully paid off, please supply us with a copy of the title. If you still owe money on a vehicle, we need the following documentation: Transcript of Vehicle Record (obtained at DMV- Fee: $8.00 per vehicle), your monthly payment amount, and documentation showing the payoff amount for the loan. Real Estate For any property that is owned, please provide our office with the Recorded Deed and all Recorded Deeds of Trust, which can be obtained from the Circuit Court in the county where the property is located. These are two separate documents. This documentation is needed for each piece of property that you own. Also, we need a current mortgage statement that shows your monthly payment and your payoff amount for each loan that you hold. Income Taxes We need copies of the last four years of income taxes, both federal and state. If you do not have these documents, you can call the IRS at and request transcripts (Form 4506-T). If you have not filed tax returns that were required by law, you must do so before your case can be filed. List of Belongings Please supply to us a list of all household furniture and belongings. This information should be supplied to us using your Client Questionnaire. Statements Needed We need current statements for any of the following types of accounts, showing a cash value: any type of retirement account, IRAs, 401(k)s, VRS accounts, and life insurance. Also, if you own any stock, please send in a statement showing the cash value. Even if a policy has no cash value, we must have documentation from the company showing that is the case. Credit Counseling Classes These classes are required. There are two separate classes. Take the first class immediately after your appointment at our office, as your petition cannot be filed without doing so. The second class is to be completed after your petition has been filed. Business Information If you have been an officer, director, partner, or owner of a business within the last six years, we need the following information: business name, address, nature of business, taxpayer ID number, and beginning and ending dates of operation. For any company that is still open, the courts require a business balance sheet. If your company has closed, business taxes may be required as well. Court Proceedings If you have been a party to a suit or garnishment within the last year, please supply us with the following information: caption of suit, case number, nature of proceeding (Warrant-in-Debt, Garnishment, etc.), court and location, and the status of the case. We need all of the above documentation before our office can begin preparing your petition. ON THE DATE OF SIGNING: On the morning of the day of your signing appointment, you must let our office know the exact balance in each bank account that you possess. When you come in for your appointment, you must bring that day s bank statement, clearly showing the account balance, for every account. Printouts from online banking are acceptable. 2

4 REQUIRED: CREDIT COUNSELING As of October 17, 2005, you must take one credit counseling course prior to filing for bankruptcy and one other credit counseling course after you have filed (pre-petition and post-petition classes). These courses must be given by a counseling organization which has been approved by the courts. There is a fee for this service; therefore, Mr. Canfield and Mr. Wells suggest that you wait until after your initial consultation before obtaining your credit counseling. Our office needs a copy of your credit counseling certificates. Please have the company of your choice send us a copy, as we must file this copy with your bankruptcy petition. West End Office Hopewell Office via e- mail jcooper@canfieldbaer.com sbush@canfieldbaer.com via fax (804) (804) Each certificate is good for six months. If you complete your credit counseling class but do not supply your paperwork and information within a reasonable amount of time and your certificate expires, you must take the first class again, as well as pay for it a second time. Below is a partial list of approved counseling agencies, with their corresponding prices for telephone and Internet classes. You will need to have your income and expenses information available to complete the class, as well as a list of your creditors. Pre-Petition Class Post-Petition Class CC Advising X X $14 X Cricket Debt Counseling $36 $24 $36 $24 Access Counseling $15 $9 $15 $9 BE Advisor Not Available by Phone X X X $11 Debt Helper $50 $50 $35 $35 Pioneer Credit Counseling X X $35 individual/$45 joint $35 individual/$45 joint MoneyPlan X X X individual *Prices are current as of Please check with the individual company to confirm pricing. **Prices shown above are for both individual and joint counseling sessions, unless otherwise noted. In addition to the companies listed above, certain businesses offer only the second class, and they offer it at a significantly lower price. The second class, called the Financial Management class, is required and our office needs to receive notice that you have taken this class by the date of your 341 Meeting, so that we can file your certificate with the court. Two affordable companies are listed below and only offer their classes online, not by telephone: BE Advisor ( $11 per person our per couple MoneyPlan ( $14.95 per person 3

5 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 meeting of creditors where you will be questioned by a court official called a trustee and you may be questioned by creditors. If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a debt. You would want help in 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 where 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 attorney, not bankruptcy petition preparers, can give legal advice. [Statement contained in and required by 11 USC 527(b).] DISCLOSURE PURSUANT TO 11 USC 527(A)(2) Under the Bankruptcy Law effective October 17, 2005, you are hereby advised that as a potential debtor under the bankruptcy code you are deemed to be an assisted person ; You are hereby advised 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 cases 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. NOTICE PURSUANT TO 11 USC 527C, 1, 2, AND 3. Under the new bankruptcy law that became effective October 17, 2005, this law firm is required to give you, as a possible debtor under the Bankruptcy Code and as an assisted person, the following information: You will have to value your assets at replacement value. Replacement value is defined in Section 506 of the Bankruptcy Code. It states in part that replacement value is the value of the property on the date of the filing of your bankruptcy petition without deduction for costs of sale or marketing. 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 value is determined. 4

6 It is sometimes difficult to determine the replacement value of your property. There may simply be no retail merchant that would ever sell a 10 year old couch with food stains on it. Other items such as a car, boat or truck may have generally acceptable sources of violation such as the NADA guide or other similarly recognized publications. Those sources should be consulted where available. When there is no recognized valuation source for property, you may want to consult the classified ads in a newspaper or other sources of used property sales. Real property must be valued at its Fair Market value or replacement value. While the local government tax assessment is a start, it is not acceptable as the final indicator of value. Recent purchase price of your real estate or comparable real estate is usually accurate. A recent appraisal is also very helpful in obtaining an accurate opinion as to the value of your real estate. To determine current money income, the amounts specified in section 707(b)(2) and in a chapter 13 case, disposable income in accordance with 707(b)(2) and related calculations, you generally must include all income from any source and all expenses. This calculation can be quite complicated. Forms will be provided for your review to assist you in this task. You must also complete the list of creditors and provide accurate addresses and other information. You should always order a credit report. All people are entitled to one free report from each of the three major credit agencies. However, do not rely entirely on the credit report. They do not always have complete and accurate information. If, for example, you know you owe a debt and it is not on your credit report, you must still list the debt. All debts must be listed or included in your bankruptcy papers. The new bankruptcy law states specific requirements for the address that is listed in the bankruptcy papers. Section 342 states that creditors are to receive notice of the bankruptcy filing at the address stated for receiving such information in two statements received over the last 90 days before the filing of your bankruptcy petition. Finally, the Code requires this office to tell you how to determine what property is exempted and how to value exempt property at replacement values as defined in section 506. Valuation has already been covered in this notice. The Bankruptcy Code tells you what property is exempt, however the exemption law is complicated as some state law applies, some federal law that is not Bankruptcy Code law applies and some federal Bankruptcy Code law applies. Furthermore, which state law applies can be complicated. In short, it is very difficult for someone not extremely familiar with the bankruptcy law and exemption laws to properly claim exemptions. This office usually does this for you. [End of 11 USC 527 1, 2 and 3 required notice.] NOTICE TO INDIVIDUAL CONSUMER DEBTOR UNDER 342(B) OF THE BANKRUPTCY CODE In accordance with 342(b) of the Bankruptcy Code, this notice: (1) Describes briefly the services available from credit counseling services; (2) Describes briefly the purposes, benefits and costs of the four types of bankruptcy proceedings you may commence; and (3) Informs you about bankruptcy crimes and notifies you that the Attorney General may examine all information you supply in connection with a bankruptcy case. You are cautioned that bankruptcy law is complicated and not easily described. Thus, you may wish to seek the advice of an attorney to learn of your rights and responsibilities should you decide to file a petition. Court employees cannot give you legal advice. 1. Services Available from Credit Counseling Agencies With limited exceptions, 109(h) of the Bankruptcy Code requires that all individual debtors who file for bankruptcy relief on or after October 17, 2005, receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing. The briefing may be provided individually or in a group (including briefings conducted by telephone or on the Internet) and must be provided by a nonprofit budget and credit counseling agency approved by the United States trustee or bankruptcy administrator. The clerk of the bankruptcy court has a list that you may consult of the approved budget and credit counseling agencies. In addition, after filing a bankruptcy case, an individual debtor generally must complete a financial management instructional course before he or she can receive a discharge. The clerk also has a list of approved financial management instructional courses. 5

7 2. The Four Chapters of the Bankruptcy Code Available to Individual Consumer Debtors Chapter 7: Liquidation ($245 filing fee, $46 administrative fee, $15 trustee surcharge: Total Fee $306) 1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a means test designed to determine whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for your state of residence and family size, in some cases, creditors have the right to file a motion requesting that the court dismiss your case under 707(b) of the Code. It is up to the court to decide whether the case should be dismissed. 2. Under chapter 7, you may claim certain of your property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors. 3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated. 4. Even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged. Chapter 13: Repayment of All or Part of the Debts of an Individual with Regular Income ($235 filing fee, $46 administrative fee: Total fee $281) 1. Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. 2. Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect. 3. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations. Chapter 11: Reorganization ($1000 filing fee, $46 administrative fee: Total fee $1046) Chapter 11 is designed for the reorganization of a business but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney. Chapter 12: Family Farmer or Fisherman ($200 filing fee, $46 administrative fee: Total fee $246) Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation. 3. Bankruptcy Crimes and Availability of Bankruptcy Papers to Law Enforcement Officials A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury, either orally or in writing in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees of the Department of Justice. WARNING: Section 521(a)(1) of the Bankruptcy Code requires that you promptly file detailed information regarding your creditors, assets, liabilities, income, expenses and general financial condition. Your bankruptcy case may be dismissed if this information is not filed with the court within the time deadlines set by the Bankruptcy Code, the Bankruptcy Rules, and the local rules of the court. 6

8 DISCLAIMER REGARDING CREDITORS Any provider of utility service has the right to demand a security deposit for the continuation of utility service. This right exists whether or not the utility is owed money at the time the bankruptcy petition is filed. Any bank/credit card issuer or other depository has the right to take the funds on deposit at the time of the filing of a bankruptcy petition and apply those funds to any debts outstanding at the time of filing. Accounts should be established with new banks if money is owed to the bank where existing accounts are being maintained. WARNING TO CUSTOMERS OF WELLS FARGO: WELLS FARGO IS NOW FREEZING YOUR BANK ACCOUNTS WHEN YOU FILE FOR BANKRUPTCY, REGARDLESS OF WHETHER OR NOT YOU OWE THEM MONEY. THEREFORE, BEFORE YOU FILE FOR BANKRUPTCY, PLEASE WITHDRAW ANY FUNDS OUT OF WELLS FARGO ACCOUNTS. INFORMATION ON AUTOMATIC DRAFTS Before filing bankruptcy, it is advised that you stop direct deposits into your bank account, if you owe them money. Also be aware that after filing bankruptcy, automatic payments from your account (for mortgage, car, etc) will cease, and you will need to make these payments directly by check. ATTORNEY ENGAGEMENT AGREEMENT FOR BANKRUPTCY ASSISTANCE AND DISCLOSURE OF COMPENSATION OF ATTORNEYS FOR DEBTOR(S) DEBT RELIEF AGENCY Canfield, Baer & Heller, LLP is designated by the Federal Government as a Debt Relief Agency, since it helps people file for bankruptcy under the United States Bankruptcy Code. INITIAL OFFICE CONSULTATION Attorneys and Client have agreed to meet at Attorneys office for an initial office consultation which may, among other things, include the providing of information and advice in Client s legal matters ( initial attorney services ). FEE FOR INITIAL CONSULTATION Client has been advised of a consultation fee for the initial consultation for a certain limited amount of time. For the initial consultation for a personal bankruptcy, there will be no charge for the first hour of consultation, unless it relates to business. If you are meeting with Mr. Canfield or Mr. Wells to discuss a possible business bankruptcy, the initial consultation fee is $500.00, which is due at the time of the appointment. This initial minimum consultation fee will be the only obligation of those clients who choose not to avail themselves of any further services of Attorneys beyond the initial consultation. BANKRUPTCY FLAT FEE If Attorneys and Client decide that a personal bankruptcy is the best route to take, Attorney will quote you a fee during your initial consultation. For a Chapter 7 bankruptcy: Half of that fee will be due when you deliver the required paperwork to complete your bankruptcy petition to our office. The other half of that fee will be due on the day that you come in to sign and file your bankruptcy petition. For a Chapter 13 bankruptcy: Only $800 will be due before we will file your bankruptcy petition. The rest of your fee will be paid through the courts as part of your Chapter 13 plan. For all bankruptcies: If you decide not to file for bankruptcy after you have paid your first payment, that amount may be non-refundable, depending on how much of your petition has already been completed. Please note, however, that the fee quoted by Mr. Canfield or Mr. Wells is subject to change. Situations that may increase your fee include, but are not limited to: last-minute changes on the day of signing; property not mentioned in initial consultation; complications to the case not disclosed during the initial consultation; excessive cancellations or cancellations within 24 hours of appointment times; excessive electronic or telephonic communications to our office; copy fees as a result of 7

9 bringing original documentation instead of copies; completion of multiple drafts due to client s not supplying information in a timely fashion; initiation of any motions or adversary proceedings in the bankruptcy court on behalf of the debtor; responding to any motions or adversary proceedings filed in the bankruptcy court against the debtor; attending any adjourned or additional 341 meetings of creditors after the initial hearing; amending the bankruptcy schedules to add creditors, change exemptions, or make other changes to the bankruptcy petition, schedules, lists or statements; and negotiating or prosecuting a redemption of personal property from a lien. BANKRUPTCY SERVICES In return for this agreement and payment (or other arrangements suitable to Attorneys) of the herein mentioned retainers, fees and costs, and in consideration of the other terms of this agreement, Mr. Canfield and Mr. Wells agree to provide services regarding the following: Preparation of draft petition in bankruptcy. Review of petition with clients. Final petition in bankruptcy reviewed with clients and signatures obtained. Filing of petition with U.S. Bankruptcy Court. Representation at first meeting of creditors. Preparation, review and filing of Chapter 13 Plan, if applicable. NON-BANKRUPTCY AND/OR ADDITIONAL REPRESENTATION If you chose not to pursue bankruptcy, you will be responsible for Attorneys normal hourly rate for any services rendered after your initial consultation. This includes all questions and advice asked of Attorneys office once it has been decided that bankruptcy is not a viable option for you and, if a bankruptcy was filed, legal advice sought after your bankruptcy case has been closed. Those clients who choose to go forward by seeking additional services of Mr. Canfield and/or Mr. Wells are subject to all the terms of this contract and all itemized billings, which include all time spent on subsequent services provided by Attorneys and their staff. Itemized billings should be expected, and may be in excess of current minimum fees and cost estimates. The fee quoted during your initial consultation does not include any out-of-pocket costs incurred by the law firm in pursuit of the Client s claim and which shall be in addition to other fees. Attorneys only agree to provide services to Client of a limited combination of attorney hours, legal assistant hours, and/or secretarial hours, for which Attorneys have been paid or for which mutually agreeable financial arrangements for payment have been made. Attorneys do not agree to provide any services in excess of those for which they have been paid or for which Attorneys and Client have made mutually agreeable arrangements for payment. Attorneys time will be charged initially at the current rate of $ per hour and legal assistants at the current rate of $ per hour. Rates may change. Bills will be rendered at intermittent times as the office deems appropriate or on request by Client in writing. Balances billed are fully due on the date of the billing, unless otherwise stated in the billing statement. Services rendered that are billed at this rate include, but are not limited to: telephonic, written, and electronic communications, either received or sent, between Client and Attorneys and/or any member of their staff; court appearances and travel to and from; postage; preparation of legal documents; amounts paid to experts; office conferences with Attorneys and/or any member of their staff; copying, faxing, and scanning of documents; legal research; analysis of letters and documents received; and any other cost Attorneys deem necessary to properly prepare and pursue Client s case. We cannot tell you in advance how much the costs for any given case will be, as cases can sometimes become more complicated than they originally appear. We will do everything in our power to keep the fees and costs as low as possible. Mr. Canfield s normal rate is $400.00/hour. Mr. Wells normal rate is $400.00/hour. ADDITIONAL CHARGES Photocopies will be billed at the rate of $.35 per page. We encourage you to bring in copies of your documents that we can keep, in order to avoid excessive charges. Fax transmissions may be billed at $1.00 per page, transmitted or received. Other costs paid by Attorney s are at their discretion and will be billed, including, but not limited to: court costs, filing fees, court reporter fees, courier fees, appraisals and/or 8

10 asset evaluations, and auto mileage. Returned checks shall require repayment of the bank fee and will require that all future payments be made by cash, cashier s check, or money order. RETAINERS Mr. Canfield and Mr. Wells may elect to include initially in this contract (or in a subsequent billing statement or letter(s)) a request for a retainer or additional retainer, or retainer replenishment to secure past, present, or future attorney services and costs. They may also elect to require client(s) to secure past, present and/or future services and costs with a deed of trust lien on real estate and/or a security interest lien in personal property (for example, tax refunds). FAILURE TO PAY Failure of the Client to immediately pay all bills submitted, to provide retainers and/or liens when requested, or to meet any other provisions of this agreement is a breach of this agreement and will relieve Mr. Canfield and Mr. Wells from providing any further services to Client. Client agrees to cooperate in endorsing any Court order, if required, to allow withdrawal of Attorneys from representation. ENDORSEMENT OF CHECKS By executing this agreement, Client expressly authorizes Mr. Canfield and Mr. Wells to endorse checks payable to Client, deposit same in attorney s account, and disburse same as Mr. Canfield or Mr. Wells deems appropriate. Mr. Canfield and Mr. Wells are expressly authorized to apply said check disbursement(s) to balances owing to attorneys by Client. CONFLICTS OF INTEREST Mr. Canfield and Mr. Wells hereby disclose to you that, from time to time, they represent as attorney a number of the local Bankruptcy Trustees in other cases and matters not related to your case. Therefore, it is entirely possible that they might be currently representing the Bankruptcy Trustee that is assigned to your case. In Attorneys judgment, this does not diminish in any way our ability and desire to vigorously represent your interests, even if your interests are antagonistic to your Trustee. If you want further information, or if you are uncomfortable concerning this matter, please let us know; otherwise we will assume that by signing this contract, you have no objection and consent to what may be dual representation in matters unrelated to your case. OWNERSHIP OF ATTORNEY S NOTES The parties agree that the notes of Attorneys and their staff are property belonging to Attorneys and not to the Client. FEES NOT CONTINGENT ON RESULTS The terms of this engagement agreement are in no way contingent upon the achievement by Mr. Canfield and Mr. Wells of a result favorable to Client, or the recovery of any sought reimbursement of attorney fees from an adverse party. CLIENT COOPERATION Client agrees to cooperate with Attorneys and all members of their staff, to make himself available for phone and/or office conferences and hearings when requested, and to quickly provide all documents and information as requested by Attorneys office from time to time. Client also agrees to keep the office informed of any changes in phone number and mailing address. Attorneys office is entitled to the individual truthfulness and cooperation of Client, as well as polite and respectful behavior and communication. Any failure in this regard is basis for disengagement. TERMINATION OF RELATIONSHIP Either party may terminate the ongoing nature of this engagement contract at will on written notice; however, all fees, costs, and other obligations under this contract accrued to the point of termination, plus a reasonable time thereafter (for Mr. Canfield and Mr. Wells to do things that they, in their discretion, deem necessary to conclude the representation), are still binding, including, but not limited to, subsequent interest and/or collection costs. DESTRUCTION OF FILE Client agrees and hereby expressly authorizes Attorneys to destroy or otherwise dispose of the Client s entire file at any time on or after three years (3 years) from the date of the signature below. Please supply our office with copies of documents and keep your originals for your own personal records. 9

11 SHARED COMPENSATION Attorneys have not agreed to share the compensation with any other person other than members and associates of their law firm and none other. APPEARANCES There may be occasions when another attorney may need to appear on a matter for Client. No representations have been made that only the named attorney will appear on Client s behalf. POST-PETITION CONTRACT There are some Court decisions holding that pre-petition obligation of clients to their bankruptcy attorneys is discharged along with other debts in the bankruptcy case. Those clients who reach the point of actually filing a bankruptcy case may be asked after the bankruptcy filing to execute an Attorneys Engagement Post-Bankruptcy Agreement, which will reiterate, to the extent necessary, the terms for services to be rendered subsequent to the bankruptcy filing. ATTORNEY CERTIFICATION AS TO THE AGREEMENT AND THE AMOUNT OF COMPENSATION PAID AND TO BE PAID Pursuant to 11 U.S.C. 329(a) and Rule 2016(b) of the Federal Rule of Bankruptcy Procedure, Mr. Canfield or Mr. Wells certifies that he is the attorney for the client(s) to the extent described in this document and that compensation paid for services rendered or to be rendered on behalf of the client(s) is described herein. Part, or all, of said compensation may be in contemplation of or in connection with a bankruptcy case. SOURCE OF COMPENSATION The source of the compensation paid, and to be paid, to Attorneys is the client or some person or entity on behalf of the debtor. FEE TO AMEND PETITION If our office has to amend (change) your bankruptcy petition once it has already been filed, the fees will be $300.00, plus an additional $2.00 for each creditor that you have listed. This fee is due before we will file your amendment. If you do not list all of your property, creditors, or other information that was requested by this office, you will legally be required to file this amendment. In addition, it may also be required that we amend the Homestead Deed that we have filed in your case, which will result in an additional fee of $ ACKNOWLEDGMENT AND AGREEMENT BY CLIENT(S) I hereby certify that I have read this Attorney-Client Engagement Agreement and I hereby reaffirm and agree to the contractual terms as stated above. I agree to pay 1½% per month interest (18% A.P.R.) on any outstanding balance not paid within 10 days from the date of mailing of a billing statement to me from the office of Robert A. Canfield and/or Hunter R. Wells. I certify that I have received a copy of this signed document. Further, I (jointly and severally, if more than one obligor) agree to pay all costs including, but not limited to, reasonable attorney fees in the collection of my obligations to my attorney under this contract. By signing below, I acknowledge that I have read this disclosure packet and agree to the terms contained in it. DATE: DATE: CLIENT S SIGNATURE CLIENT S SIGNATURE 10

12 Client Questionnaire Instructions: Please fill out this packet before your initial consultation with Mr. Canfield or Mr. Wells to ensure that they have a complete understanding of your assets and your financial situation. Please keep these pages in numerical order and staple them together. Robert A. Canfield, Esq. Hunter R. Wells, Esq. Canfield, Baer & Heller, LLP West End Office 2201 Libbie Avenue, Suite 200 Richmond, VA Phone: (804) Fax: (804) Hopewell Office 201 East Broadway Avenue Hopewell, VA Phone: (804) Fax: (804)

13 Robert A. Canfield, Esquire Hunter R. Wells, Esq Libbie Avenue, Suite 200 Richmond, VA Phone: (804) Fax: (804) Client Questionnaire for Non-Business Debtor Date: Referred By: Marital Status: Name: Spouse: Last First MI Last First MI Home Phone: Work Phone: Cell Phone Address: Home Phone: Work Phone: Cell Phone Address: Social Security #: Social Security #: Name of Employer: Employer Address: Name of Employer: Employer Address: Occupation: How long have you worked here? Occupation: How long have you worked here? Address: Street Number City State Zip County How many years or from what date have you lived in Virginia? If you have lived at another address in the past three years, please make sure to fill out that information in the Statement of Financial Affairs section. If you have a different mailing address, please list it below: Address: Street Number City State Zip County Have you used any other names in the past 8 years? Yes No If so, please list below: Please make sure to bring your Driver's License and Social Security Card to your appointment! Please supply us with copies of any documentation that we may request. Our service charge for copies is $.35/page. Page 1 "WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY."

14 Background Information Have you previously filed for bankruptcy? If so, please fill in the following information: District/State where case was filed: Case Number: Date Filed: District/State where case was filed: Case Number: Date Filed: Is there a bankruptcy case pending that was filed by your spouse? District/State where case was filed: Case Number: Date Filed: Name of Debtor: Are there currently any bankruptcy cases pending against you, your business, your spouse, or your spouse's business? Yes No Dependents Please fill out the following information for any dependents that you have: Relationship to You Age Claimed on Last Tax Return? Pending Legal Action If you currently have court action pending against you, please circle the type of action and fill in the information regarding the case(s) below: (If a case is pending, it means that you have a future court/auction date.) Garnishment Warrant-in-Debt Foreclosure Other Court Name: Name of Creditor: Court Date: Garnishment Warrant-in-Debt Foreclosure Other Court Name: Name of Creditor: Court Date: For any court actions that have already taken place, please provide that information in the Statement of Financial Affairs section, located at the end of this packet. Page 2

15 Real Estate Information List all of the real estate which you own or a joint owner of, even if you still owe money on the property. Please also remember to list any property that is located out of state. Address: Street Number City State Zip County For each mortgage on the above property, please provide the following information. If you have already done so on your creditor list, just list the name of each creditor. Name and Address of Creditor Mo. Payment Amount Balance Owed If delinquent, how many months? Is this property owned solely by you or jointly with another individual? If you own this property with someone other than yo spouse, please provide the name and address of that individual below: Can you afford to pay for this property? Yes No Is this your primary residence? Yes No If this is a rental property or someone besides you is living at this location, please fill out the following information: Name: Relationship to you (if any): Monthly Rental Amount:$ If you have a rental property, please let one of our office staff know, so that we may provide you with a Rental Balance Sheet. Address: Street Number City State Zip County For each mortgage on the above property, please provide the following information. If you have already done so on your creditor list, just list the name of each creditor. Name and Address of Creditor Mo. Payment Amount Balance Owed If delinquent, how many months? Is this property owned solely by you or jointly with another individual? If you own this property with someone other than yo spouse, please provide the name and address of that individual below: Can you afford to pay for this property? Yes No Is this your primary residence? Yes No If this is a rental property or someone besides you is living at this location, please fill out the following information: Name: Relationship to you (if any): Monthly Rental Amount:$ If you have a rental property, please let one of our office staff know, so that we may provide you with a Rental Balance Sheet. Page 3

16 Personal Property For each type of property listed below, please indicate whether or not you own this type of property, if you own it by yourself or jointly, and what you think is the approximate resale value of said property. Type of Property Description of Property Joint, Husband, or Wife? Value Cash on Hand Checking/Savings Accounts Certificates of Deposit Other bank accounts Please list each account separately. We do not need your account number. Security deposits held by utility companies or landlords Household goods, furniture, & audio, video, and computer equipment Example: 2 Beds, 3 TVs, 4 Dressers, 6 Chairs, etc. Books, pictures, artwork, CDs, and collectibles Clothing Page 4

17 Furs and Jewelry Type of Property Description of Property Joint, Husband, or Wife? Value Sports, hobby, and photography equipment, including firearms Interest in insurance policies We need the cash surrender value of each individual policy. We also need to know about any term policies. Annuities Interests in an educational IRA Interests in pension or profit sharing plans Stocks and any interests in businesses Please make sure to fill out #18 on the Statement of Financial Affairs Worksheet located at the end of this worksheet if you have or had any interests in businesses. Interests in partnerships or joint ventures Bonds Accounts receivable Page 5

18 Type of Property Description of Property Joint, Husband, or Wife? Value Alimony/family support to which you are entitled Other liquidated debts owed to you, including tax refunds Equitable or future interests or life estates Interests in estate of decedent or life insurance plan or trust Patents, copyrights, or any other type of intellectual property Licenses, franchises Automobiles, trucks, trailers, boats, motors, aircrafts, and accessories. If the vehicle has been paid off and there is no lien on it, please supply us with the make, model, and year, as well as ownership and mileage. If there is a lien on the vehicle (meaning that you are still paying for it), please write down the vehicle here and make sure that you completely fill out the Secured Creditor portion of our Creditor List. Animals Other personal property of any kind not listed Page 6

19 Do you and your spouse maintain separate households? Budget If so, we need you to fill out separate budgets for each household. Please fill out the following budget, using the average amount you spend in each category per month. Your rent or home mortgage 1st Mortgage/Rent $ 2nd Mortgage $ Does that amount include real estate taxes? Yes No Does that amount include property insurance? Yes No Electricity and heating fuel $ Water and sewage $ Telephone Service $ Other Utility Bills: $ $ $ Home maintenance, including repairs and general upkeep $ Food $ Clothing $ Laundry and dry cleaning $ Medical Expenses $ Transportation (not including car payments) $ Entertainment, recreation, newspapers, magazines $ Charitable contributions $ Insurance not deducted from paycheck Homeowner's or renter's insurance $ Life insurance $ Health Insurance $ Auto Insurance $ Other Insurance $ Taxes not deducted from paycheck $ Installment payments for car, furniture, etc. (Please specify) $ $ $ Alimony, maintenance, or support paid to others $ Payments for support of dependants not living at home $ Court-ordered payments not already listed $ Education necessary to maintain employment $ Childcare $ School expenses for children under 18 $ Other expenses not listed above: $ Page 7

20 Statement of Financial Affairs If you are filing a joint petition with your spouse, please fill out the following information for both of you. Many of these categories do not apply to all people. Please pay special attention to the items marked with a symbol. Please state your income over the past three years: Income from employment or operation of business Jan. 1 of this year through today's date Husband Wife 2009 Husband Wife 2008 Husband Wife Income other than from employment (i.e. government assistance, alimony, etc.): Jan. 1 of this year through today's date Husband Wife 2009 Husband Wife 2008 Husband Wife Payments to Creditors If you have paid any individual creditor more than $599 over the last six months, please fill out the information below. Regular monthly payments do not count towards this total. If a creditor has been completely paid off, please indicate that this is so and include the creditor's address as well. Creditor Name Dates of Payments Amount Paid Suits, Garnishments, and Attachments Please list any lawsuits or court cases that have been filed against you within the last year : Plaintiff v. Defendant Case No. Nature of Proceed Status Court Repossessions, Foreclosures, and Returns Please list all property that has been repossessed by a creditor, sold at a foreclosure sale, transferred through a deed in lieu of foreclosure, or returned to the seller, within the last year : Name/Address of Creditor Date of Action Description of Property Page 8

21 Assignments & Receiverships Describe any assignment of property for the benefit of creditors made within the last 120 days : List all property which has been in the hands of a custodian, receiver, or court-appointed official within the past year: Gifts List all gifts or charitable contributions made in the last year (besides ordinary and usual gifts to family members aggregating less that $200 in value per individual family member and any charitable contributions aggregating less than $100 per recipient): Name/Address of Recipient Relationship to YoDate of Gift Description/Value of Gift Losses List all losses from fire, theft, gambling, or other casualty within the last year : Payments Related to Debt Counseling or Bankruptcy List all payments made within the past year : Name/Address of Payee Date of Payment Amount of Money Paid Other Transfers List all other property (ex: real estate, automobiles, etc.) that you have transferred within the past two years : Closed Financial Accounts List all financial accounts held in your name that were closed, sold, or transferred in the past year: Name of Institution Date of Closing Amount in Account Last Four Digits of Account # Page 9

22 Safe Deposit Boxes List each safe deposit box in which you have or had cash, securities, or other valuables within the past year: Settlement Offers List all setoffs made by a creditor against a debt or deposit of yours within the last 90 days : Property Held for Another Person List all property that you hold or control that is owned by another person: Prior Address of Debtor(s) Please list all prior addresses for the last three years: Address Dates of Occupancy Your Name at the Time Nature, Location, and Name of Business If you have had at least 5% interest in a business in the last six years, please provide the following: Name of Company Tax ID Nature of Business Beginning/End Dates of Operation % Ownership/Interest If you have or had interest in a business, there may be additional information and paperwork requested. Page 10

23 Creditor Spreadsheet Instructions: Please fill in all of your creditors. It is legally required that you list all of your creditors on your bankruptcy petition. Therefore, please list anyone to whom you may owe money. Also, please fill in the sheet in full. If information is missing, this will delay the time it takes to complete your petition. Robert A. Canfield, Esq. Hunter R. Wells, Esq. Canfield, Baer & Heller, LLP West End Office 2201 Libbie Avenue, Suite 200 Richmond, VA Phone: (804) Fax: (804) Hopewell Office 201 East Broadway Avenue Hopewell, VA Phone: (804) Fax: (804)