11 U.S.C. § 527 : US Code - Section 527: Disclosures

Search 11 U.S.C. § 527 : US Code - Section 527: Disclosures

(a) A debt relief agency providing bankruptcy assistance to an
assisted person shall provide -
(1) the written notice required under section 342(b)(1); and
(2) to the extent not covered in the written notice described
in paragraph (1), and not later than 3 business days after the
first date on which a debt relief agency first offers to provide
any bankruptcy assistance services to an assisted person, a clear
and conspicuous written notice advising assisted persons that -
(A) all information that the assisted person is required to
provide with a petition and thereafter during a case under this
title is required to be complete, accurate, and truthful;
(B) all assets and all liabilities are required to be
completely and accurately disclosed in the documents filed to
commence the case, and the replacement value of each asset as
defined in section 506 must be stated in those documents where
requested after reasonable inquiry to establish such value;
(C) current monthly income, the amounts specified in section
707(b)(2), and, in a case under chapter 13 of this title,
disposable income (determined in accordance with section
707(b)(2)), are required to be stated after reasonable inquiry;
and
(D) information that an assisted person provides during their
case may be audited pursuant to this title, and that failure to
provide such information may result in dismissal of the case
under this title or other sanction, including a criminal
sanction.
(b) A debt relief agency providing bankruptcy assistance to an
assisted person shall provide each assisted person at the same time
as the notices required under subsection (a)(1) the following
statement, to the extent applicable, or one substantially similar.
The statement shall be clear and conspicuous and shall be in a
single document separate from other documents or notices provided
to the assisted person:
"IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
"If you decide to seek bankruptcy relief, you can represent
yourself, you can hire an attorney to represent you, or you can get
help in some localities from a bankruptcy petition preparer who is
not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY
PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT
THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND
HOW MUCH IT WILL COST. Ask to see the contract before you hire
anyone.
"The following information helps you understand what must be done
in a routine bankruptcy case to help you evaluate how much service
you need. Although bankruptcy can be complex, many cases are
routine.
"Before filing a bankruptcy case, either you or your attorney
should analyze your eligibility for different forms of debt relief
available under the Bankruptcy Code and which form of relief is
most likely to be beneficial for you. Be sure you understand the
relief you can obtain and its limitations. To file a bankruptcy
case, documents called a Petition, Schedules and Statement of
Financial Affairs, as well as in some cases a Statement of
Intention need to be prepared correctly and filed with the
bankruptcy court. You will have to pay a filing fee to the
bankruptcy court. Once your case starts, you will have to attend
the required first meeting of creditors where you may be questioned
by a court official called a 'trustee' and by creditors.
"If you choose to file a chapter 7 case, you may be asked by a
creditor to reaffirm a debt. You may want help deciding whether to
do so. A creditor is not permitted to coerce you into reaffirming
your debts.
"If you choose to file a chapter 13 case in which you repay your
creditors what you can afford over 3 to 5 years, you may also want
help with preparing your chapter 13 plan and with the confirmation
hearing on your plan which will be before a bankruptcy judge.
"If you select another type of relief under the Bankruptcy Code
other than chapter 7 or chapter 13, you will want to find out what
should be done from someone familiar with that type of relief.
"Your bankruptcy case may also involve litigation. You are
generally permitted to represent yourself in litigation in
bankruptcy court, but only attorneys, not bankruptcy petition
preparers, can give you legal advice.".
(c) Except to the extent the debt relief agency provides the
required information itself after reasonably diligent inquiry of
the assisted person or others so as to obtain such information
reasonably accurately for inclusion on the petition, schedules or
statement of financial affairs, a debt relief agency providing
bankruptcy assistance to an assisted person, to the extent
permitted by nonbankruptcy law, shall provide each assisted person
at the time required for the notice required under subsection
(a)(1) reasonably sufficient information (which shall be provided
in a clear and conspicuous writing) to the assisted person on how
to provide all the information the assisted person is required to
provide under this title pursuant to section 521, including -
(1) how to value assets at replacement value, determine current
monthly income, the amounts specified in section 707(b)(2) and,
in a chapter 13 case, how to determine disposable income in
accordance with section 707(b)(2) and related calculations;
(2) how to complete the list of creditors, including how to
determine what amount is owed and what address for the creditor
should be shown; and
(3) how to determine what property is exempt and how to value
exempt property at replacement value as defined in section 506.
(d) A debt relief agency shall maintain a copy of the notices
required under subsection (a) of this section for 2 years after the
date on which the notice is given the assisted person.