Important Disclosures

To: Prospective Clients

From: Pels Anderson, LLC

Re: Bankruptcy Advertising/Disclosures

1. Disclosures for New Bankruptcy Clients
   
   
   1. The following disclosures are required for “debt relief agencies”

      1. Disclose the costs of their services
      2. Provide to all clients a written notice of their rights
      3. Enter into a written contract with their clients
      4. Provide a copy of the contract to the client
      5. Disclose that an attorney may not be necessary to file a bankruptcy, and
      6. Maintain copies of disclosures given to any person for 2 years
         

   2. Shall provide
      1. Written notice required under 342(b)(1): brief description of
         
         
      1. Chapters 7, 11, 12 and 13 and the general purpose, benefits, and costs of proceeding under each of those chapters; and 
      2. The types of services available from credit counseling agencies
         
      1. 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—
         
         
      1. 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
      2. 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;
      3. Current monthly income, the amounts specified in section 707(b)(2) (the new means test), and, in a case under chapter 13 of this title, disposable income (determined under the means test), are required to be stated after a reasonable inquiry.
      4. Information that an assisted person provides enduring 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.
         
         
   3. A debt relief agency providing bankruptcy assistance to an assisted person shall provide each assisted person at the same time as the notices required above 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
      
      
      1. “IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
      2. 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 HOME MUCH IT WILL COST.
      3. 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.
      4. 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.
      5. If you choose to file a chapter 7 cse, 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.
      6. If you choose fo 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.
      7. 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.
      8. 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.
         
2. Advertising Rules
   
   
   1. MUST DISCLOSE

      1. “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”

   2. Advertising must not mislead a consumer to believe that credit counseling is offered rather than bankruptcy assistance
   3. We must execute a written contact with a client (“assisted person”) within five (5) business days after first date of providing any bankruptcy assistance services.  Written contract must clearly and conspicuously explain:

      1. The services to be provided and 
      2. Fees or charges and terms of payment

   4. Must also provide a copy of the fully executed and completed contract.
      
      
      

      4833 RUGBY AVENUE
      FOURTH FLOOR
      BETHESDA, MARYLAND 20814
      TEL. (301) 986-5570 FAX (301) 986-5571

      119 N. HENRY STREET
      ALEXANDRIA, VIRGINIA 22314
      TEL. (703) 684-1897 FAX. (703) 684-1898