debtcollection

Rule 2001 Appointment of Interim Trustee Before Order for Relief in a Chapter 7 Liquidation Case

(a) Appointment. At any time following the commencement of an involuntary liquidation case and before an order for relief, the court on written motion of a party in interest may order the appointment of an interim trustee under §303(g) of the Code. The motion shall set forth the necessity for the appointment and may be granted only after hearing on notice to the debtor, the petitioning creditors, the United States trustee, and other parties in interest as the court may designate.

(b) Bond of Movant. An interim trustee may not be appointed under this rule unless the movant furnishes a bond in an amount approved by the court, conditioned to indemnify the debtor for costs, attorney's fee, expenses, and damages allowable under §303(i) of the Code.

(c) Order of Appointment. The order directing the appointment of an interim trustee shall state the reason the appointment is necessary and shall specify the trustee's duties.

(d) Turnover and Report. Following qualification of the trustee selected under §702 of the Code, the interim trustee, unless otherwise ordered, shall (1) forthwith deliver to the trustee all the records and property of the estate in possession or subject to control of the interim trustee and, (2) within 30 days thereafter file a final report and account.






















Notes

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991.)

Notes of Advisory Committee on Rules—1983

This rule is adapted from former Bankruptcy Rule 201. See also former Chapter X Rule 10–201. In conformity with title 11 of the United States Code, this rule substitutes “interim trustee” for “receiver.” Subdivision (a) and (e) of Rule 201 are not included because the provisions contained therein are found in detail in §303(g) of the Code, or they are inconsistent with §701 of the Code. Similarly, the provisions in Rule 201(d) relating to a debtor's counterbond are not included because of their presence in §303(g).

Subdivision (a) makes it clear that the court may not on its own motion order the appointment of an interim trustee before an order for relief is entered. Appointment may be ordered only on motion of a party in interest.

Subdivision (b) requires those seeking the appointment of an interim trustee to furnish a bond. The bond may be the same one required of petitioning creditors under §303(e) of the Code to indemnify the debtor for damages allowed by the court under §303(i).

Subdivision (c) requires that the order specify which duties enumerated in §303(g) shall be performed by the interim trustee. Reference should be made to Rule 2015 for additional duties required of an interim trustee including keeping records and filing periodic reports with the court.

Subdivision (d) requires turnover of records and property to the trustee selected under §702 of the Code, after qualification. That trustee may be the interim trustee who becomes the trustee because of the failure of creditors to elect one under §702(d) or the trustee elected by creditors under §702(b), (c).

Notes of Advisory Committee on Rules—1991 Amendment
This rule is amended to conform to §303(g) of the Code which provides that the United States trustee appoints the interim trustee. See Rule X–1003. This rule does not apply to the exercise by the court of the power to act sua sponte pursuant to §105(a) of the Code

Employment of Professional Person Rule 2014

(a) Application for and Order of Employment. An order approving the employment of attorneys, accountants, appraisers, auctioneers, agents, or other professionals pursuant to §327, §1103, or §1114 of the Code shall be made only on application of the trustee or committee. The application shall be filed and, unless the case is a chapter 9 municipality case, a copy of the application shall be transmitted by the applicant to the United States trustee. The application shall state the specific facts showing the necessity for the employment, the name of the person to be employed, the reasons for the selection, the professional services to be rendered, any proposed arrangement for compensation, and, to the best of the applicant's knowledge, all of the person's connections with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee. The application shall be accompanied by a verified statement of the person to be employed setting forth the person's connections with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States trustee, or any person employed in the office of the United States trustee.

(b) Services Rendered by Member or Associate of Firm of Attorneys or Accountants. If, under the Code and this rule, a law partnership or corporation is employed as an attorney, or an accounting partnership or corporation is employed as an accountant, or if a named attorney or accountant is employed, any partner, member, or regular associate of the partnership, corporation, or individual may act as attorney or accountant so employed, without further order of the court.
Notes
(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991.)

Notes of Advisory Committee on Rules—1983

Subdivision (a) is adapted from the second sentence of former Bankruptcy Rule 215(a). The remainder of that rule is covered by §327 of the Code.

Subdivision (b) is derived from former Bankruptcy Rule 215(f). The compensation provisions are set forth in §504 of the Code.

Notes of Advisory Committee on Rules—1991 Amendment

This rule is amended to include retention of professionals by committees of retired employees pursuant to §1114 of the Code.

The United States trustee monitors applications filed under §327 of the Code and may file with the court comments with respect to the approval of such applications. See 28 U.S.C. §586(a)(3)(H). The United States trustee also monitors creditors’ committees in accordance with 28 U.S.C. §586(a)(3)(E). The addition of the second sentence of subdivision (a) is designed to enable the United States trustee to perform these duties.

Subdivision (a) is also amended to require disclosure of the professional's connections with the United States trustee or persons employed in the United States trustee's office. This requirement is not intended to prohibit the employment of such persons in all cases or to enlarge the definition of “disinterested person” in §101(13) of the Code. However, the court may consider a connection with the United States trustee's office as a factor when exercising its discretion. Also, this information should be revealed in the interest of full disclosure and confidence in the bankruptcy system, especially since the United States trustee monitors and may be heard on applications for compensation and reimbursement of professionals employed under this rule.

The United States trustee appoints committees pursuant to §1102 of the Code which is applicable in chapter 9 cases under §901. In the interest of full disclosure and confidence in the bankruptcy system, a connection between the United States trustee and a professional employed by the committee should be revealed in every case, including a chapter 9 case. However, since the United States trustee does not have any role in the employment of professionals in chapter 9 cases, it is not necessary in such cases to transmit to the United States trustee a copy of the application under subdivision (a) of this rule. See 28 U.S.C. §586(a)(3)(H).

Amendments of Voluntary Petitions, Lists, Schedules and Statements Rule 1009




















(a) General Right To Amend. A voluntary petition, list, schedule, or statement may be amended by the debtor as a matter of course at any time before the case is closed. The debtor shall give notice of the amendment to the trustee and to any entity affected thereby. On motion of a party in interest, after notice and a hearing, the court may order any voluntary petition, list, schedule, or statement to be amended and the clerk shall give notice of the amendment to entities designated by the court.

(b) Statement of Intention. The statement of intention may be amended by the debtor at any time before the expiration of the period provided in §521(a) of the Code. The debtor shall give notice of the amendment to the trustee and to any entity affected thereby.

(c) Statement of Social Security Number. If a debtor becomes aware that the statement of social security number submitted under Rule 1007(f) is incorrect, the debtor shall promptly submit an amended verified statement setting forth the correct social security number. The debtor shall give notice of the amendment to all of the entities required to be included on the list filed under Rule 1007(a)(1) or (a)(2).

(d) Transmission to United States Trustee. The clerk shall promptly transmit to the United States trustee a copy of every  amendment filed or submitted under subdivision (a), (b), or (c) of this rule.
   
Notes
(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 12, 2006, eff. Dec. 1, 2006; Apr. 23, 2008, eff. Dec. 1, 2008.)

Notes of Advisory Committee on Rules—1983

This rule continues the permissive approach adopted by former Bankruptcy Rule 110 to amendments of voluntary petitions and accompanying papers. Notice of any amendment is required to be given to the trustee. This is particularly important with respect to any amendment of the schedule of property affecting the debtor's claim of exemptions. Notice of any amendment of the schedule of liabilities is to be given to any creditor whose claim is changed or newly listed.

The rule does not continue the provision permitting the court to order an amendment on its own initiative. Absent a request in some form by a party in interest, the court should not be involved in administrative matters affecting the estate.

If a list or schedule is amended to include an additional creditor, the effect on the dischargeability of the creditor's claim is governed by the provisions of §523(a)(3) of the Code.

Notes of Advisory Committee on Rules—1987 Amendment
Subdivision (a) is amended to require notice and a hearing in the event a party in interest other than the debtor seeks to amend. The number of copies of the amendment will be determined by local rule of court.

Subdivision (b) is added to treat amendments of the statement of intention separately from other amendments. The intention of the individual debtor must be performed within 45 days of the filing of the statement, unless the court extends the period. Subdivision (b) limits the time for amendment to the time for performance under §521(2)(B) of the Code or any extension granted by the court.
Notes of Advisory Committee on Rules—1991 Amendment

The amendments to subdivision (a) are stylistic.
Subdivision (c) is derived from Rule X–1002(a) and is designed to provide the United States trustee with current information to enable that office to participate effectively in the case.

Committee Notes on Rules—2006 Amendment

Subdivision (c). Rule 2002(a)(1) provides that the notice of the §341 meeting of creditors include the debtor's social security number. It provides creditors with the full number while limiting publication of the social security number otherwise to the final four digits of the number to protect the debtor's identity from others who do not have the same need for that information. If, however, the social security number that the debtor submitted under Rule 1007(f) is incorrect, then the only notice to the entities contained on the list filed under Rule 1007(a)(1) or (a)(2) would be incorrect. This amendment adds a new subdivision (c) that directs the debtor to submit a verified amended statement of social security number and to give notice of the new statement to all entities in the case who received the notice containing the erroneous social security number.

Caption of Petition Rule 1005

The caption of a petition commencing a case under the Code shall contain the name of the court, the title of the case, and the docket number. The title of the case shall include the following information about the debtor: name, employer identification number, last four digits of the social-security number or individual debtor's taxpayer-identification number, any other federal taxpayer-identification number, and all other names used within eight years before filing the petition. If the petition is not filed by the debtor, it shall include all names used by the debtor which are known to the petitioners.

Notes
(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Mar. 27, 2003, eff. Dec. 1, 2003; Apr. 23, 2008, eff. Dec. 1, 2008.)

Notes of Advisory Committee on Rules—1983

The title of the case should include all names used by the debtor, such as trade names, former married names and maiden name. See also Official Form No. 1 and the Advisory Committee Note to that Form. Additional names of the debtor are also required to appear in the caption of each notice to . See Rule 2002(m).

















Committee Notes on Rules—2003 Amendment

The rule is amended to implement the Judicial Conference policy to limit the disclosure of a party's social security number and similar identifiers. Under the rule, as amended, only the last four digits of the debtor's social security number need be disclosed. Publication of the employer identification number does not present the same identity theft or privacy protection issues. Therefore, the caption must include the full employer identification number.

Debtors must submit with the petition a statement setting out their social security numbers. This enables the clerk to include the full social security number on the notice of the section 341 meeting of creditors, but the statement itself is not submitted in the case or maintained in the case file.


Changes Made After Publication and Comments. The rule was changed only slightly after publication. The rule was changed to make clear that only the debtor's social security number is truncated to the final four digits, but other numerical identifiers must be set out in full. The rule also was amended to include a requirement that a debtor list other federal taxpayer identification numbers that may be in use.

Committee Notes on Rules—2008 Amendment

The rule is amended to require the disclosure of all names used by the debtor in the past eight years. Section 727(a)(8) was amended in 2005 to extend the time between chapter 7 discharges from six to eight years, and the rule is amended to implement that change. The rule also is amended to require the disclosure of the last four digits of an individual debtor's taxpayer-identification number. This truncation of the number applies only to individual debtors. This is consistent with the requirements of Rule 9037.

Commencement of Case Rule 1002

(a) Petition. A petition commencing a case under the Code shall be filed with the clerk.

(b) Transmission to United States Trustee. The clerk shall forthwith transmit to the United States trustee a copy of the petition filed pursuant to subdivision (a) of this rule.

Notes
(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991.)

Notes of Advisory Committee on Rules—1983

Under §§301–303 of the Code, a voluntary or involuntary case is commenced by filing a petition with the bankruptcy court. The voluntary petition may request relief under chapter 7, 9, 11, or 13 whereas an involuntary petition may be filed only under chapter 7 or 11. Section 109 of the Code specifies the types of debtors for whom the different forms of relief are available and §303(a) indicates the persons against whom involuntary petitions may be filed.

The rule in subdivision (a) is in harmony with the Code in that it requires the filing to be with the bankruptcy court.

The number of copies of the petition to be filed is specified in this rule but a local rule may require additional copies. This rule provides for filing sufficient copies for the court's files and for the trustee in a chapter 7 or 13 case.

Official Form No. 1 may be used to seek relief voluntarily under any of the chapters. Only the original need be signed and verified, but the copies must be conformed to the original. See Rules 1008 and 9011(c). As provided in §362(a) of the Code, the filing of a petition acts as a stay of certain acts and proceedings against the debtor, property of the debtor, and property of the estate.

Notes of Advisory Committee on Rules—1987 Amendment

Rules 1002(a), governing a voluntary petition, 1003(a), governing an involuntary petition, and 1003(e), governing a petition in a case ancillary to a foreign proceeding, are combined into this Rule 1002. If a bankruptcy clerk has been appointed for the district, the petition is filed with the bankruptcy clerk. Otherwise, the petition is filed with the clerk of the district court.

The elimination of the reference to the Official Forms of the petition is not intended to change the practice. Rule 9009 provides that the Official Forms “shall be observed and used” in cases and proceedings under the Code.

Subdivision (b) which provided for the distribution of copies of the petition to agencies of the United States has been deleted. Some of these agencies no longer wish to receive copies of the petition, while others not included in subdivision (b) have now requested copies. The Director of the Administrative Office will determine on an ongoing basis which government agencies will be provided a copy of the petition.
















The number of copies of a petition that must be filed is a matter for local rule.

Notes of Advisory Committee on Rules—1991 Amendment

Subdivision (b) is derived from Rule X–1002(a). The duties of the United States trustee pursuant to the Code and 28 U.S.C. §586(a) require that the United States trustee be apprised of the commencement of every case under chapters 7, 11, 12 and 13 and this is most easily accomplished by providing that office with a copy of the petition. Although 28 U.S.C. §586(a) does not give the United States trustee an administrative role in chapter 9 cases, §1102 of the Code requires the United States trustee to appoint committees and that section is applicable in chapter 9 cases pursuant to §901(a). It is therefore appropriate that the United States trustee receive a copy of every chapter 9 petition.

Notwithstanding subdivision (b), pursuant to Rule 5005(b)(3), the clerk is not required to transmit a copy of the petition to the United States trustee if the United States trustee requests that it not be transmitted. Many rules require the clerk to transmit a certain document to the United States trustee, but Rule 5005(b)(3) relieves the clerk of that duty under this or any other rule if the United States trustee requests that such document not be transmitted.

Just as a letter grade in school determined your academic fitness, so your credit score determines your financial fitness. Credit score is a numerical expression generated by a mathematical algorithm based on information in your credit report. The resulting figure is a highly accurate prediction of how likely you are eligible to pay your bills. Credit score which ranges from the lowest score of 340 to the highest at 850 determines the rate of interest and whether you can buy a house, car or computer or get a student loan. It also tells lenders how likely you are to default on a loan.

Credit scores are designed to know if you are creditworthy or not. Your credit score will be calculated on the basis of your credit report which contains a history of how you’ve paid your bills, how much open credit you have, and anything else that would affect your credit worthiness. In the process of credit reporting, the consumer agencies, banks and credit unions score individuals and determine their credit profile. They instead of manually reading through your credit report will just look at a number: your credit score. You are advised to know how credit reports works, before planning g for your financial future.

There are lots of credit score programs and models that generate your credit score. Different models can determine different scores. But the lenders use some scoring models more as compared to others. Among all, the most popular credit score is the FICO credit score, from Fair Issac Corporation. Its scale ranges from 300 to 850. There also exist other credit scores which might extend the FICO credit score, or they might be custom built for lender’s particular needs. In US TransUnion, Equifax, Experian and Innovis are the four primary agencies that maintain credit information.


Your credit scores do not determine the approval of your loan. They are simply numbers generated from your credit reports and from where your lenders sets standards on which credit scores are acceptable and makes the final decision. You must improve your credit score, to show that you are a seasoned, responsible borrower. Take a hard, objective look at your finances and make a plan to tackle your credit and set a date to reach the desired score, to enjoy a healthy credit file.

National Asset Management offers highly qualified services of business debts collection and credit recovery services. Our purpose is to recover owed money, with specialist teams of Debt Collectors

Those with a bad credit history and is looking for a credit card solution, can opt for both Secured Credit Card and Prepaid Credit Cards. But know in details about the features of both these cards before applying for one. Determine what features are most important that suits your financial situation and budget and measure them against the costs associated with each offer. Both Secured Credit Card and Prepaid Credit Cards require you to deposit amounts. Only after the amount is successfully deposited you are allowed to use these cards. Both the cards can be used to make purchases like regular credit cards. But here ends its similarities. The dissimilarities between a secured credit card and prepaid credit card are as follows:-


Secured Credit Cards requires you to make a one-time security deposit against the credit limit before you get approval to use the card. You must make monthly payments on your card as you would on a regular credit card. The spending you make with your card goes against your revolving credit limit. Your deposited amount is placed in a saving account until your card is converted to an unsecured credit until you default on your payments. If you maintain regularity in your payments, the card issuer will often recompense you credit line without requiring you to add to your security deposit.

On the other hand Prepaid Credit Cards though are called credit cards, but they really are more like debit cards. There is no credit limit and your credit line depends on how much money you have transferred to the card, and it decreases each time you make a purchase. Once you spend the money from the deposited amount, you must redeposit money before you can spend again.

The fee structure also varies between secured credit cards and prepaid credit cards. A secured credit card charges fees typical of a credit card. You have to pay for application fee, finance charge, annual fee and late fee. If you use your secured credit card wisely, you will not be required to pay some of these fees. While prepaid credit cards have entirely different fee structure, depending on the card you choose. At the very starting you have to pay the activation fees and monthly maintenance fees. You may also have to pay a small amount while reloading money in your card or while withdrawing money from an ATM. Many prepaid cards are completely free. Using prepaid credit cards will never charge you interest and late fee.

If you want to improve your credit score, a secured credit card is the best option. Choose a secured card that reports to the major credit bureaus. If you make regular payments your secured card will be converted to an unsecured one after 12 months or less. While a prepaid credit card is a best option for those who can’t get a checking account or want to avoid banks. This card is a good choice for teenagers and students who get an allowance from parents.

National Asset Management offers highly qualified services of business debts collection and credit recovery services. Our purpose is to recover owed money, with specialist teams of Debt Collectors

Garnishing one’s wages is one of the frustrations of all frustrating financial situations. This makes one lose control over his own money, and there remains no choice but let another person or agency cut a portion of your hard-earned cash each time you receive the payment. It’s a difficult situation for people with debt trouble to make ends meet, and a wage garnishment makes it even harder to meet other financial obligations. But one can follow some steps, to stop the garnishment process.


Best way to stop wage garnishment is to work out an agreement with your creditor, who is usually If the creditor don’t agree for any agreement, and you stand in the worst condition, you can always file for Bankruptcy. Though, this is a pretty heavy decision, but will surely help you from garnishing your wages.

Contact the creditor and make negotiation to pay off your Debts in manageable instalments.

If possible pay off the debts in full which will eliminate any need for creditors to approach the court. If not possible borrow from your relatives or a close friend, as paying back such a debt will be far less costly and your garnishment will be terminated.

Meet a financial adviser and talk about consolidating debt. Debt consolidator will work on your behalf and will make arrangements for monthly payment from you to distribute among the creditors.

File a claim of exemption that the wage garnishment will cut too deeply into your income and pay basic living expenses. If the claim is accepted, it may stop the wage garnishment entirely or at least lower it.

fond of collecting as much money as they can.

 Wage garnishment happens when your earnings are withheld following a legal procedure to pay your debts. Your wages can only be garnished as the result of a court command or a similar action. It’s important not to ignore a lawsuit summons, as doing so one loses the chance to fight a wage garnishment.

There are Federal laws, the Consumer Credit Protection Act, which effectively regulates wage garnishment, specifying the maximum amount that can be garnished. This helps in prohibiting the employers from dismissal you because of a single garnishment. The law let off from garnishment, 75% of disposable income per week, or an amount up to thirty times the federal minimum hourly wage (currently $5.15), whichever is greater.

Regarding the garnishment of wages, your disposable earning is your gross earning minus Legally required deductions which includes federal, state and local taxes, unemployment insurance, social security deduction, and state retirement system. Other subtractions like health policy, life insurance, and charitable contributions are not lawfully required and therefore are not used to determine your disposable income.

These limits are applicable to any number of creditors seeking garnishment. Normal limitations on wage garnishment bounds are not applicable to Bankruptcy court orders, federal and state tax debts, voluntary wage assignments, or child and spousal support. Generally, wages, salaries, commissions, bonuses, pension, retirement income or other income can also be garnished. Usually, tips or social security benefits cannot be garnished, except by the Federal government.

The Debt Collector in search of information regarding their consumer’s details often calls your relatives, neighbour, your close friends or known associates. Typically the debt collectors may call you only during reasonable hours of the day. But however, you can ask them to stop making repeated calls, if they start harassing you. But they have the right to call your neighbours if you are dodging them or is trying to hide yourself without paying off the debt. But in case the neighbours or the relatives or whoever it is, if they ask them to stop calling they must do.

The Debt Collectors can even use some tactics which can fall you in an embarrassing or awkward situation. They may visit your relative or neighbour’s house and ask them to leave a message on your door asking you to call them. But the best way to avoid falling in such situation is to receive their calls. The debt collectors are bound to call your relatives or neighbours when you are avoiding them.

The Fair Debt Collection Agency also permits the debt collectors and agencies to call a neighbour or nearby ones if the agency does not have what the FDCA describes as “location information”. The location information consists of the consumer’s address, phone number and the address of the work place. If the agency tries to call your close ones besides having the “location information”, then they are violating the FDCA Act even if they pretend to be requesting location information.