King Bankruptcy Media THE CONSUMER BANKRUPTCY LETTER
 In This Issue: October 9, 2003 
•   BANKRUPTCY THIS WEEK . . .
•   CASE & COMMENT . . .
•   BankruptcyBooks.com
•   EVENTS & ANNOUNCEMENTS
•   LEGISLATION & REFORM NEWS . . .
•   BANKRUPTCY HUMOR
 BANKRUPTCY THIS WEEK . . .
BK FILING FEES TO RISE - SEE EVENTS & ANNOUNCEMENTS, BELOW
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BANKRUPTCY LAWYERS ARE ADVERTISING MORE

An Associated Press article reports that TV, radio and billboard advertising by bankruptcy lawyers has increased substantially in Louisanna, probably reflecting a national trend. Bankruptcy lawyers give local attorney Sam Henry credit for motivating them to compete more aggressively for the market. Henry's slogan, "Call Sam" has become almost a household phrase among consumers. Henry, who does extensive advertising in newspapers, TV, radio and billboards.

Says Henry, "My business has increased 700 percent, all because people know to 'Call Sam!'"

bkThisWeek.com

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BankruptcyBooks.com

 LEGISLATION & REFORM NEWS . . .
NEW FORM 21 PROPOSED - WILL DISCLOSE SOCIAL SECURITY NUMBER BUT WILL NOT BE AVAILABLE TO THE PUBLIC

Official Form 6, the schedules of assets and liabilities, will state that the debtor is only required to list the last four digits of account numbers but that the full numbers are useful to the trustee and creditors and may be provided if the debtor chooses to do so.

Official Form 16A, the full caption, will be amended to include only the last four digits of the debtor's Social Security number. Accordingly, notices other than the 341 notice will either include the last four digits or none, if Official Form 16B, the short caption, is used.

One of the key changes is the new Statement of Social Security Number, proposed Official Form 21. Some courts may require that a signed paper copy of the verified form be submitted. Other courts may require that the information be submitted electronically as part of case opening in CM/ECF or as part of the automated Case UpLoad process and that the debtor's attorney retain a signed copy of the verified statement.

This form is not yet required, but is included in a group of proposed Bankruptcy Rules changes. For further information on proposed rules changes, click on BANKRUPTCY REFORM NEWS, below; then click on LAW UPDATE; then click on RULES.

FOR FURTHER COMMENT ON FORM 21, click on BANKRUPTCY REFORM NEWS, below; then click on LAW UPDATE; then click on FORMS.

Bankruptcy Reform News

 CASE & COMMENT . . .
COURT DENIES SUBSTANTIAL ABUSE CHALLENGE TO CHAPTER 7 DEBTOR WHO COULD PAY 69% OF GENERAL UNSECURED DEBT IN CHAPTER 13

The trustee made a "substantial abuse" objection under 11 U.S.C. § 707(b). The court held that other than the ability to pay a substantial portion of unsecured debt over 365 months, there was no other evidence of bad faith. The court listed nine factors to take into consideration:

1. Whether the bankruptcy petition was filed because of sudden illness, calamity, disability, or unemployment;

2. Whether the debtor incurred cash advances and made consumer purchases far in excess of his ability to repay;

3. Whether the debtor's schedules and statement of current income and expenses reasonably and accurately reflect his true financial condition;

4. Whether the debtor enjoys a stable source of future income;

5. Whether he is eligible for adjustment of his debts through Chapter 13;

6. Whether there are state remedies with the potential to ease his financial predicament;

7. The degree of relief obtainable through private negotiations;

8. Whether his expenses can be significantly reduced without depriving him of adequate food, clothing, shelter, and other necessities; and

9. Whether the petition was filed in good faith.

In re Daubman, __ B.R. __ (C.D.Ill. 2003)
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STAY IS VOID WHERE CASE FILED DURING 180 DAY BAR PERIOD

A bankruptcy petition filed in violation of a court-imposed 180-day bar is properly excluded from the automatic stay provisions of the bankruptcy code.

In re Umali, __ F.3d __ (9th Cir. 2003)

LAW UPDATES

 EVENTS & ANNOUNCEMENTS
BANKRUPTCY FILING FEES GOING UP ON NOV. 1

The Judicial Council of the United States Courts has announced filing fee increases, effective Nov. 1 of this year.

Principal new filing fees for-

Chapter 7 $209.00
Chapter 13 $194.00
Motion for Relief From Stay $150.00
Motion to Abandon $150.00
Amended schedules $6.00
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AMERICAN BOARD OF CERTIFICATION RELEASES 2003 DIRECTORY

The American Board of Certification has released its 2003 directory of certified bankruptcy lawyers. It is divided into Business Bankruptcy Attorneys, Consumer Bankruptcy Attorneys, and Creditors' Rights Specialists, with each category broken down by state.

The letter from President (John D. Penn, Haynes & Boone) in the Directory reports that the total number of board certified bankruptcy attorneys is expected to hit 1,000 in the near future.

More information about the Directory, and board certification, may be found on the board web site at www.abcworld.org.

SUBMIT YOUR PRESS RELEASE

 BANKRUPTCY HUMOR
WHY FRED WILL BE SUCCESSFULL . . .

Fred collected lots of money from trick-or-treating and he went to the candy store to buy some chocolate.

"You should give that money to charity," said the sales girl.

Fred thought for a moment and said, "No, I'll buy the chocolate. You give the money to charity."
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Save a little money each month and at the end of the year you'll be surprised at how little you have. - Ernest Haskins
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If man and wife get divorced in Arkansas, are they still brother and sister?

PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS
© King Bankruptcy Media 2003 CONTACT US AT editor@bankruptcymedia.com  BankruptcyMedia.com

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