Question:
I have a debtor that owns property that he is renting out to his son. The mortgage is $2,000.00 per month and the rent he is charging his son is $2,000.00. I'm not sure how to list it in Schedule I, Schedule J and the Means Test. To me it wipes out any income but I'm sure it must be indicated properly in the schedules and the means test. Can you help?
Answer:
Yes, this will all need to be reported.
- The mortgage debt would be reported on Schedule D.
- The mortgage payment would be reported on Schedule J (line 1).
- The $2,000 monthly income from the son would be reported on Schedule I (line 8).
- The $2,000 monthly income from the son would also be reported on the Means Test with other income. If you are using Best Case, use the "Edit CMI Details" button to enter all sources of income separately.
- If the debtor has made the monthly payments for the last 90 days, this will also need to be reported on the Statement of Financial Affairs (line 3).
Question:
Good morning, please see the 2nd part of my test for certification previously submitted. I mailed the first part about 3 weeks ago. Please let me know that first and 2nd part have been received.
Answer:
Thank you for your email, however, this is the older exam that is now outdated. The updated exam was released last December and is taken completely online. Your time investment in the older exam will be of benefit to you, as the updated exam does include things from the original exam. Visit www.713training.com for information on the current certification exam.
Question:
I have attached a Chapter 13 for review. I am confused about how I listed a couple of property items. My client had a house with her ex-boyfriend that went through a short sale. I listed it on Schedule F. Also, my client is on the deed to her parent's house, but only has a life estate interest. I listed it on Schedule B since she is not on the loan. She is also a co-signer on her current boyfriend's equity line — I put it on Schedule F because she has no rights to the house and is only on the equity line.
Answer:
Regarding the debtor's house with her boyfriend, you've listed them on the correct schedule — Schedule F — since she no longer owns it, making the debt unsecured non-priority.
Regarding the debtor's parent's home, since her name is on the deed, I would list this on Schedule A, and select the "Nature of Debtor's Interest in Property" as "Life Estate."
I would also list the line of credit she co-signed for the boyfriend on Schedule F, as you have done.
I noticed there is a car payment listed on Schedule J, but no car listed on Schedule B and no lien on Schedule D — something may have been overlooked. Also, some numbers on Schedule J match the IRS allowance exactly, which may draw a trustee objection. Consider going close to these allowances without hitting them exactly.
Question:
1) How do VBAs get paid? 2) What is the amount per petition? 3) Is there enough work for everyone being trained?
Answer:
Virtual Bankruptcy Assistants get paid by the attorneys they work for. The amount, frequency, and terms are determined between the VBA and the attorney. There is no set amount per petition — charge what your services are worth and what attorneys are willing to pay. As a guideline, we suggest no less than $300 for a Chapter 7 and no less than $400 for a Chapter 13, though many VBAs earn significantly more.
There is so much bankruptcy petition work out there compared to the number of people trained to work virtually, it will be years before saturation is even a question. More and more attorneys are getting into bankruptcy every day, and they all need petitions drafted.
Ready to start earning income drafting bankruptcy petitions from home? See our online bankruptcy petition training courses at www.713training.com. You can also join our online community at www.navba.org.