BEST CASE BANKRUPTCY The Fundamentals

Transcription

1 BEST CASE BANKRUPTCY The Fundamentals This educational guide provides an introduction to preparing and filing bankruptcy cases with Best Case. Get an inside look into features and functions including helpful screen shots, step-bystep instructions and tips. TABLE OF CONTENTS Client Management Features...2 Prepare a New Petition...4 Workflow Efficiency Tools MyCaseInfo...6 Credit Report Import...7 Means Test Calculator...8 Chapter 13 Plan Calculator...9 Electronic Case Filing...10 MyECFMail Resources and Online Tools...12

2 Client Management Features Quickly Identify Information About a Client As the volume of information required for one bankruptcy case increases, Best Case continues to provide new functionality to meet the demands of attorneys today. Client management features make it easier for users to track and manage client files more effectively. Client Status Tab With Best Case you can sort clients to find a file quickly and easily. When a client calls, you can access the proper file instantly and add a detailed note regarding the call. To open the Client Status Tab, click the Case Status button on the bottom of the Forms and Schedules window. Choose from three file status/case status categories: Active Case Closed Case Prospective Client Include more details by identifying where they are within the status category. For example if the case has been selected as an Active Case then you can further distinguish the case by the following categories: Preparing to File Ready to File Filed / Pre 341 Post 341 Pre Confirmation In Plan Discharged Dismissed You can populate the Client Status screen with other useful case information, such as case number, essential dates and more. The Client List provides an overview of all client activity. Easily filter, serach or run reports from this window. Record key information about your client s status, including critical dates, and flag the client for a follow-up. Notes Tab You can add notes to a client field to help keep track of various communications, events and more. 1. Open a client file and click the Notes button 2. Click Insert and the Notes Form dialog box opens 3. Enter a Subject and User Name 4. Type a message in the Notes window and click OK Track detailed notes. Easily document call dates, times, record a conversation and track when your client finishes MyCaseInfo. 2 Best Case Bankruptcy: The Fundamentals

3 Client Management Features Track and Manage Clients More Effectively Important Dates Tab The Important Dates Tab helps you keep track of key dates. Insert a client s expected filing date and Best Case calculates a list of deadline dates for critical events and required documents. Easily keep track of the first available date for Credit Counseling (180 days before filing), the period for payment advices (60 days prior to filing) and more. You can print this list or export to your to Outlook or other icalendarcompatible software Send Dates to Calendar: 1. Choose dates to export from the Case Status, User Defined or Important Dates tabs 2. Click To Calendar at the bottom of the window 3. Check the events you want to export 4. Click Send to Calendar at the bottom of the window Best Case provides a list of deadline dates for critical events and required documents. Selecting dates to export begins with just a couple clicks in the Case Status, User Defined or Important Dates tabs. Note: For Send to Calendar to work properly, Outlook or icalendar must be open and running. You may be prompted to link your external calendar to Best Case on your first Send to Calendar export. User-Defined Fields There are four types of fields available to customize depending on your needs. Choose from: Text fields Date fields Amount fields Check box fields To Access User-Defined Fields: 1. Open a client file and click the Notes button on the Best Case toolbar 2. Select the tab labeled User Defined 1 3. Click Edit Field Prompts to create a name for the new field 4. Select the appropriate tab from the choices above for the unique field you are adding 5. Enter the desired field name into the Field Prompt Text box Add custom fields including fields for an emergency contact number, dates when pay stubs were filed, when the MyCaseInfo questionnaire was completed and to insert any additional fees. TIP The Field Tip Text box produces text that appears when a mouse hovers over the new field. Note: To remove unused User-Defined Fields enter a tilde (~) in the Field Prompt Text box. Best Case Bankruptcy: The Fundamentals 3

4 Prepare a New Petition Create a New Client File To create a new client file: 1. Click New Client 2. Specify basic information about the case, and click OK 3. Click Forms to start entering case information for the debtor TIP If you want to alphabetize your client list by last name, enter the last name, first name in the Index As field. When you open a client file, the list of Forms and Schedules appears, which lists the Official Forms and Schedules for this client according to the chapter of filing and type of debtor. You may review additional forms for your client in the folders called Local Forms and Supplemental Forms at the bottom of the Forms and Schedules list. Select the forms, the type of debtor and chapter. Then, enter the name of your debtor(s), the office file number, how to index the file, and select the jurisdiction for the case. Then click OK. Links & Shortcuts for Data Entry Best Case Bankruptcy helps you link information contained on different schedules. For example, a property description and market value can be linked with other schedules so that this information does not have to be retyped. The shortcuts minimize the time it takes to enter information, as well as provide consistency between schedules, and reduce the chance of errors when typing information. Schedules A, C and D Links can be made from either of the property schedules, A or B, to Schedule C when property is exempt, and to Schedule D when property secures a claim. From the Forms and Schedules Menu, double-click on Schedule A Real Property to open the summary window for property owned by the client. To view or edit an item, doubleclick the item, or click Change in the lower right corner. The entry window for Schedule A appears. Notice the three tabs at the top labeled Description, Liens and Exemptions. 1. The Description Tab lists the description of the property, nature of debtor s interest, market value and other information about the property that will be listed on Schedule A The three tabs at the top are shortcuts, which link a piece of property to the exemption statute you ve applied and any liens listed on Schedule D for this item. 2. The Exemption Tab provides a shortcut to Schedule C and displays a list of the statutes that will print on Schedule C 4 Best Case Bankruptcy: The Fundamentals

5 Prepare a New Petition TIP Best Case Bankruptcy provides the federal exemption statutes, as well as statutes for each of the 50 states, plus the District of Columbia and Puerto Rico. At any time while preparing a client file, you can change the exemption election in the Filing Information Tab of the Voluntary Petition. 3. The Liens Tab shows all liens against a piece of property and lists them on Schedule D. You ll see the creditor s name, the nature of the lien, any senior liens and any unsecured portions. Click Change to view the entry screen for Schedule D. Again, the market value and description of property appear grayed out because these have been copied over from Schedule A. Click Cancel to exit this window, then Cancel again at the lien summary window. Click Close to return to the Forms and Schedules menu. Creditor Schedules & Treatments for the Means Test, Form 8 or a Chapter 13 Plan Information on the creditor schedules, D, E or F, is linked to other parts of the bankruptcy case. For secured claims, you will be able to complete the Form 22 (means test) treatment for the claim, and when applicable, indicate the debtor s intention for Form 8, or determine the appropriate treatment for the claim on the 13 Plan Calculator. Shortcuts for Moving Creditors from One Schedule to Another In the Summary List windows for Schedules D, E and F, you ll see Move to E/F, Move to D/E and Move to D/F buttons. To move a creditor to another schedule, just highlight it in the Summary List window and click the Move button, then choose the new schedule. More shortcuts are available at the top of this screen, which connect this creditor to the Means Test Treatment Tab, the Chapter 13 Treatment Tab, and any codebtors or additional notice parties. You can easily transfer a creditor between schedules using the Move button located at the bottom of the entry screens for Schedule D, E and F. Best Case Bankruptcy: The Fundamentals 5

6 Workflow Efficiency Tools MyCaseInfo Streamline the Initial Data Collection and Entry Process Available for Chapter 7 and Chapter 13 consumer cases, MyCaseInfo helps you collect bankruptcy-specific information from clients using a web-based questionnaire. It allows you to preview the clients responses and download the data into Best Case. MyCaseInfo consists of two main portals Attorney Administration site: Manage all activity in one online location. You can invite a client, preview data, send and answer client communications, access past invoices, manage your credit card on file and more Client Questionnaire site: Provides clients a secure and easy way to enter bankruptcy-related data online with tools that allow them to communicate with the attorney, access helpful instructions and more Key Benefits Customize the client questionnaire by requiring your client to complete all or certain sections including Income, Debts, Expenses and more Preview all client entered information at any time to check progress and quality Directly import data into Best Case Bankruptcy Easily communicate with your clients through and question flags Gain access to attorney and client help centers for helpful guides, videos and FAQs Manage billing information and view your past invoices online 1 Send your client an invitation to begin using MyCaseInfo. Customize what sections of the bankruptcy questionnaire they need to complete and include any special instructions. 2 Once your client logs in, they get detailed instructions and access to helpful tools and videos. Questions are formulated to be simple and easy to understand. 3 Review client progress at any time and preview all data entered for accuracy prior to purchasing and downloading. To Get Started First Import is FREE 1. Complete the Online Request Form at 2. Invite as many clients as you want but only pay for the downloaded client files 3. You re billed $8 per import in one monthly payment 4 After downloading the client data from MyCaseInfo, easily import the information into a new or existing client file. 6 Best Case Bankruptcy: The Fundamentals

7 Workflow Efficiency Tools Credit Report Import Download Electronic Credit Reports into Best Case The Best Case Credit Report Import feature provides an easy, convenient, and fast way to enter claims directly on the creditor schedules without leaving Best Case. All electronic credit reports contain creditor names, addresses, account numbers and more. Order a Credit Report 1. Open a client file 2. Select Credit Report from the top menu bar or from the Tools drop-down menu 3. Select Credit Reports for this Client 4. The Credit Report Order Wizard prompts you to order Authenticate a Client 1. Click Authenticate 2. A web page will load with a short series of multiple choice questions which only your debtor can answer 3. If your debtor s identity has already been authenticated, select Already Authenticated Click Import Reports to Best Case to transfer data to Schedules. Download Credit Reports 1. Select Download Reports 2. The report downloads and is ready to be imported into Best Case Import into Best Case 1. Select Import Reports to Best Case 2. Choose to import all debts to Schedule F or select a schedule for each debt 3. To import all debts to Schedule F, click the Tag All as Sch F button at the top of the window, then click the Import to Client button 4. To select a schedule for each debt, highlight a creditor record and press D, E, F or G on your keyboard or use the Sch D, Sch E, Sch F or Sch G button at the top of the window Note: For Schedule E claims, you ll need to select the type of priority for each debt 5. Select the appropriate schedule for each creditor 6. Click Import to Client when you have marked each record that you want to import Click Import Reports to Best Case to transfer data to Schedules. TIP To omit claims that have been paid and have a $0.00 balance OR to show claims with only an open status, check the appropriate box in the lower left corner. To Get Started Set up an account with one or all three of our credit report partners: A Suite Solution CIN Legal Data Services Quadrant Data Solutions Best Case Bankruptcy: The Fundamentals 7

8 Means Test Calculator Overview of the Best Case Means Test Calculator The Means Test implemented by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is a required form and set of calculations that determines whether a presumption of abuse exists for a debtor in a consumer bankruptcy case. The Means Test, also known as Form 22, is a formula that measures a debtor s income against a set of monthly expenses and debt payments. Note: For step-by-step instructions for completing the Means Test see the Means Test Guide. The Median Test The first portion of the Means Test compares the debtor s Current Monthly Income (CMI, an average of the last six months, excluding Social Security benefits) to the state median income. If the debtor s income is less than the median for the debtor s household size, the full Means Test does not apply, and there is no presumption of abuse. The Complete Means Test If the debtor s income is higher than the state median, the debtor must complete the full Means Test. The Disposable Monthly Income (DMI) is then calculated and is based on expenses which are subtracted from a debtor s current monthly income. To Open the Means Test Calculator Double click on Form 22A Statement of Current Monthly Income in the Forms and Schedules menu. Median Test Tabs General: Indicate location, marital status, family and household size Income: Determine current monthly income Median: Compare the debtor s income with the state median Note: If the debtor s income falls below the state median the test ends here and there is no presumption of abuse. Living: Deduct the IRS living allowance Health: Deduct the IRS health care allowance Housing: Deduct the IRS housing allowance Car: Deduct the IRS transportation allowance Necessary: Deduct necessary expenses Additional: Deduct additional expenses Debt: Deduct payments for secured claims, priority debts and more Summary: Review the results of the debtor s means test Special: Enter special circumstance details Helpful tools make the Means Test easier and more flexible Running Calculations At the bottom of the screen the Current Monthly Income is calculated as you enter the data. It indicates if the income is under or over the median income for a Chapter 7 Current IRS data and Census Bureau tables The Best Case Means Test Calculator is always up to date with the most current IRS data and Census Bureau figures. There are helpful charts and tables that provide you with the correct information Override options are available for some IRS allotments CMI Details: Offers an easy way to average the debtor s income over the last six months, allowing you to calculate CMI and generate an attachment with a complete record of the debtor s income sources In the General Tab enter your client s location, marital status which you can choose from 4 options, the number of dependents, and household size. 8 Best Case Bankruptcy: The Fundamentals

9 Chapter 13 Plan Calculator Overview of Calculating a Chapter 13 Plan in Best Case What is the Chapter 13 Plan Calculator? The Best Case Chapter 13 Plan Calculator helps you develop a workable plan; it performs various calculations including the minimum monthly payment needed to repay creditors or the number of months needed to repay creditors and then displays how the funds will be distributed. Before you Calculate, Assign Classifications to Creditors Each portion of each claim must be given a payment classification by the user. Calculating a Chapter 13 Plan 1. In the Summary Tab, insert a question mark into the payment field and declare the term of the plan in the corresponding term field 2. Enter the unpaid balance of attorney and/or filing fees that are to be paid through the plan 3. Enter the percentage or amount to be paid to unsecured nonpriority claims 4. Click Calculate in the bottom left hand corner 5. Best Case calculates a feasible Chapter 13 Plan payment based on the criteria entered TIP Assign classifications in the 13 Plan Treatment Tab in the creditor information entry screen for each claim. Several Commonly Used Plan Classifications Selecting the appropriate classification is necessary for the Chapter 13 Plan Calculator to effectively calculate your plan. Secured Fixed Payment Input the term and interest rate Secured Paid Prorata Input the interest rate Secured Long-Term Inside Plan Input the term and interest rate Secured Long-Term Outside Plan Input the term and interest rate Arrearage Fixed Payment Input the term and interest rate Arrearage Paid Prorata Input the interest rate Unsecured General Non-Priority Unsecured Priority Unsecured, special class, paid 100% Note: Best Case s intuitive calculator automatically recalculates figures to reflect changes made, for example: Adjust the percentage paid to unsecured creditors, and the payments are revised. Adjust the treatment of any creditors under the plan, and the payout schedule is updated. Adjust the monthly payment amount, and the fund distribution changes. Enter in payments then calculate the Plan in the Summary Tab Calculating a Step Plan 1. Enter the monthly payment amounts for each step, along with the number of months 2. Type a question mark for the number of months or payment of the last step 3. Click Calculate 4. A possible payment plan is calculated for the remaining step of the plan Plus You Can: Print detailed reports of the payment breakdown including a list of payments to individual creditors by month, split claims, a liquidation analysis, and a summary report Adjust the percentage going to the trustee, the interest to any particular creditor Use the Best Case Editor to make any changes to individual plans Best Case Bankruptcy: The Fundamentals 9

10 Electronic Case Filing OneTouch The Fastest Way to File What is OneTouch? First introduced in 2001, the Best Case OneTouch electronic filing system has set the standard as the most trusted and reliable ECF system available. In a few clicks, files are created in the proper format and are automatically uploaded to the Court s website. Once the files are successfully submitted, the Court receipt and a case number are automatically stored in your client file within the Best Case ECF Manager. Note: For step-by-step instructions for electronic filing with OneTouch see the Electronic Filing Guide. Three Easy Steps to File a Complete Petition with OneTouch 1. Select the filing type and click Next 2. Verify information and click Prepare Filing Select the type of filing, the divisional office and insert a date on signatures then click Prepare Filing. TIP Best Case automatically inserts /s/ (name) on signatures lines, as well as the date, when electronic files are created. 3. Click OneTouch to upload documents. Enter your login name and password and click File Case. Then sit back and watch as your files are uploaded to the Court s website Best Case Makes Electronic Filing Easy: The ECF Wizard prompts you through preparing your case BestScan allows you to scan documents such as pay stubs and credit counseling certificates, and generates PDF files for attaching to a form or schedule Court receipts and a case number are returned and saved under the ECF Manager for your files District-specific features have been added to help you meet your local requirements. Not only does Best Case contain a wide range of local forms, it puts the forms in the specified court order and fills in your court s URL when filing Review files and click OneTouch to submit. Sit back and watch the files automatically upload to the Court s website. Post-Petition Features and Functionality: ECF Express is a manual filing process that is used for postpetition documents. It simplifies uploading amendments, adding creditors and submitting supplemental documents by automating certain portions of the process on the Court s website Pay filing fees online with Pay Now Express. It s easy to pay fees with your credit card Receipts and assigned case number are saved in the ECF Manager where you can pay Court fees with Pay Now Express. 10 Best Case Bankruptcy: The Fundamentals

11 Workflow Efficiency Tool MyECFMail The CM/ECF manager, calendaring and case management solution that works seamlessly with Best Case Available as an add-on workflow tool to Best Case, MyECFMail automates the bankruptcy ECF process by downloading your Free Looks, posting bankruptcy events to the built-in ECF calendar and providing access to these communications in Best Case Bankruptcy. How MyECFMail Works There are three main components to MyECFMail: 1. Manager This houses all your incoming ECF s. View summary information of each case including case number and all case PDFs Automatically downloads and saves your Free Looks eliminating unnecessary and costly trips to PACER Easily sort and filter based on a variety of criteria View a daily list of calendar activities at a glance with the Events Console 2. MyECFMail Case Viewer View CM/ECF activity for a client right in Best Case Bankruptcy Docket Report Tab View case s and PDFs and view a daily list of your events Proof of Claims Tab Displays Proof of Claims including claim name, address, amount and view a daily list of your events Calendar Events Tab Lists events and meetings including location, date and time 3. ECF Calendar Bankruptcy-specific events are automatically added to the built-in calendar Auto-populates General Hearing, Discharge Deadlines, 341 Meeting, Confirmation Hearing and Continued Hearing Assigns rules and alarms to remind you of upcoming events Auto-transfers events to Microsoft Outlook or Google Calendar MyECFMail Manager: Read case s, access Free Look PDFs, filter by case number, debtor name and more. Case Viewer in Best Case: Click a tab to instantly view Docket Text, Proofs of Claim or calendar events, and easily print a list of items. Learn more about MyECFMail: ECF Calendar: Upcoming case-related events auto-populate the ECF calendar and can be exported. Best Case Bankruptcy: The Fundamentals 11

12 Online Bankruptcy Resources and Tools Whether you re a seasoned professional or new to bankruptcy, here are a few helpful resources to keep you and your practice up to date with changes in the world of bankruptcy law. Look for more online: Join the National Association of Consumer Bankruptcy Attorneys to have access to a members-only section of the NACBA web site, and be able to attend their annual conventions and workshops. Plus, you can subscribe to their active listserv to discuss bankruptcy cases with other consumer bankruptcy attorneys across the country. The U.S. Trustee Program is part of the Department of Justice, and oversees administration of bankruptcy cases. The American Board of Certification certifies attorneys as specialists in business bankruptcy, consumer bankruptcy and creditors rights law. It is a non-profit organization, sponsored by The American Bankruptcy Institute and The Commercial Law League of America, dedicated to serving the public and improving the quality of bankruptcy and creditors rights law bars. Start subscribing to RSS Feeds to monitor the latest news on various bankruptcy blogs. We recommend using Google Reader, available at Some excellent bankruptcy blogs include: Bankruptcy Roundtable is an discussion group for bankruptcy attorneys to exchange information and ideas. To subscribe, send an message to listserve@bankrupt.com with subscribe roundtable, without the quotes, in the message. Bankruptcy ListServe is another discussion group, and is a very good resource for bankruptcy attorneys. To subscribe, send an message to listproc@polecat.law.indiana.edu with subscribe bankrlaw, without the quotes, in the message. Best Case Online Tools Access a suite of online tools to help calculate dates and formulas instantly. Quick Median Income Test: Enter the debtor s state, household size and average gross monthly income and the debtor will be compared to the state median income for the household size. If the debtor is under the median income the results will be in green and if they are over the median income the results are in red. Date Calculator: Add or subtract days, months and years to a specified date to identify time spans for the Statement of Financial Affairs, eligibility for a Homestead Exemptions Limit, etc. Between Dates Calculator: Enter a date range and quickly get the number of days between them. This is ideal for identifying the financial management requirement (180 days), etc. Holiday Calculator: Enter a specific year (ie 2011) and the calculator will automatically return a list of the observance dates of all Federal Holidays for that year. Visit: or access directly from the Tools Menu. Online Tools For more information call or visit Best Case Bankruptcy is the leading software solution for attorneys providing bankruptcy services to clients. Since 1993, Best Case has helped streamline the petition preparation and the electronic filing process. The building block of Best Case is providing software that works flawlessly and incorporates the ever-changing court requirements, on time to better serve your firm. CM_FDM_2P_ Best Case, LLC