§ 527. Disclosures
(a) A debt relief agency providing bankruptcy assistance to an assisted person
shall provide--
(1) the written notice required under section 342(b)(1) [11 USCS §
342(b)(1)]; and
(2) to the extent not covered in the written notice described in paragraph
(1), and 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--
(A) 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;
(B) 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 [11 USCS § 506] must
be stated in those documents where requested after reasonable inquiry to
establish such value;
(C) current monthly income, the amounts specified in section 707(b)(2) [11
USCS § 707(b)(2)], and, in a case under chapter 13 of this title [11 USCS §§
1301 et seq.], disposable income (determined in accordance with section
707(b)(2) [11 USCS § 707(b)(2)]), are required to be stated after reasonable
inquiry; and
(D) information that an assisted person provides during 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.
(b) A debt relief agency providing bankruptcy assistance to an assisted person
shall provide each assisted person at the same time as the notices required
under subsection (a)(1) 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:
"IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR
BANKRUPTCY PETITION PREPARER.
"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
HOW MUCH IT WILL COST. 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.
"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.
"If you choose to file a chapter 7 case, 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.
"If you choose to 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.
"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.
"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.".
(c) Except to the extent the debt relief agency provides the required
information itself after reasonably diligent inquiry of the assisted person or
others so as to obtain such information reasonably accurately for inclusion on
the petition, schedules or statement of financial affairs, a debt relief agency
providing bankruptcy assistance to an assisted person, to the extent permitted
by nonbankruptcy law, shall provide each assisted person at the time required
for the notice required under subsection (a)(1) reasonably sufficient
information (which shall be provided in a clear and conspicuous writing) to the
assisted person on how to provide all the information the assisted person is
required to provide under this title pursuant to section 521 [11 USCS § 521],
including--
(1) how to value assets at replacement value, determine current monthly
income, the amounts specified in section 707(b)(2) [11 USCS § 707(b)(2)] and, in
a chapter 13 case, how to determine disposable income in accordance with section
707(b)(2) [11 USCS § 707(b)(2)] and related calculations;
(2) how to complete the list of creditors, including how to determine what
amount is owed and what address for the creditor should be shown; and
(3) how to determine what property is exempt and how to value exempt property
at replacement value as defined in section 506 [11 USCS § 506].
(d) A debt relief agency shall maintain a copy of the notices required under
subsection (a) of this section for 2 years after the date on which the notice is
given the assisted person.
11 USCS § 527