American LegalNet, Inc. www.FormsWorkFlow.com APPENDIX GSTATEMENT OF INFORMATION REQUIRED BY 11 U.S.C. 247 341INTRODUCTIONPursuant to the Bankruptcy Reform Act of 1994, the Office of the United States Bankruptcy Administratorhas prepared this information sheet to help you understand some of the possible consequences of filing abankruptcy petition under chapter 7 of the Bankruptcy Code. This information is intended to make you aware of -(1) the potential consequences of seeking a discharge ln bankruptcy, including the effects on credithistory;(2) the effect of receiving a discharge of debts in bankruptcy;(3) the effect of reaffirming a debt; and(4) your ability to file a petition under a different chapter of the Bankruptcy Code.There are many other provisions of the Bankruptcy Code that may affect your situation. This statementcontains only general principles of law and is not a substitute for legal advice. If you have any questions or needfurther information as to how the bankruptcy laws apply to your specific case, you should consult with yourlawyer.WHAT IS A DISCHARGE?The filing of a chapter 7 petition is designed to result in a discharge of most of the debts you listed in yourbankruptcy schedules. A discharge is a court order that says that you do not have to repay your debts, but thereare a number of exceptions. Debts which usually may not be discharged in your chapter 7 case include, forexample, most taxes, child support, alimony, and student loans; court-ordered fines and restitution; debtsobtained through fraud or deception; debts which were not listed in your bankruptcy schedules; and personalinjury debts caused by driving while intoxicated or taking drugs. Your discharge may be denied entirely if you, forexample, destroy or conceal property; destroy, conceal or falsify records; or make a false oath. Creditors cannotask you to repay debts which have been discharged. You can only receive a chapter 7 discharge once every eight(8) years.WHAT ARE THE POTENTIAL EFFECTS OF A DISCHARGE?The fact that you filed bankruptcy can appear on your credit report for as long as 10 years. Thus, filing abankruptcy petition may affect your ability to obtain credit in the future. Also, you may not be excused fromrepaying debts that were not listed on your bankruptcy schedules or that you incurred after you filed bankruptcy.There are exceptions to this general statement. See your lawyer if you have questions.WHAT ARE THE EFFECTS OF REAFFIRMING A DEBT?After you file your bankruptcy petition, a creditor may ask you to reaffirm a certain debt or you may seekto do so on your own. Reaffirming a debt means that you sign and file with the court a legally enforceabledocument which states that you promise to repay all or a portion of the debt that may otherwise have beendischarged in your bankruptcy case. Reaffirmation agreements must generally be filed with the court sixty (60)days after the first meeting of creditors.Reaffirmation agreements are strictly voluntary. They are not required by the Bankruptcy Code or otherstate or federal law. You can voluntarily repay any debt instead of signing a reaffirmation agreement, but theremay be valid reasons for wanting to reaffirm a particular debt. This is particularly true when property you wish toretain is collateral for a debt.American LegalNet, Inc. www.FormsWorkFlow.com Reaffirmation agreements must not impose an undue burden on you or your dependents andmust be in your best interest. If you decide to sign a reaffirmation agreement, you may cancel it at any time beforethe court issues an order of discharge or within sixty (60) days after you filed the reaffirmation agreement with thecourt, whichever is later.If you reaffirm a debt and fail to make the payments as required in the reaffirmation agreement, thecreditor can take action against you to recover any property that was given as security for the loan and you mayremain personally liable for any deficiency. In addition, creditors may seek other remedies, such as garnishment ofwages.OTHER BANKRUPTCY OPTIONSYou have a choice in deciding what chapter of the Bankruptcy Code will best suit your needs. Even if youhave already filed for relief under chapter 7, you may be eligible to convert your case to a different chapter. Chapter 7 is the liquidation chapter of the Bankruptcy Code. Under chapter 7 , a trustee is appointed tocollect and sell, if economically feasible, all property you own that is not exempt from these actions.Chapter 11 is the reorganization chapter most commonly used by businesses, but it is also available toindividuals. Creditors vote on whether to accept or reject a plan, which also must be approved by the court. Whilethe debtor normally remains in control of the assets, the court can order the appointment of a trustee to takepossession and control of the business.Chapter 12 offers bankruptcy relief to those who qualify as family farmers. Family farmers must propose aplan to repay their creditors over a three-to-five year period and it must be approved by the court. Plan paymentsare made through a chapter 12 trustee, who also monitors the debtors' farming operations during the pendencyof the plan.Finally, chapter 13 generally permits individuals to keep their property by repaying creditors out of theirfuture income. Each chapter 13 debtor writes a plan which must be approved by the bankruptcy court. The debtorsmust pay the chapter 13 trustee the amount set forth in their plan. Debtors receive a discharge after theycomplete their chapter 13 repayment plan. Chapter 13 is only available to individuals with regular income whosedebts do not exceed $1,347,550 ($336,900 in unsecured debts and $1,010,650 in secured debts).AGAIN, PLEASE SPEAK TO YOUR LAWYER IF YOU NEED FURTHER INFORMATION OR EXPLANATION, INCLUDINGHOW THE BANKRUPTCY LAWS RELATE TO YOUR SPECIFIC CASE.By signing below, I/we acknowledge that I/we have received a copy of this document, and that I/we have had anopportunity to discuss the information in this document with an attorney of my/our choice.Date : DebtorJoint DebtorAttorney for Debtor(s)