Customer list.. will my customers be contacted?

[maffy]

I have a few questions that I hope you all can help me out with. I am self employeed (sole proprietor) and am getting ready to file ch 7 in few days. On Schedule B there's a section for Customer Lists. This is where I list the customers / companies that I do business with, isn't it? If I am correct, will the trustee contact them? Not too jazzed on them knowing about my upcoming filing ....

[maffy]

Really not sure I should list anything in this section... my clients are business clients.

This is what section 24 of Schedule B states: Customer lists or other compilations containing personally identifiable information (as defined in 11 U.S.C. § 101(41A)) provided to the debtor by individuals in connection with obtaining a product or service from the debtor primarily for personal, family, or household purposes.

Here are the code definitions I've found searching the internet -
11 U.S.C. § 101 : US Code - Section 101: Definitions
(41) The term "person" includes individual, partnership, and corporation, but does not include governmental unit, except that a governmental unit that - (A) acquires an asset from a person - (i) as a result of the operation of a loan guarantee agreement; or (ii) as receiver or liquidating agent of a person; (B) is a guarantor of a pension benefit payable by or on behalf of the debtor or an affiliate of the debtor; or (C) is the legal or beneficial owner of an asset of - (i) an employee pension benefit plan that is a governmental plan, as defined in section 414(d) of the Internal Revenue Code of 1986; or (ii) an eligible deferred compensation plan, as defined in section 457(b) of the Internal Revenue Code of 1986; shall be considered, for purposes of section 1102 of this title, to be a person with respect to such asset or such benefit.

(41A) The term "personally identifiable information" means - (A) if provided by an individual to the debtor in connection with obtaining a product or a service from the debtor primarily for personal, family, or household purposes - (i) the first name (or initial) and last name of such individual, whether given at birth or time of adoption, or resulting from a lawful change of name; (ii) the geographical address of a physical place of residence of such individual; (iii) an electronic address (including an e-mail address) of such individual; (iv) a telephone number dedicated to contacting such individual at such physical place of residence; (v) a social security account number issued to such individual; or (vi) the account number of a credit card issued to such individual;

I know this a lot, but wanted to give more to see if anyone could help me out. Thanks!

[MSbklawyer]

Please don't try to do a business case pro se.

That being said, the question about customer lists that you're referring to is asking about assets. Some large customer lists are assets that the trustee could conceivably sell for money. No, they are not asking you to list all your customers on the schedules. If you do have a customer list of commercial value, you would list it on your schedules by describing it in general terms; for example, "List of 250 customers from 4 surrounding states who have ordered widgets from My Company, Inc."

[maffy]

Please don't try to do a business case pro se.

That being said, the question about customer lists that you're referring to is asking about assets. Some large customer lists are assets that the trustee could conceivably sell for money. No, they are not asking you to list all your customers on the schedules. If you do have a customer list of commercial value, you would list it on your schedules by describing it in general terms; for example, "List of 250 customers from 4 surrounding states who have ordered widgets from My Company, Inc."

Thank you for your response. NO, I'm not filing pro se - but I've been filling out all my paper work for my attorney. I interperted this section to be asking for a list of all my customers, but none of them owe me money at this point in time, so they wouldn't be considered asset then, would they? Plus it's a small list of businesses, not a consumer list. I'm sure they wouldn't appreciate being name in the petion and wouldn't it even be against some privacy policies to do so too?

When I supplied the info to the paralegal she asked me what the list was for. When I told her I was listing the clients that I do business with throughout the year, she just said OK, but it made me start to question whether I should add it at all.

I think I should ask her to remove it and leave that area blank, before filing (and/or to ask the atty what's needed in that area). Yes - I don't know exactly what I'm doing, that's why I've retained and atty. I'm just filling out the forms to the best of my ability, but I HOPE they'll let me know if I've made a mistake... like in this area. For the most part I think that everything else I think looks fine.

Thank again for your response and if anyone else can shed some light about this area, please feel free to chime in...

[tcreegan]

Hi maffy,

The list itself can be an asset. A marketing list. Something you would sell to someone; "I have a list of 1,243 businesses in the tri-state area who purchased paper towels in the last 6 months. I can sell it to you for $xxx" Of course nowadays, you just sell electronic access to the list for a subscriber fee.

This would be different from a list of your accounts.

Not much help on how to list what list on Schedule B though....

Tom in Colo

[maffy]

But so you both seem to agree the "detailed list" (name of each company and their addresses) should NOT be included. I don't think it should be included on a public petition either. If the trustee wants to check my books to verify my income and see all that later, no problem... I just don't want it on a public petition if it isn't necessary.

My business is quite small and my client list is less than 50, and I have no inventory (provide service labor and or computer files for the most part and can service almost any type business). My tools are really the only asset in my business - my computer and the software I use to do what I do. This does not exceed the exemptions for my state for tools of trade.

Now the question is should I include a general list, and how to word it, as MSBklawyer mentioned above - or no list at all? Sent an email to the atty and his assistant earlier today. Still no reply..

Thanks so much for your responses!

[tcreegan]

Hi maffy,

Despite the wording, it is not a list of your customers/accounts. Counterintuitive, I know. It would be for a list you bought from someone or a list you made that you could sell to somebody.

If you have a privacy agreement that prohibits selling your customer list, it is not an asset/has no value/not entered

If you don't have a privacy agreement that prohibits selling your customer list, you enter "customer list" on schedule B line 24 and put "unknown" for the value (unless you have tried to sell it before and know what it is worth)

You don't put the contents of the list on schedule B

ref: Bankruptcy for Small Business Owners: How to File for, Part 7 By Stephen Elias, Bethany K. Laurence

Good luck w/ your filing!

Tom in Colo

[maffy]

Hi maffy,

Despite the wording, it is not a list of your customers/accounts. Counterintuitive, I know. It would be for a list you bought from someone or a list you made that you could sell to somebody.

If you have a privacy agreement that prohibits selling your customer list, it is not an asset/has no value/not entered

If you don't have a privacy agreement that prohibits selling your customer list, you enter "customer list" on schedule B line 24 and put "unknown" for the value (unless you have tried to sell it before and know what it is worth)

You don't put the contents of the list on schedule B

ref: Bankruptcy for Small Business Owners: How to File for, Part 7 By Stephen Elias, Bethany K. Laurence

Good luck w/ your filing!

Tom in Colo

Thanks Tom! You're the best! Now I understand!!!