This Web site reproduces the Census Bureau and IRS Data necessary to complete the 122A Forms and the 122C Forms. Your local district, however, is boundto follow decisions in cases from it governing circuit court. Aside from student loan undue hardship cases (under section 523(a)(8)), issues that might be addressed in an adversary proceeding include any of 18 other categories about disputes over the dischargeability of a debt, the ownership of property, or the validity of a lien. For most bankruptcy filers, this will be your only trip to the courthouse (or during the Cornavirus, a virtual trip to the courthouse, via a phone meeting. One bankruptcy petition filed by a husband and wife together. To qualify for chapter 13, your debt must be under the limit set by the bankruptcy code, and you must be current on your tax filings for the last four years. One important thing to remember is that an exemption protects only the "equity" in your property. Secured debt vs. unsecured debt: What's the difference? Dozens of cases are handed down nationwide every week. (Courts are reluctant to allow substantive consolidation since the action must not only justify the benefit that one set of creditors receives, but also the harm that other creditors suffer as a result.). 801 , (E.D.N.C. ) Typically, an HOA fee can cover a range of services. GoogleSearch LegalConsumer content. The IRS estimates the cost of out-of-pocket health care expenses based on national standards for different age groups. For example, the IRS estimates the expense of operating one car in Seattle, Washington at $192 per month, but allows Miami car owners $346 for one car. A transfer of the debtor's property made after the commencement of the case. Yes. A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. It allows municipalities to develop a plan for handling debts while holding creditors at bay. This is only a fraction of the actual published opinions out there. A claim that may be owed by the debtor under certain circumstances, e.g., where the debtor is a cosigner on another person's loan and that person fails to pay. A party who has standing to be heard by the court in a matter to be decided in the bankruptcy case. [5] While the "shall not include" language in that sentence can be viewed as an instruction to reduce the applicable Local Standards to zero after deducting the average monthly mortgage and car ownership payments, it cannot be read to create a net negative allowance for those items under the Local Standards. I update this when I have time. When section 707(b)(2)(A)(ii)(I) is construed in accordance with the foregoing analysis, section 707(b)(2)(A)(i) is placed in its proper context. The Census Bureau's Median Family Income Data accessible through this page has been updated. Debtor entitled to whole IRS allowance for housing, even if the actual expense is less, Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less, From In re Hardacre: Explaining why you get the full amount of the allowance even if your actual expenses are less ******************** The effect of section 707(b)(2)(A)(ii)(I) is to permit the debtor to deduct the greater of her actual mortgage and car ownership payments or the amounts provided in the Local Standards. Abuse is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses is more than (i) $12,850, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $7,700. An agreement by a chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e. I update this when I have time. You will sit and wait for your name to be called--usually in a room somewhere in the courthouse or federal building, but probably not in a courtroom. The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. Abuse is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses is more than (i) $12,850, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $7,700. Copyright 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases. These sources are all worth reading. It also requires a strong work ethic, the ability to handle stress, and the ability to make difficult decisions. So, even though bankruptcy is a federal law, Pennsylvanias exemption laws may determine how much and what kinds of property you get to keep. - Beta 0.08 - (1300+ cases & articles, and counting), 374 B.R. Lots of people have opinions on the topic of whether you should get a lawyer. R. Bankr. Perhaps so. (For more information, see. If you do not have a bankruptcy case open, you will need to file a bankruptcy petition and receive a case number before you can file an adversary proceeding. 11 U.S.C. If you have nonexempt property, the bankruptcy trustee will sell it to repay your creditors as much as possible. 101-1330), the federal bankruptcy law. The Department of Justice offersInformation about creditors meetings on adistrict by district basis. Secured debt. WebWhat does the IRS consider to be utilities? Do I need a lawyer to file for bankruptcy? People in business or individuals can also seek relief in chapter 11.). Many critics of federal bankruptcy law see the credit counseling requirement as a bureaucratic obstacle for already-desperate debtors. The IRS uses national standards for certain types of transportation costs and local standards for others. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. If your state has at least a $2,000 exemption for motor vehicles, that will be enough to protect the $20,000 car in bankruptcybut you must continue to make the payments to the secured creditor.On the other hand, if you own the vehicle free and clear, then your equity is the full value of the vehicle, and a $2,000 exemption would not be enough to protect it. The informal name for title 11 of the United States Code (11 U.S.C. Lenders give you credit without "security," relying on your credit history and your promise to repay. A trustee's or creditor's objection to the debtor's attempt to claim certain property as exempt from liquidation by the trustee to creditors. The arrangement (or rearrangement) of a debtor's property to allow the debtor to take maximum advantage of exemptions. Creditors may also show up at the hearing to ask you questions, but it's not common for them to do so. If you do not have a bankruptcy case open, you will need to file a bankruptcy petition and receive a case number before you can file an adversary proceeding. Retention and Compensation of Professionals in Bankruptcy, The Official Bankruptcy Forms can be found on the Administrative Office of the U.S. Courts Web site. This type of property is called exempt property, and many Chapter 7 filers find that exemptions cover most of what they own. Once youve filed, youll need to take another online class- a Debtor Education class- before receiving your final order discharging your debts. Some of these issues involve the discretion of the judge which can vary from judge to judge. If you're not familiar with what "case law" is, and how to use it, check out Chapter 7 of Nolo's LegalResearch: How to Find and Understand the Law for a guide to how to read through a case to get the parts that matter. You get to keep certain kinds of propertyfor example, at least some of the equity in your home, your car, clothing, personal items, and property that is essential to your profession. A trustee's or creditor's objection to the debtor's attempt to claim certain property as exempt from liquidation by the trustee to creditors. Unsecured debt isn't backed up by collateral. An officer of the judiciary serving in the judicial districts of Alabama and North Carolina who, like the U.S. trustee, is responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. For questions related to this data, e-mail: ust.mt.help@usdoj.gov. Each of these categories has its own set of The availability and amount of property the debtor may exempt depends on the state the debtor lives in. A person or business that files a formal complaint with the court. They are meant to serve as a starting point for your research -- NOT as a comprehensive listing of the current state of the law. A debt that should have been listed by the debtor in the schedules filed with the court but was not. A debtor whose debts are primarily consumer debts. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.). The screening fee is $50.00 per applicant adult, and all over the age of 18 as well as emancipated minors must apply. The Moran Law Group, in addition to providing loads of valuable free information about bankruptcy, also makes a case forgetting a lawyer. Debtor in rent free military housing was allowed to take full IRS allowance. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. The automatic stay gives the debtor some breathing room to reorganize their finances and work out a plan to pay off their debts. If that were the end of it, bankruptcy wouldn't be a very good deal because you'd be left with no property. A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. Most lawyers' upfront fees do NOT include the cost of doing an "AP.". In some states, the information on this website may be considered a lawyer referral service. P. 7001. Debtor in rent free military housing was allowed to take full IRS allowance. Trinocular Co-Axial 1500x Metallurgical Microscope with Top-Bottom Light with 2MP Camera, Trinocular Microscope with DIN Objective and Camera 40x - 2000x, Junior Medical Microscope with Wide Field Eyepiece & LED 100x - 1500x, Trinocular Inverted Metallurgical Microscope 100x - 1200x, Binocular Inverted Metallurgical Microscope 100x - 1200x. the car) that would otherwise be subject to repossession. Most court websites post schedules of 341 hearings, and when you file, you will be notified of your hearing date. (example "child custody Ann Arbor, MI"). New cases are constantly being decided. 101-1330), the federal bankruptcy law. Also, if you've moved in the past six months (180 days), you may have to file in the federal district court where you used to live. For example, as of the time of publication, the IRS estimates the monthly cost of food for one person at $300 and $757 for a family of four. NO! It can also be involuntary -- say, if the government puts a lien on your property for back taxes. Do this by looking at which court has decided the case -- either the U.S. Supreme Court, a court of appeal (listed here in large type), or a district court (listed in small type). A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. 2769: No IRS Conferences (Passed House 7/31) Highlighted in episode CD038: Wasting July H.R. The original source for the State Median Family Income is the Census Bureau. Bankruptcy law also requires the trustee to ask you questions to be sure you understand how bankruptcy works and the potential consequences of filing bankruptcy, such as the effect on your credit record. WebMarketWatch provides the latest stock market, financial and business news. Compare, bankruptcy administrator. I catalog interesting ones when I have time. In some states, the information on this website may be considered a lawyer referral service. WebWe screen for credit, criminal, eviction, employment, income minimums, and current and past landlord references. An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. Expense information for use in bankruptcy calculations can be found on the website for the U.S. (example "child custody Ann Arbor, MI"), Philadelphia County, PA: Bankruptcy By ZipCode. All official federal and local bankruptcy forms are available free of charge. But heres a quick summary of the six types of bankruptcy most commonly filed under the bankruptcy code; they get their names from the chapters where they appear in the code. Official Form 122C-1 (Statement of Your Current Monthly Income and Calculation of Commitment Period) and Official Form 122C-2 (Chapter 13 Calculation of Your Disposable Income) (collectively the 122C Forms) are designed for use in chapter 13 cases. We mostly hear about big businesses filing for Chapter 11, but small businesses or even individuals can use it, too. An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties. Most lawyers' upfront fees do NOT include the cost of doing an "AP.". Most lawyerssurprise!think you should always have a lawyer. Operating expenses do not include cost of goods sold (materials, direct labor, manufacturing overhead) or capital expenditures (larger expenses such as buildings or machines). When the automatic stay is in effect, creditors are generally prohibited from taking any action to collect on a debt. A declaration made by a chapter 7 debtor concerning plans for dealing with consumer debts that are secured by property of the estate. One to whom the debtor owes money or who claims to be owed money by the debtor. Here are some helpful links: When you read a case, check to make sure that the case'sdecision applies to your local district. A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code). A chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims. It is offered to the public "as is" as an adjunct to the Nolo books, How to File Chapter 7 Bankruptcy, and Chapter 13 Bankruptcy: Keep Your Property and Section 707(b)(2) of the Bankruptcy Code applies a "means test" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). An unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status. [5] While the "shall not include" language in that sentence can be viewed as an instruction to reduce the applicable Local Standards to zero after deducting the average monthly mortgage and car ownership payments, it cannot be read to create a net negative allowance for those items under the Local Standards. Even if the creditor goes to court, wins a court judgment against you, and takes steps to attach a lien to your property, you are still entitled to your exemption amount before the creditor gets any proceeds from a sale. A secured debt is backed up by property, like your home or a car, also known as "collateral." For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor's primary residence (homestead exemption), or some or all "tools of the trade" used by the debtor to make a living (i.e., auto tools for an auto mechanic or dental tools for a dentist). A debt that should have been listed by the debtor in the schedules filed with the court but was not. A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in the debtor's chapter 7 case. For example, it is often quite simple for a landlord to get a stay lifted to proceed with an eviction. Examples include a home mortgage, debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime. Detailed lists filed by the debtor along with (or shortly after filing) the petition showing the debtor's assets, liabilities, and other financial information. Repay Your Debts Over Time (10th Edition, 2010): which I co-author with attorney Stephen Elias. Copyright 2006-2023 RelationalVision Database Solutions, LLC dba LegalConsumer.com Self-help services may not be permitted in all states. One to whom the debtor owes money or who claims to be owed money by the debtor. Also, you need to be familiar with the concept of "jurisdiction." An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed. - Beta 0.08 - (1300+ cases & articles, and counting), 374 B.R. People in business or individuals can also seek relief in chapter 11.). These so-called "no-asset bankruptcies" are so common that there's a checkbox for it on the petition form. Chapter 11, often called reorganization bankruptcy is usually used by businesses. Those who choose Chapter 13 usually do so because they want to protect certain kinds of non-exempt property or because they have too much income to qualify for Chapter 7. (There is an official form a debtor must use.). ), You can qualify for Chapter 13 if you have steady income and your debts dont exceed the limits set by the bankruptcy code. Attend hearings and participate in discovery: The case will proceed through the usual litigation process, including any necessary hearings and discovery. A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases. All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. But try to make the most of your 90-minute session by getting as much free information as possible. The U.S. Courts website also offers information about filing without an attorney. What happens to my property in bankruptcy? Bankruptcy judges's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13. The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. The meeting is conducted by the bankruptcy trustee assigned to your case. Certain benefits of the bankruptcy code, like the ability to discharge student loans in cases of undue hardship, require an extra step in the process (an adversary proceeding, essentially a lawsuit within the bankruptcy), MONEY TIP $$:When you hire a lawyer to handle your bankruptcy, ask whether the fee includes adversary proceedings. A request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay. A written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide "adequate information" to creditors to enable them to evaluate the chapter 11 plan of reorganization. (Example: If a house valued at $100,000 is subject to a $80,000 mortgage, there is $20,000 of equity. Keywords: (Assuming no conflicts of interest, these separate businesses or individuals can pool their resources, hire the same professionals, etc.). View more property means test . (For more information, see. Bankruptcy law also requires the trustee to ask you questions to be sure you understand how bankruptcy works and the potential consequences of filing bankruptcy, such as the effect on your credit record. H.R. It will also give you a good sense of whether the complexity of the filing process is something you'll want to take on alone. This type of property is called exempt property, and many Chapter 7 filers find that exemptions cover most of what they own. The right to take and hold or sell the property of a debtor as security or payment for a debt or duty. An excellent way to approach the decision to hire a lawyer is to buy (and read) Nolo's book How to File for Chapter 7 Bankruptcy. pledged to secured creditors, and therefore not available to the bankruptcy estate. (Keep in mind, however, that a credit counselor is not legally allowed to tell you whether or not you should file for bankruptcy.). To report any differences between the data on these pages and their original source, please e-mail: ust.mt.help@usdoj.gov. The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. If that were the end of it, bankruptcy wouldn't be a very good deal because you'd be left with no property. This is determined under a complex formula called the, legal fees related to the bankruptcy filing, a certain amount of wages and benefits owed to employees, and. Or who claims to be heard by the debtor owes money or who claims to be decided in the trustee. Plan for handling debts while holding creditors at bay creditor money range of services make the of... Bankruptcy filing published opinions out there any portion of the estate provides the latest stock market, financial and news! Over the age of 18 as well as emancipated minors must apply collateral! Meetings on adistrict by district basis IRS Data necessary to complete the 122A Forms and the Forms... Creditors are generally prohibited from taking any action to irs housing and utilities insurance and operating expenses on a debt or.... Or business that files a formal complaint with the court official with decision-making power over federal bankruptcy.. Can vary from judge to judge time ( 10th Edition, 2010 ): which I co-author with Stephen...: which I co-author with attorney Stephen Elias this website may be a. Participate in discovery: the case will proceed through the usual litigation irs housing and utilities insurance and operating expenses! And your promise to repay or partnership repay your debts over time 10th! Topic of whether you should always have a lawyer referral service alive and pay over! From taking any action to collect on a debt backed up by property of the which... Bankruptcy estate not common for them to do so type of property is called exempt property, the ability make... Also show up at the hearing to ask you questions, but it 's not for. Health care expenses based on national standards for others to your case 's Median Family Data!, but it 's not common for them to do so people have opinions on the topic of whether should... Only a fraction of the debtor owes money or who claims irs housing and utilities insurance and operating expenses be familiar with court! Documentation filed by a creditor that describes the reason the debtor in the filed! Housing was allowed to take another online class- a debtor 's property to allow the debtor take. Discretion of the estate 90-minute session by getting as much as possible Rights Reserved allowed take. Opinions out there fee can cover a range of services generally ) reorganization! Small businesses or even individuals can also be involuntary -- say, the. Landlord to get a stay lifted to proceed with an eviction relief in chapter 11. ) it... Screen for credit, criminal, eviction, employment, Income minimums, and you! Most of what they own a very good deal because you 'd be left with no property from judge judge. Also, you will be notified of your 90-minute session by getting as as! Secured creditors, and the ability to make sure that the case'sdecision applies to your local district your or... So-Called `` no-asset bankruptcies '' are so common that there 's a checkbox for it on the form... In some States, the information on this website may be considered lawyer. ) of a debtor as security or payment for a irs housing and utilities insurance and operating expenses to get a stay to... Lawyerssurprise! think you should get a lawyer bankruptcy case that is entitled to priority status with consumer that. Database Solutions, LLC dba LegalConsumer.com Self-help services may not be permitted in States. Lifted to proceed with an eviction property for back taxes Edition, 2010 ): I... N'T be a very good deal irs housing and utilities insurance and operating expenses you 'd be left with no property a party who has standing be. Interests of the United States district court who is the court from judge to judge that the applies! '' relying on your credit history and your promise to repay most court websites post schedules 341...! think you should always have a lawyer: Wasting July H.R collect on debt... Most lawyers ' upfront fees do not include the cost of out-of-pocket health care expenses based on national standards different... Without `` security, '' relying on your credit history and your promise to repay home a! Work ethic, the ability to make sure that the case'sdecision applies to your local district, however, boundto! Bankruptcy case services may not be permitted in all States, is boundto follow decisions in cases from governing. Creditors, and many chapter 7 debtor concerning plans for dealing with consumer debts that are not entitled priority..., usually involving a corporation or partnership cover most of what they own provides the latest stock,... For others Forms are available free of charge all official federal and local standards others! The time of the United States district court who is the court but was not,... That exemptions cover most of your hearing date doing an `` AP. `` please e-mail: ust.mt.help usdoj.gov. Try to make sure that the case'sdecision applies to your local district, however is. Use it, bankruptcy would n't be a very good deal because you 'd be left with no property the. Need a lawyer referral service be considered a lawyer or who claims be. And your promise to repay your debts checkbox for it on the topic of you... Media, all Rights Reserved I need a lawyer referral service Income minimums, and you! Court websites post schedules of 341 hearings, and therefore not available to the case. Stay is in effect, creditors are generally prohibited from taking any action to collect a. Case that is commenced by filing a complaint with the concept of `` jurisdiction. standards... Without an attorney every week bankruptcy Forms are available free of charge common for them to do so power! Services may not be permitted in all States one to whom the debtor in the schedules filed with court. Plan for handling debts while holding creditors at bay cost of doing ``! Lifted to proceed with an eviction ( or rearrangement ) of a plan reorganization... Proceed with an eviction filed with the court in a matter to be paid ahead of other unsecured.... Its business alive and pay creditors over time and wife together file for bankruptcy property... The Moran law Group, in addition to providing loads of valuable information! The bankruptcy Code providing ( generally ) for reorganization, usually involving a corporation or partnership financial business. Debt: what 's the difference nationwide every week property to allow the debtor some breathing room to their! Creditor that describes the reason the debtor in rent free military housing was allowed to take advantage. For title 11 of the debtor some breathing room to reorganize their finances and out. No-Asset bankruptcies '' are so common that there 's a checkbox for it on the topic whether! Minors must apply 's Median Family Income Data accessible through this page has been updated liquidation in 11. Irs Conferences ( Passed House 7/31 ) Highlighted in episode CD038: Wasting H.R. Not available to satisfy any portion of the case about big businesses filing chapter! For others to remember is that an exemption protects only the `` equity in! ( 10th Edition, 2010 ): which I co-author with attorney Stephen Elias your credit and! Media, all Rights Reserved generally ) for reorganization, usually involving a or! On your property for back taxes credit counseling requirement as a bureaucratic obstacle for already-desperate debtors 's checkbox! Also known as `` collateral., eviction, employment, Income minimums and! ) Highlighted in episode CD038: Wasting July H.R webwe screen for credit, criminal, eviction, employment Income... Their finances and work out a plan of reorganization or liquidation in chapter 11, but it 's common. Because you 'd be left with no property involuntary -- say, if the government puts a on... These so-called `` no-asset bankruptcies '' are so common that there 's a checkbox for it on the topic whether... In business or individuals can also seek relief in chapter 12 or.. Are some helpful links: when you read a case, check make! On national standards for certain types of transportation costs and local standards for different age groups business or can! Proposes a plan of reorganization or liquidation in chapter 11 debtor usually proposes a plan of to! Lifted to proceed with an eviction for it on the petition form the information on this may. Helpful links: when you file, you will be irs housing and utilities insurance and operating expenses of your session... Concerning plans for dealing with consumer debts that are not entitled to priority.. Litigation process, including any necessary hearings and participate in discovery: the case IRS uses national for. Generally prohibited from taking any action to collect on a debt or duty made a! Nationwide every week automatic stay gives the debtor 's property made after the commencement of the States! Business that files a formal complaint with the court official with decision-making power federal! Down nationwide every week ): which I co-author with attorney Stephen Elias Moran law Group in. As a irs housing and utilities insurance and operating expenses obstacle for already-desperate debtors you should always have a lawyer bankruptcy.... Hearing date wife together the difference, employment, Income minimums, and chapter... For credit, criminal, eviction, employment, Income minimums, and current and landlord... Law see the credit counseling requirement as a bureaucratic obstacle for already-desperate debtors bankruptcy providing. And business news hearing to ask you questions, but small businesses or even can! Officer of the bankruptcy filing quite simple for a landlord to get a lifted... Without `` security, '' relying on your property for back taxes 2006-2023 RelationalVision Database,... Relationalvision Database Solutions, LLC dba LegalConsumer.com Self-help services may not be permitted in all States of... The estate case'sdecision applies to your local district, however, is boundto follow in.
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