
10/19/2021
Debt Line Law Office updated their business hours.
Debt Line Law Office updated their business hours.
Debt Line Law Office assists Oklahomans to get out from under the burden of debt through bankruptcy
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Debt Line Law Office updated their business hours.
Debt Line Law Office updated their phone number.
Debt Line Law Office updated their phone number.
Is Chapter 13 Bankruptcy Right For You?
Basically, Chapter 13 bankruptcy allows you to keep your property and repay all or a portion of your debt over a specified period of time, typically three to five years.
Chapter 11 Bankruptcy: The Debt Reorganization Plan
The key feature of Chapter 11 bankruptcy is the debt reorganization plan, which can allow you to reduce the principal value of certain secured debts and convert some secured debt to unsecured debt.
What To Expect During Chapter 13 Bankruptcy in Oklahoma
Chapter 13 is basically a debt repayment plan approved by a federal bankruptcy court and administered by a court-appointed bankruptcy trustee.
Chapter 7 Bankruptcy: What To Expect At The 341 Meeting
For information on what you should expect following your 341 meeting in Oklahoma, contact a knowledgeable Oklahoma bankruptcy attorney.
What will my life look like during Chapter 7 bankruptcy?
If it has become apparent that you should file Chapter 7 bankruptcy, or you begin planning to do so, you may be wondering what to expect while you are waiting to have your finances analyzed and your debt eliminated. Here is a glimpse into what your life will look like during Chapter 7 bankruptcy.
When it comes to bankruptcy, there are basically two phases:
Phase 1
This is the planning stage, where you sit down with your bankruptcy attorney to go over your case and answer a number of different questions, for example:
If you have any assets that may be used to pay creditors.
If you are behind on your mortgage.
If can catch up on your mortgage.
If you want to keep your home or other valuable assets.
This is also the phase in which you gather all of your financial documents and draft your bankruptcy petition. At this stage, it is completely up to you how fast things move along. Some people want to file their petition right away. However, unless you are being garnished, there really is no need to file immediately, and you and your attorney can take the time to plan for your bankruptcy. Some cases take longer to prepare than others. Some people meet with their attorney and file within a week; others wait months or a year before they file. Nonetheless, 90 days after you actually file your Chapter 7 bankruptcy petition, you will be debt free.
Phase 2
This phase is where you actually file your bankruptcy petition, and there are set timeframes associated with it. To start, a week after you file bankruptcy, you will get a notice from the bankruptcy court notifying you that they need to see two months of your pay stubs, two months of your bank statements, and your tax return from the last year. You must then complete your debt management class and go to the 341 meeting, where your creditors, along with the court-appointed trustee for your case, will seek to find out if you have any assets that can be used to pay off your debt. Two months after this time (three months from the time you file), you will receive a discharge of your unsecured debt.
During the time between the actual filing of your bankruptcy petition and your discharge, your credit and financial life will be on hold. The biggest benefit to filing bankruptcy is the protection from your creditors you receive during this phase. You can neither be sued nor have your wages or assets garnished, and all other creditor harassment must cease. On the other hand, you will not be able to go out and incur any new debt. You will basically be in a financial holding pattern while you wait to have your debts discharged. After you receive your discharge, you will immediately be able to begin rebuilding your credit.
Free Consultation: Bankruptcy Lawyer
For more insight on what your life will look like during Chapter 7 bankruptcy, or for a more detailed discussion of anything mentioned above, contact an experienced bankruptcy attorney who can further explain the aspects of life under Chapter 7 bankruptcy.
Call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer or (888) Debt-Line for an Oklahoma bankruptcy attorney handling bankruptcies statewide. With a ten (10) minute, free phone consultation with one of Debt Line's Tulsa bankruptcy lawyers, you can know what you qualify for and the costs and procedures involved in Chapter 7 bankruptcy.
Bankruptcy Court Hearings
Filing bankruptcy can help you keep your home and relieve yourself of overwhelming debt. However, along with these benefits come some serious responsibilities
Common Chapter 7 Bankruptcy Mistakes
When filing Chapter 7 bankruptcy, certain common mistakes can needlessly cost you money. Furthermore, some mistakes are illegal and they can prevent you from being able to eliminate your debts through bankruptcy. Here are seven of the most common mistakes made when filing chapter 7 Bankruptcy:
Leaving creditors off of your bankruptcy petition.
When you are preparing your bankruptcy petition, you and your attorney should list all of the secured debt you plan to keep, all unsecured debts you plan to eliminate, as well as disputed debts, old debts and anybody in the world who could claim that you owe them money. Any debt left off of the petition may not be discharged.
Making preferential payments.
It’s quite normal for you to prefer to pay off one debt before making payments on another debt. For example, if you get a tax refund or come into some money and you owe to many different creditors, you might use this money to make payments on certain debts while completely ignoring others. You may pay back a family member to whom you owe money, and ignore your credit card debt. If make these kind of payments within 1 year prior to filing bankruptcy, it may be classified as a preference payment and the bankruptcy trustee can take this money back from your family member to distribute it evenly amongst your creditors. In most cases, it will not sit well with that friend or family member from whom the money was reclaimed. So, in addition you to your financial struggles, you will then be faced with repairing a damaged personal relationship.
Transferring assets.
If you are about to file bankruptcy and you have an asset you are worried about losing, you cannot simply protect this asset by transferring it to a family member or someone else. If you do have a non-exempt asset you are worried about losing, you should let your bankruptcy attorney know. You may be able to transfer this asset to someone else for fair market value, but you must be careful of how the transfer is made so that it will not cause a problem for your bankruptcy case.
Applying for mortgage modifications
If you are in the process of applying to modify your mortgage payments and you are about to file bankruptcy, your bank may deny your application for a modification because you are about to file bankruptcy. So, if modifying your mortgage is important to you, wait until you have your modification finally approved or denied before filing bankruptcy.
Having a significant cash value in a whole life insurance policy.
Most life insurance policies are term life through your employer, but if you have a whole life policy with cash value and the designated beneficiary is someone other than your spouse or child, this policy will not be exempt from bankruptcy. If the amount is small, you may be able to protect it by using your wallet card exemption. If the amount is significant, be sure to alert your bankruptcy attorney.
Forfeiting tax returns.
If you file your bankruptcy in November or December, and you are expecting a large tax refund (more than a couple thousand dollars for a joint return, or more than 1000 dollars for an individual), you may have to turn over part of your refund to the bankruptcy trustee once it is received. If you are filing late in the year or early in the year before you receive the tax return, you should discuss with your bankruptcy attorney whether or not it would be better to file your bankruptcy after your return has been received and spent according to his or her instructions.
Waiting too long to file.
The worst Chapter 7 Bankruptcy mistake of all is waiting too long to file. If you are being sued and the creditor gets a judgment against you, they may start garnishing your wages and/or bank account and you will needlessly suffer further financial damage that could have easily been avoided by filing bankruptcy. Once you file bankruptcy, all collection action will be halted. So, file early and avoid spiraling further into financial ruin.
Free Consultation: Tulsa Bankruptcy Lawyer
Call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer or (888) Debt-Line for an Oklahoma bankruptcy attorney. Our attorneys have years of experience in Oklahoma bankruptcy law and in applying Oklahoma bankruptcy exemptions, so that Debt Line Law Office clients can keep their exempt property and still discharge unsecured debts through a Chapter 7 bankruptcy in Oklahoma. With a ten (10) minute, free phone consultation with one of Debt Line's Tulsa bankruptcy lawyers, you can know what you qualify for and the costs and procedures involved.
Five Things You Need to Know Before Filing Bankruptcy
Fairness under the law often leads to disappointed debtors who were unaware of the limitations of filing bankruptcy. In order to help you avoid unrealistic expectations, and to accomplish as much as the law allows, here are five things you need to know before filing bankruptcy.
Limitations of Filing Bankruptcy For Debt Relief
Federal bankruptcy law allows debtors to discharge certain debts in order to receive a fresh financial start. There are, however, limitations to what an individual can do under federal bankruptcy laws.
Bankruptcy vs. Debt Settlement
If you are having serious financial troubles and believe filing bankruptcy is the only solution to your problems, you may be wrong.
Federal bankruptcy laws have changed. It is now more difficult for consumers to qualify for Chapter 7 bankruptcy, and Chapter 13 bankruptcy will not protect you against foreclosures, wage garnishments and lawsuits.
Furthermore, filing bankruptcy will seriously damage your credit, which may worsen your financial woes by making it that much more difficult for you to obtain financing when you need it.
For these reasons, filing bankruptcy may not be the best option for dealing with your financial difficulties.
Debt Settlement
If you cannot make your debt payments, and simply need more time to settle your finances to get back on your feet, debt settlement may be your best option. Moreover, if you do not qualify to file and receive a discharge under federal bankruptcy laws, debt settlement may be your only option.
In a debt settlement program, you negotiate with your creditors to pay off a compromised amount of debt. Overall, this approach may be easier on your credit, but it will require you to make a lump sum payment and continue your monthly installment payments until the settlement kicks in.
Furthermore, unlike bankruptcy, which may completely wipe out your unsecured debt and give you a clean slate to begin rebuilding your credit, debt settlement only gets you out from under a portion of your debt. The rest you must pay off; and, in accordance with the Fair Credit Reporting Act, this debt may also stay on your credit report for several years. As a result, it may be more difficult for you to repair your credit. For this reason, some lenders view a debt settlement in the same light as a bankruptcy.
Bankruptcy or Debt Settlement
As a general rule, if your monthly debt payments do not exceed the amount of monthly disposable income you have, and you can afford to make the negotiated lump sum payment to the settlement company to satisfy your creditors, debt settlement may be a better option for you, as it will be less damaging to your credit rating. But you should be aware that there are tax liabilities for the voluntary forgiveness of your debt: the money you save will be treated as income for tax purposes.
On the other hand, if you have more monthly debt than disposable monthly income, and you can qualify for Chapter 7 bankruptcy, bankruptcy may be your best option. However, because of the damage bankruptcy does to your credit, some would say that it should only be considered a last resort.
Free Consultation: Bankruptcy Lawyer
Do you want to know whether you qualify for debt relief under the Bankruptcy Act? Would you like to know the costs and procedures of an Oklahoma bankruptcy? Call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer, or (888) Debt-Line to speak with an Oklahoma bankruptcy attorney handling bankruptcies statewide.
What is Chapter 11 Bankruptcy?
For a free confidential consultation about your rights in bankruptcy court and the potential benefits of filing bankruptcy, contact the Debt Line Law Office at (918) 878-0010.
Why Filing Bankruptcy Might Be The Best Thing You Ever Do
If your finances are in disarray, creditors are hounding you day and night, and you feel that you have lost control of your financial life, then filing bankruptcy might be the best thing that you ever do.
10 Myths About Filing For Bankruptcy
Many of the preconceived notions most people have about bankruptcy are simply false. Like most other things that people consider particularly frightening, bankruptcy gets a bad reputation based on half-truths. And much like other frightening ordeals, the truth is not as terrifying as previously thought. Here are 10 common myths about filing for bankruptcy:
Myth 1 - I am the only person going through this situation.
Millions of people across the United States and tens of thousands of Oklahomans file bankruptcy every year.
Myth 2 - Everyone will know that I've filed for bankruptcy.
When you file for bankruptcy, the court is required to send notice of your filing to all of your creditors. Afterward, your bankruptcy becomes a matter of public record, and it will be listed in your credit history. Nevertheless, individuals not involved in your bankruptcy will typically not find out about it unless you are very famous, or unless you tell them.
Myth 3 - I will lose everything by filing bankruptcy.
For most, the decision to file bankruptcy is difficult to make. To add to this difficulty, when you file bankruptcy, you may risk losing some cherished assets in the process. However, most people who file for bankruptcy keep everything and still receive a complete discharge of their unsecured debt.
Myth 4 - Filing for bankruptcy will not stop creditors from harassing me.
One of the biggest benefits of filing for bankruptcy is that during the time between the actual filing of your bankruptcy petition and your discharge, you will be protected from your creditors. You can neither be sued nor have your wages or assets garnished, and all other creditor harassment must cease.
Myth 5 - If I file for bankruptcy, my spouse has to file also.
In Oklahoma, you are not required to file for bankruptcy if your spouse has filed. If the debts that are causing your financial troubles belong to one spouse only, the indebted spouse may logically want to file individually. However, if you are jointly liable for the debts, and only one of you files for bankruptcy protection, creditors will simply seek to collect from the other spouse. In this case, it would make more sense for you both to file for bankruptcy jointly. Either way, it is your choice.
Myth 6 - Filing Chapter 7 bankruptcy will wipe out all of my debts.
Only unsecured debt will be discharged under Chapter 7 bankruptcy. In addition, certain types of debt such as child support, alimony, most student loans and most taxes will not be discharged by Chapter 7 bankruptcy.
Myth 7 - People who file for bankruptcy are deadbeats.
Most bankruptcy filings are the result of major life changes such as divorce, the loss of a long-held job or serious medical problems.
Myth 8 - I can run up my credit and then file for bankruptcy.
Even if you file for bankruptcy, you may still be held liable for any debt you incurred within 90 days of filing for bankruptcy, if it can be shown that you incurred this debt by providing false financial information or without the intent or ability to repay.
Myth 9 - After filing for bankruptcy, I will never be eligible for credit again.
After filing Chapter 7 bankruptcy, you will be more eligible for credit than before you filed. This is true because the discharge of debt you receive under Chapter 7 immediately improves your debt-to-income ratio, which is something that lenders consider heavily. As a result, you may find yourself receiving many credit offers in your mailbox. The downside is that these credit offers will carry high (sometimes extremely high) interest rates. But as long as you use this new credit as a tool for rebuilding your credit rating, rather than as everyday financial resources, you will soon be eligible for credit at more reasonable rates.
Myth 10 - Filing for bankruptcy will destroy my credit for 10 years.
Chapter 7 bankruptcy will remain on your credit report for ten years after filing, and Chapter 13 will remain for seven years. However, lenders are aware that after receiving a discharge under Chapter 7 bankruptcy, you will not be able to file again for another 8 years, which makes you much less of a credit risk. Furthermore, as time goes by, the fact that you filed for bankruptcy becomes less important than any new credit history you establish after having filed.
Free Bankruptcy Consultation
Do you want to know whether you qualify for debt relief under the Bankruptcy Act? Would you like to know the costs and procedures of an Oklahoma bankruptcy? Call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer or (888) Debt-Line for an Oklahoma bankruptcy attorney handling bankruptcies statewide. Our attorneys have years of experience in Oklahoma bankruptcy law and in applying Oklahoma bankruptcy exemptions, so that Debt Line Law Office clients can keep their exempt property and still discharge unsecured debts through a Chapter 7 bankruptcy in Oklahoma. With a ten (10) minute, free phone consultation with one of Debt Line's Tulsa bankruptcy lawyers, you can know what you qualify for and the costs and procedures involved.
Is It Possible To Discharge Student Loans Through Bankruptcy?
There are few common questions individuals and families ask regarding the discharge of student loans through bankruptcy:
Can I file bankruptcy on my student loans?
Are private student loans dischargeable?
Are federal student loans dischargeable?
The answer to each of these questions is yes, but only under certain conditions. Read on to learn the conditions needed for you to be able to discharge your student loans through bankruptcy.
Dischargeable Student Loans
While it is true that student loans are not automatically dischargeable through bankruptcy, exceptions exist that can allow the discharge of private and federal student loans through bankruptcy. Federal bankruptcy law has a very specific definition of what a student loan is. If your loan does not meet this specific definition exactly, it may be eligible for discharge through bankruptcy. The Internal Revenue Code Section 221(d)(1), defines a qualified education loan as "... any indebtedness incurred by the taxpayer solely to pay qualified educational expenses." So if your student loan exceeds the amount that your school has determined it costs to attendance, and you used the rest for other things, you can argue that the loan was not a student loan by definition and thus dischargeable. The same section of the I.R.C. goes on to state that in order to be considered a qualified education loan, the loan must have been taken out to pay for educational expenses incurred while the recipient was an eligible student. So, if the loan was used to pay for expenses incurred in any period when you were not an eligible student, you can argue that it was not a student loan. Consult an experienced bankruptcy lawyer to discuss options for discharging your student loans through bankruptcy.
The Undue Hardship Test
Even if your loan meets the definition of a student loan, and thus is not dischargeable by the aforementioned means, it may still qualify for discharge if you meet the Undue Hardship Test. To put it simply, this test says that if repaying your student loan will cause you or your family undue hardship, it may be discharged under these three conditions:
If forced to repay your student loans, you and your family cannot maintain a minimal standard of living.
There are indications that your state of affairs will likely persist for a significant portion of the repayment period.
You have made a good faith effort to repay your student loans.
If these three conditions can be met, you may be able to discharge both your private and federal student loans. It is the discretion of the court to determine that these conditions have been met and to grant a discharge of the loans. A consultation with a skilled bankruptcy lawyer can help you with the uncertain process of pursuing a discharge of your student loans through bankruptcy.
Documents Needed For The Discharge of Your Student Loans
Although difficult, discharging your students loans through bankruptcy is not impossible if you can present your case for discharge effectively. To do so, you will need to gather at least the following documents:
A letter from the school or schools stating your cost of attendance.
Approval/denial letters.
Proof that the loan was disbursed.
Recent student loan statements.
Once you have gathered these documents, you should take them to an experienced bankruptcy lawyer who can evaluate whether or not you will be eligible for a discharge of your private and/or federal student loans through bankruptcy.
Free Consultation: Oklahoma Bankruptcy Lawyer
Do you want to know whether you qualify for a discharge of your student loans under the Bankruptcy Act? Would you like to know the costs and procedures of an Oklahoma bankruptcy? Call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer or (888) Debt-Line for an Oklahoma bankruptcy attorney handling bankruptcies statewide. Our bankruptcy attorneys have years of experience in Oklahoma bankruptcy law and in applying Oklahoma bankruptcy exemptions, so that Debt Line Law Office clients can keep their exempt property and still discharge unsecured debts through a Chapter 7 bankruptcy in Oklahoma. With a ten (10) minute, free phone consultation with one of Debt Line's Tulsa bankruptcy lawyers, you can know what you qualify for and the costs and procedures involved.
Seven Chapter 7 Bankruptcy Mistakes to Avoid
When filing bankruptcy, certain mistakes may jeopardize your ability to eliminate all or most of your debt. In some cases, these mistakes may even deprive you of the chance to receive any discharge at all. An experienced bankruptcy attorney can help protect your interests throughout the bankruptcy process and help you avoid these seven common Chapter 7 bankruptcy mistakes:
1. Listing all of your creditors. When you prepare your bankruptcy petition, you are required to list your creditors. If you forget to list a creditor in your bankruptcy petition, this creditor will not be included in your discharge and will be free to use whatever collection measures are available to collect the debt from you after your bankruptcy is concluded.
2. Making preferential debt payments prior to filing bankruptcy. It's usual for debtors to prefer to pay off some creditors before others. For example, you may prefer to make payments on certain unsecured debts before paying on other secured debt. However, secured debts have priority over unsecured debt, and any preferential payments made within 12 months prior to filing bankruptcy can be ordered returned to your bankruptcy trustee. Your trustee will then distribute those funds appropriately amongst your creditors.
3. Transferring assets prior to filing bankruptcy. Like with preferential payments, any transfer of assets the trustee believes you made too close to filing bankruptcy, or transfers made in an attempt to hide assets from creditors, may be ordered returned to your bankruptcy estate for distribution to your creditors. It is possible to transfer assets for fair market value, but it must be done with care so as not to raise the suspicion of the court. It is wise to consult with an experienced bankruptcy attorney before making any such transference.
4. Modifying your mortgage prior to the approval or denial of your bankruptcy petition. If you apply to modify your mortgage when you are planning to file bankruptcy, your application to modify may be denied. This is true even though the bank knows that you will have more money available to make your mortgage payments after bankruptcy. If you need a modification, discuss this decision with a skilled bankruptcy attorney before proceeding.
5. Filing bankruptcy with a whole-life insurance policy for which the beneficiary is someone other than your spouse or children. Whole-life policies with large cash values and for whom the beneficiary is someone other than your spouse or children will not be exempt from liquidation during bankruptcy, unless it fits into your wallet exemption. If this situation applies to you, be sure to alert your bankruptcy attorney prior to filing bankruptcy.
6. Losing your tax refund. If you filed your tax return late in the prior year, or early in the year in which you file bankruptcy, you may lose any unspent tax refund in bankruptcy. If you are expecting a large tax return (more than $1000 for an individual or $2000 for a couple), it would be wise to consult a skilled bankruptcy attorney about whether it would be better to delay your bankruptcy until after you have received and spent your tax return.
7. Waiting too long to file bankruptcy. Overall, the biggest mistake debtors make is waiting too long to file bankruptcy. There is no need to wait until creditors have received judgments against you and your wages are being garnished, your automobile is being repossessed and your home is foreclosed upon. This situation will only exacerbate your financial woes before, during and after bankruptcy.
As soon as you file bankruptcy, an automatic stay of all creditor activity will immediately go into effect. This stay will require all creditors to cease wage garnishments and any other efforts to collect on your debts. It will also give you the opportunity to “right your ship” without harassment from creditors and enable you to avoid further financial ruin.
Free Consultation with Bankruptcy Lawyer
To know if you qualify for debt relief under Chapter 7 Bankruptcy call (918) 878-0010 for a free consultation with a Tulsa bankruptcy lawyer or (888) Debt-Line for an Oklahoma bankruptcy attorney.
Speak with an attorney who has years of experience in Oklahoma bankruptcy law and applying Oklahoma bankruptcy exemptions who can help you keep your exempt property and still receive a discharge of your unsecured debts through a Chapter 7 bankruptcy in Oklahoma.
New Bankruptcy Law Could Affect Students in Oklahoma
Like most Americans, Oklahomans often equate the pursuit of higher education to the pursuit of a better life for themselves and their families. But recently, the cost of higher education, which rose 15% between the years 2008 and 2010, has become a huge problem for many and the words “higher education” have become synonymous with crippling student loans and large amounts debt. Because of this, the United States Senate proposed a new bankruptcy reform aimed at addressing this issue. Here is what it could mean for students in Oklahoma.
The Situation with Student Debt and Bankruptcy
Young people who have graduated from college are being forced to make life decisions which are based not on the dreams and desires they once hoped to realize, but on their immediate ability make their student loan payments. This often means forgoing further education, delaying marriage and family and taking jobs that pay more money but are completely unrelated to their field of study.
The situation is all the more worse for families who have taken on debt during this latest period of economic hardship, in order to provide their children with educational opportunities. For the first time, the amount of consumer debt for educational purposes ($1 Trillion) has surpassed credit card debt and many families are paying off student loan debt the size of a second mortgage.
Unlike other forms of unsecured debt, student loans cannot be discharged under bankruptcy. This has been the case for both federal and private student loans, since the 2005 bankruptcy reforms exempted private student loans from being discharge. The result is $300 Billion dollars of student loan that are now considered “sub-prime” and unlikely ever to be repaid. This presents a huge threat to an economy still struggling to get back on its feet after years of recession.
The Solution?
To address this issue, the United States Senate is mulling over a new law that would allow the discharge of private student loans in the same manner that other unsecured debts, such as credit card and medical bills are discharged.
Federal student loans have been non-dischargeable since 1978 as a way of protecting taxpayers' money. Federal student loans make up more than 80% of all student loans and come with more favorable lending terms than private loans. However, there is a limit to the amount of federal student loans a student can undertake. This means that to bridge the gap between the cost of education and the money available from federal loans, student must look to private loans, which typically carry less favorable repayment terms and higher interest rates. The hope is that by making private student loans dischargeable again, private lenders will be influenced to offer better rates and more flexible repayment terms.
What this will mean for students and families in Oklahoma, who like the 12 million other Americans who take out student loans each year, is better loan options in the future. Likewise, for the 37 million across the nation who are repaying student loans debt, 14% of which are past due, the change will offer a chance at relief for those in financial distress and a fresh financial start for those who need it the most.
Free Consultation: Oklahoma Bankruptcy Attorneys
To find out more about how to successfully file bankruptcy in Oklahoma, contact a Tulsa bankruptcy attorney. For a free confidential consultation about your rights in bankruptcy court and the potential benefits of filing bankruptcy, contact the Debt Line Law Office at (918) 878-0010. If you prefer e-mail, send us your question using the form at the top right of this page and we'll answer your question as soon as possible.
4901 Richmond Square Suite 150
Oklahoma City, OK
73118
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