St. Louis Bankruptcy Attorneys

Individuals who are experiencing financial difficulties will hear about a variety of different options that they can decide to do to assist them with getting back on track financially. After weighing options, many people decide that bankruptcy sounds like a good option, but they do not know what steps they need to take to do so.

Step 1. Find an experienced attorney.

While filing for bankruptcy is something that an individual can attempt to do on his or her own, it is always a good idea to contact an attorney to assist with the process. Bankruptcy law is very complex and confusing, and sometimes one small mistake can cause a debtor’s case to be dismissed. Experienced bankruptcy attorneys can ensure that a debtor’s case will be handled appropriately and that all of the required paperwork will be submitted accurately. Additionally, an attorney will be able to not only explain the bankruptcy process, but will be able to advise you on what your best options for filing would be. While there are fees that you will incur by hiring an attorney, it is worth it in the long run to pay a bit extra for help with your case to ensure that it will be handled correctly.

Step 2. Begin Preparing Paperwork

After you have met with your attorney, and have discussed what your best options are, you need to begin preparing paperwork. Your attorney will give you a list of documents that he or she will need from you, including copies of your most recently filed federal and state tax returns, your most recent paystubs (if employed), and copies of your social security card and picture I.D. Your attorney will also need to know about things including what types of property you have (houses, cars, furniture, bank accounts, etc), and information pertaining to your creditors (names, addresses, amounts owed, dates incurred, etc). It is imperative that debtors list all property that they own; if the trustee finds out that the debtor has valuable property that was not disclosed at the time of filing, he or she will view this as fraud, and you will face very serious consequences. Most attorneys, including St. Louis Bankruptcy attorneys, will have debtors fill out a questionnaire which will assist the debtor with filling out and listing all of the information that is needed for a bankruptcy petition. It is always better to list property and/or assets that you have, even if you are not sure if they hold any value. Once this information is in to the attorney, he or she can begin preparing your bankruptcy petition.

Step 3. Review your Petition

Once your attorney has prepared your bankruptcy petition, he or she will have you come into their office to review your petition. Reviewing your petition is extremely important, because this is the your last chance to make sure that everything, including property and creditors, is listed. Even though you had an attorney assist you with preparing your petition, it is your responsibility to make sure that everything is accurate and complete. The attorney prepares your petition based on information that is given to him or her. If you did not disclose something to the attorney, it will not be listed.

Once you have reviewed your petition and made sure that everything is complete and accurate, your attorney can file your bankruptcy petition! The process and steps that are necessary to take post-filing will depend on what chapter of bankruptcy you file. If you have any questions, contact a St. Louis Bankruptcy attorney today!

After going through a divorce, many people assume they will not have to worry about the financial situation of their ex-spouse.  Often, this is the case; however, there are certain instances when the financial situation of an ex-spouse can negatively effect a person.

This issue often arises when an person’s ex-spouse files for bankruptcy.  A common misconception that individuals have is that anything stated in the divorce decree regarding joint debt is binding.  This, unfortunately, is not true.  If your ex-spouse agreed to assume the debt that was in both of your names in the divorce decree, but then decides to file for a Chapter 7 bankruptcy, you will then be responsible for the debt.  Creditors can go after both parties for joint debts, so if your ex is protected by a bankruptcy filing, creditors can and will go after you for the debts, despite what your divorce decree has listed.  Simply not paying the debts based on the divorce decree is not an option; creditors can also pursue civil judgments against the non-filing spouse and potentially garnish wages to satisfy the judgment and the debt.  This can apply to a variety of debts including anything from a small credit card to a home mortgage deficiency.

People also come across issues regarding credit scores.  Typically speaking, if your ex-spouse files for bankruptcy, your credit score will not be affected.  However, if you and your ex-spouse still share accounts, this may not be the case.   Similar to how creditors can go after you for joint debt, a bankruptcy filing by your ex-spouse can show up on your credit report if you continue to share accounts.  It is imperative that you separate accounts and debts so that you will not be negatively impacted by your ex-spouse filing for bankruptcy.

What, then, are your options if your ex-spouse files for bankruptcy and you have joint debt?  This is a tricky subject, because as previously stated, your creditors can begin attempting to collect the debts from you.  You could attempt to sue your ex-spouse in civil court for breaching your divorce agreement; however, if your ex-spouse is filing for bankruptcy, chances are that he or she will not have any extra money or assets that you would be able to collect in a settlement.  Your next option would be to simply assume the debt and begin paying it off.  However, if it is a large amount of debt and you are unable to pay it, you may consider also filing for bankruptcy.  While this option may not have been something originally considered, filing would wipe out any unsecured debt, like credit card bills, that creditors would be attempting to collect from you.  Like your ex-spouse, you would no longer be responsible for paying off those debts.

If you have questions about how you will be effected by an ex-spouse filing for bankruptcy, contact a St. Louis Bankruptcy attorney today!

Many people often wonder if it is a requirement to have filed taxes to be able to file for bankruptcy.  The answer to that question depends on a couple of different things, including whether or not you are required to file taxes by law, and what type of bankruptcy you are filing.  There are various reasons why people are not required to file income, including not making enough employment income throughout the year or even being unemployed for an extended amount of time.  If you are not required by law to file taxes, then it will not be an issue that would effect you filing for bankruptcy.  If, however, you are required to file taxes due to your income level and you have failed to do so, it could become an issue depending on what chapter of bankruptcy you are going to be filing.

If you are planning on filing a Chapter 7 bankruptcy, the bankruptcy trustee requires copies of your most recently filed tax returns.   This means that if you are filing for bankruptcy in 2012, the trustee will want copies of your 2011 Federal and State income tax returns.  If you received an extension to file from the IRS, or did not file in the most recent year at the time of filing your bankruptcy case, you will need to provide copies of your tax returns from the most recent year you filed taxes.  Depending on when you file for bankruptcy and how close that is to when you would file taxes for the following year (in this case, 2012 taxes), the trustee may decide to keep your case open until he or she receives a copy of those tax returns. In this case, you would be required to file taxes.  From those returns, the trustee determines if any portion of the refund is owed to the bankruptcy estate.  Failure to provide the tax returns can result in you losing your discharge, so it is important to comply with requests if the trustee makes them.

If you are planning on filing a Chapter 13 bankruptcy, the bankruptcy trustee will require a copy of your most recently filed tax returns, just as they would for a Chapter 7 bankruptcy.  However, Chapter 13 bankruptcies differ from Chapter 7 bankruptcies in that there is a requirement for debtors to have filed taxes for the past four years leading up to the  year of filing.  This, of course, only applies to individuals who are required to file taxes.  If you do not file your taxes for those years, the trustee and the Missouri Department of Revenue can mile motions and/or objections in your case until you comply with the requirements.  If you continue to not comply, your case can be dismissed.

When considering filing for bankruptcy, debtors will often hear the terms “secured debts” and “unsecured debts”, however, many people are not sure what these terms mean.  Secured and unsecured debts are very different, especially when it comes to filing for bankruptcy.

A secured debt is a type of debt where the debtor uses an asset as collateral for the loan they are taking out on certain property, or the money they are receiving from a creditor.  If the debtor does not make a payment on the loan, the loan provider can take back the property that was placed as collateral.  The creditor would then attempt to sell that property to recover any losses they may have incurred by providing a debtor the loan.  Examples of common secured debts include car loans and mortgages.  When you take out a car loan, the loan is secured by your car, meaning if you do not pay the monthly amounts owed, the loan company will repossess, or take back, the car.  The same thing applies to mortgages: your mortgage is secured by your house; if you do not make your mortgage payments, the provider of your mortgage will foreclose on your house.

An unsecured debt is a type of debt that is not “secured” by any property that you may own.  Common examples of unsecured debts are credit cards, payday loans and medical bills.  Unlike secured debts, if you do not make a payment on an unsecured debt, like your credit card, there is not any property that can be taken as collateral. However, because there is no security for creditors who provide unsecured loans to take collateral to recover any losses, unsecured creditors have the ability to pursue judgments against debtors.  Once a judgment is given in favor of the creditor, they can begin garnishing wages, or even place liens on property if you own a home.

The biggest difference between secured and unsecured creditors in regard to bankruptcy, then, is which type of debt is discharged, or wiped out.  Generally speaking, any unsecured debts that a debtor has will be discharged through bankruptcy, apart from student loans.  However, if a debtor has secured debt, it may not be discharged through bankruptcy.  If a debtor has property such as a car or house, he or she must continue to make payments on the loan if they intend on keeping the property.  If the debtor does not want to keep the property, they can surrender the property through the bankruptcy, allowing them to no longer be responsible for the loan.

If you have questions about the type of debt you have, please contact a St. Louis Bankruptcy attorney today!

When considering bankruptcy, many people wonder what the best option for them will be: a chapter 7 bankruptcy or a chapter 13 bankruptcy.  The answer to this question largely depends on an individual’s specific circumstances.  When determining if a Chapter 7 or a Chapter 13 bankruptcy is right for you, it is important to meet with an attorney; qualified bankruptcy attorneys will be able to ask you the right types of questions to assist you with determining what your best option will be.  Many things are taken into account when deciding which chapter of bankruptcy is best for you, such as your income, the types and value of property you have, and the types of debts you have.

Often times, people assume that a Chapter 7 bankruptcy will be the best option for them; people hear that it will wipe out their debts, so they are very interested in this as an option for them. However, generally speaking, a Chapter 7 bankruptcy is typically a better option for individuals who do not own much property, or own property with little to no equity in it, and who have large amounts of unsecured debts, like credit card and medical bills.  Chapter 7 bankruptcies are also better for individuals who do not have large annual income.

If you have large amounts of equity in property and make a large salary through work, a Chapter 13 might be a better option for you. Equity can simply be explained as how much your property is worth compared to how much you still owe on it.  If you have a house that is worth $150,000 if you sold it, and you only owe $100,000 on your mortgage, you have $50,000 of equity in your house.  Unless you plan to sell your house to pay back your creditors with the money you would receive, you would most likely have to do a Chapter 13 bankruptcy. This is due to rules set forth by the bankruptcy code. If you have large monthly income and high amounts of equity in property that you want to keep, you may have to do a chapter 13.

Bankruptcy law is complex and often times very confusing. If you are unsure about which type of bankruptcy would be best for you, contact a St. Louis Bankruptcy Attorney today! We can help you determine what your best options will be.

There are many widespread misconceptions that filing for bankruptcy is one of the worst decisions an individual can make regarding their financial situation.  This, in large part, is due to places like the credit card industry and payday loan companies attempting to distract people from the truth about bankruptcy. Many places such as these have very aggressive collections efforts, and not only scare, but put down many of the clients that have debts with them.  They will say just about anything to scare people out of filing for bankruptcy, including telling people that filing for bankruptcy will hurt them more than it will help them.

If you are considering filing for bankruptcy, you need to make sure that you are receiving accurate information about what your options are and what the process entails.  As stated before, much of the information on the internet or in the media is sponsored by credit card companies or predatory debt consolidation companies that are attempting to sway your opinion.  If you would like to receive the most accurate information about if bankruptcy is an option for you, it would be very wise to meet with a bankruptcy attorney. Many attorneys offer free consultations, and would be able to take a look at your situation to let you know what your options are and to explain the process.  An attorney will have no interest in filing a bankruptcy for you that is not in your best interest, so it is a good place to get the most accurate information.

While there are some negative effects that come from filing for bankruptcy, most of the time, the positive effects outweigh the negative.  For example, some negative effects include a one-time hit to your credit score, and the potential for some lenders to deny you loans that you are interested in.  It is important to keep in mind, though, that are several companies and organizations that exist solely to assist people with rebuilding their credit; many of them do this through providing loans to assist people with financing cars and/or homes.  With all of this being said, bankruptcy can help people by reducing or even eliminating debts, stopping foreclosures, repossessions, and garnishments, and by putting a stop to constant creditor harassment.

Countless people have been able to eliminate their unsecured debts through a chapter 7 bankruptcy and many others have been able to save their homes through a chapter 13 bankruptcy. If you would like to speak to an attorney to find out the most accurate information about it filing a bankruptcy is the most helpful option for you, contact a St. Louis Bankruptcy attorney today!

One of the most common questions that is asked by bankruptcy clients is “will I have to go to court?”.  Typically, the answer to this question is “no”; however, you will have to go to a “meeting of creditors” or a “341 Meeting” after your bankruptcy petition is filed. The meeting of creditors is a meeting conducted by the bankruptcy trustee, and is held in the court; which court you go to will depend on where you live.  The primary purpose of this meeting is to give the bankruptcy trustee the chance to ask you questions about your petition and have you swear, under oath, that all of the information you provided in your petition is complete and true.  Generally, the only people at this meeting will be you, your attorney, and the trustee.  While it is true that your creditors are able to come to this meeting to ask you questions, it is extremely rare that any show up. Many creditors find that coming to the meeting will be a waste of their time, especially the larger creditors like credit card companies. On the rare occasion that one of your creditors does show up, your attorney will ensure that they do not do or ask anything inappropriate.  This meeting is not a time for your creditors to grill you with questions.

When preparing for your meeting of creditors, there are certain things you should make sure to do. One of them is to make sure you are on time to your meeting. Many times, especially in larger areas, it may be hard to find parking near the court house. You will want to give yourself enough time to make it to your meeting accounting for how long it could take you to find a place to park. Additionally, if you have never been to the courthouse you need to be at before, you may want to account for how long it may take you to find where you need to go.  If you are late to your meeting of creditors, it is very likely that your meeting will be continued, or rescheduled.  If you are unable to come to your next meeting, or arrive late again, it is possible your case will be dismissed. In addition to arriving on time, you also want to make sure that you bring your social security card and picture i.d. with you, since you will need it for the meeting.

The setting of the meeting is in the court room with you and your attorney sitting across a table from the trustee.  The meeting is much less formal than a typical hearing, so you should dress neatly, but you can wear regular street clothing; suits and ties are not necessary.  Most of the time, the meetings take about ten minutes; however, you may have to wait for some time at the court house for your case to be called.

Once your case is called and the meeting begins, the trustee will ask you certain questions regarding the information you listed in your bankruptcy petition.  These questions can vary depending on your particular situation. A list of typically asked questions is listed below:

1. State your name & current address for the record

2. Please provide your picture ID and Social Security Card for review

3. Did you sign the petition, schedules, statements and related documents before you signed them?

4. Are you personally familiar with the information contained in the petition, schedules, statements and related documents? To the best of your knowledge, is the information contained in the petition, schedules, statements and related documents true and correct?

5. Are all of your assets identified on the schedules? Have you listed all of your creditors on the schedules?

6. Have you ever filed bankruptcy before?

7. What is the address of your current employer?

8. Is the copy of the tax return you provided a true copy of the most recent tax return you filed?

9. Do you have a domestic support obligation? To whom? Please provide the claimant’s address and telephone number, but do not state it on the record.

10. Have you read the bankruptcy information sheet provided by US Bankruptcy Trustee?

The trustee may ask you additional questions that are not listed above, but this will only be if he or she needs the additional information.  As an example, if you own a business, the trustee will likely ask you questions regarding the business, such as what types of assets it had and what your income was. Another example of this would be if you filed a Chapter 13 bankruptcy; the trustee may ask you about a specific proposal you listed in your chapter 13 plan.  While it may feel like the trustee is asking you a lot of questions, he or she will only ask you questions that are applicable to your case.  Additionally, he or she most likely will not ask you any questions that you would not be able to answer. The trustee is not “out to get you”; he or she just wants to make sure that your bankruptcy petition was filled out accurately, and that you do not have any unlisted assets that could be sold off to help pay some of your creditors.  Something to keep in mind is that if the trustee asks you a question, try not to stress out about how to answer it; just answer the questions as accurately as possible, and you will have nothing to worry about.

While it can be very stressful to hear about having to appear for a meeting of creditors, it is truly nothing to worry about.  Many clients leave court surprised at how quick and easy the meeting was.

Local area programs in the St. Louis area have been distributing federal assistance to low- and middle-income home buyers. If interested home buyers are earning a decent wage, have a good enough credit score to be approved for a mortgage, and have some money to put down, they could qualify to be a part of one of these programs.  There are programs such as these run in St. Louis City, Jefferson, Madison, and St. Clair Counties, parts of St. Charles County, and the cities of St. Charles, St. Peters, Wentzville, and O’Fallon. 

These programs began after the home market crashed in 2008 and 2009, when Congress was afraid that a wave of foreclosures would damage neighborhoods, leaving homes abandoned and property values lowered.   Congress began giving money to local governments to buy foreclosed homes, fix them up, and then resell them.   Once the houses are fixed up, the city still has to sell them at appraisal value; this is to avoid driving down the values of nearby homes. However, because of this, the program added a cash subsidy for buyers.  In fact, some buyers receive anywhere from $3,000- $10,000 to put toward their homes. 

The program set out to buy houses strategically in neighborhoods that have been affected by the housing market crash.  In St. Louis, the areas where these houses are tend to be in North St. Louis and in Lemay.  To increase the sale rates, the houses are in desirable subdivisions.  Additionally, the county attempted to buy houses that are on corners so that they stand out to potential home buyers.  They also attempted to buy houses that were in the worst shape, so that in theory, fixing up the house would have the biggest effect on the neighborhood.  St. Louis County now has eleven fixed up homes through this government program that are on the market, and they are in the process of buying more.  All of the newly refurbished homes have been repaired with energy efficient materials and should not need any major repairs for the next fifteen years. 

Another program is available for homes that were not foreclosed on, but were fixed up by the government.  The program offering refurbished houses is called the Neighborhood Stabilization Program.  This program has stiffer qualifications including at least a $1,000 down payment on the house, a good credit score, and the buyer’s income is taken into account.  Interested buyers cannot annually make more than $59,150 for a single person and $84,500 for a family of four. Additionally you have to live in the house for a set amount of years, usually about five years, to avoid having to repay the government subsidy. 

While some program qualifications vary from others, programs such as these are extremely beneficial to home buyers and to neighborhoods across the St. Louis area.