http://www.lickerlawfirm.com/blog/ If you need help paying your debts, we will do our best to help you move past this difficult time in your life en-us 2012 A&L Licker Law Firm, LLC, All Rights Reserved, Reproduced with Permission http://www.lickerlawfirm.com/blog/ Sat, 19 May 2012 04:48:31 GMT http://www.lickerlawfirm.com/images/logoprint.gif http://www.lickerlawfirm.com/blog/ Creditors can make certain efforts to collect debts, however, some types of conduct are illegal and the debtor may be able to recover monetary damages.  Even if your situation does not rise to the level of damages, collections efforts can be frustrating, embarrassing, and even costly for a debtor. 
Once you choose to retain an attorney you can inform your creditors that you are represented and provide your attorney's name and contact information to the creditor.  The attorney can then confirm representation and your creditor may stop contacting you.  However, it is important to know that your creditor is not legally required to stop contacting you until you actually file your bankruptcy petition with the court. 
Once your case is filed your creditors are not legally permitted to contact you or try to collect the debt from you.  If your creditors continue to contact you please inform your attorney. 
There is an exception to this general rule that creditors may not collect debts after filing.  If you currently have a bank account with an institution that is also listed as an unsecured creditor (i.e. you have a debit card and a credit card with the same bank), the creditor can take the funds out of your bank account until the debt is satisfied in full.  When filling out your debts  you should check to see if you owe any money to your bank for anything: including, but not limited to, credit cards, overdraft fees, and/or personal loans.  If you do you should inform your attorney who can provide advice accordingly.
While generally we are looking for unsecured debts, there are a handful of financial institutions that will block use of ATM or debit cards if you hold a secured debt (for example a car loan or home loan) with the institution pending a reaffirmation agreement.  You should still be able to access your funds from a bank branch, but your debit card may not work.  This is not the policy of every institution, but you may want to check with your financial institution prior to filing if the situation applies to you.  
If you have questions, or would like to schedule a free consultation, contact a St. Louis Bankruptcy Attorney today!
]]> http://www.lickerlawfirm.com/blog/collections%2Defforts%2Ecfm www.lickerlawfirm.com-81974 Fri, 18 May 2012 08:00:00 GMT Your attorney will ask you to provide a number of documents including, but not always limited to, pay stubs, tax returns, and lists of assets and debts. When you are providing information about your debts it is imperative that you provide a complete and accurate list.  It is also imperative that addresses of creditors are correct.  Your attorney cannot obtain all of this information for you because your attorney doesn't know what your debts are.  We can run a credit report for you, but you still need to review that information for accuracy and missing information. 
You will also have to provide information regarding your assets.  Your attorney will then review this information and prepare your bankruptcy petition.  Your attorney can only properly advise you about your case when all of the information is accurate and complete.  Any missing information hinders your attorney's ability to advise you and it may adversely affect your case. 
After your petition is prepared, your attorney will have you come in to review and sign the petition.  This time should be used very wisely.  It is imperative that the debtor thoroughly review the petition for any inaccuracy or missing information.  This is the last opportunity to add creditors prior to filing.  If you realize after filing that you missed a creditor there will be fees to add the creditor(s) to your bankruptcy. Undisclosed assets can cause very serious problems as the trustee may consider the failure to disclose an asset fraud. 
When you sign your petition you are signing it under penalty of perjury.  You alone, and not your attorney, is responsible for the contents of the petition.  This is also a great time to ask any questions you may have.  This is the time to make sure you understand what has been listed.  You can also ask your attorney about the process and any other questions you may have. We cannot answer an unasked question.
If you have questions, or would like to schedule a free consultation, please contact a St. Louis Bankruptcy Attorney today!
]]> http://www.lickerlawfirm.com/blog/debtor%2Dresponsibilities%2Din%2Dreviewing%2Dand%2Dfiling%2Da%2Dbankruptcy%2Dpetition%2Ecfm www.lickerlawfirm.com-81976 Fri, 18 May 2012 08:00:00 GMT Myths and Truths About Chapter 7 Bankruptcy, Part III
Myth:  If a debtor wishes to retain personal property or real property, the property can be excluded from the bankruptcy and does not need to be listed in the petition.
Truth:  All property, real and personal, a debtor owns at the time of the bankruptcy must be listed in the bankruptcy schedules, even if the debtor intends to retain the property and maintain the payments.  Many debtors believe that if they are current on their payments and are going to continue paying for the real or personal property, such as a vehicle or home, they can leave the debt off the bankruptcy petition entirely.  This is not true.  The trustee and bankruptcy court want to know the assets debtors have at the time of filing.  They want to know what property the debtors have, the value of the property, and the amount still owed on the property.  The lien holder for the property must be listed with their address so they get notice of the bankruptcy.  If the debtor wishes to retain the property and maintain the payments, the debtor will indicate that in the petition so the creditor knows they intend to retain and reaffirm.  It is important for debtors to list all their property, even if they wish to retain it, so the trustee may determine whether there is unexempt equity and proceed accordingly.
Myth:  A debtor is not required to list cash they have on hand.
Truth:  A debtor must list any cash they have on hand at the time of filing the bankruptcy.  Schedule B specifically asks about cash on hand.  If the debtor leaves that question blank, they are stating to the trustee that they do not have cash on hand.  The debtor has an obligation to list any money they have in their possession, in their house, or anywhere else, such as a safe deposit box at the bank.  This rule also applies to un-cashed checks the debtor possesses.  Many debtors may believe it is acceptable to take money out of the bank or cash a check and keep it in cash so the trustee does not know about it and potentially require the debtor to turn that money over to pay some of their unsecured creditors.  This is false.  Any property a debtor has must be listed, including cash.  If not reported, the debtor can be investigated.  It is essential for a debtor to list all property and value that property honestly and fairly. 
If you have any questions, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D7%2Dbankruptcy%2Dpart%2Diii%2Ecfm www.lickerlawfirm.com-81388 Fri, 11 May 2012 08:00:00 GMT Myths and Truths About Chapter 13 Bankruptcy, Part III
Myth:  A debtor can only file a Chapter 13 bankruptcy if they are trying to save a house from foreclosure or a car from repossession.
Truth:  There are several reasons why a person may file a Chapter 13 bankruptcy.  One reason is the debtor is over median.  There is a median income that is determined for each state depending on the household size.  If a debtor's income is more than the median income, the debtor may be required to file a Chapter 13 bankruptcy instead of Chapter 7.  The debtor would then pay back a certain amount to their unsecured creditors based on the disposable monthly income in the means test. 
A debtor may also need to file a Chapter 13 bankruptcy if they have equity in their property.  This is referred to as the liquidation analysis.  If a debtor has unexempt equity, they may want to file a Chapter 13 and pay back their unsecured creditors an amount equal to their unexempt equity.  For example, if a debtor has a vehicle worth $10,000 without a loan against it and $3,000 is exempt under the vehicle exemption and $500 under the wildcard exemption in Missouri, there is $6,500 in unexempt equity.  In a Chapter 7, the trustee would be able to take the car and sell it to pay $6,500 to unsecured creditors.  The other option through a Chapter 13 is to pay the $6,500 to unsecured creditors.  In return, the trustee will allow the debtor to retain their property and keep the equity.  If the debtor is under median, they would pay back $6,500 to unsecured creditors, and the rest would be discharged.
Another reason to file a Chapter 13 bankruptcy would be if the debtor is not eligible to file a Chapter 7 bankruptcy.  A person can only file a Chapter 7 bankruptcy every eight years, but they can file a Chapter 13 six years after filing a Chapter 7.  If they are being pursued by creditors, the Chapter 13 may be their best option if a Chapter 7 may not be completed at that time.
As you can see, there are many reasons for debtors to file a Chapter 13 bankruptcy.  If you would like more information about this, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D13%2Dbankruptcy%2Dpart%2Diii%2Ecfm www.lickerlawfirm.com-81389 Fri, 11 May 2012 08:00:00 GMT chapter 13 bankruptcy.  That simply is not the case.  However, you will need permission from the court to complete any purchase or sale. 
Should you find that you would like to sell or purchase an item, for example a house or vehicle, you should contact your attorney right away.  Your attorney will need some information from you.  This information will include the selling price, financing terms, the length of the agreement and so forth.  Basically, you should provide the proposed contract terms to your attorney. 
Your attorney will then prepare a motion to either sell or purchase, whatever is appropriate, and file the motion with the court.  That motion will have to be set for a hearing a minimum of 21 days from the day of filing.  That 21 day period allows all of your creditors and the trustee to receive notice and allows time for any objections.  If there is an objection all may not be lost.  It may be an objection that you and your attorney can cure.  If the objection holds you may not be able to buy or sell the property. 
If there is no objection within the 21 day time frame, a judge will likely grant your motion.  At that point, your attorney can submit an order to the judge.  The judge will need to sign this, and only after there is a signed order can you sell or purchase the property.
If you intend to purchase something, like a car, the motion can be written to cover any comparable vehicle up to a an established debt limit in the event that a particular car you were in interested in is no longer available after this process has been completed.  It is also important to know that must be able to demonstrate that you can actually afford the purchase. 
As you can see, this can take some time to complete so you should speak to your attorney about the process as soon as possible if you are interesting in making a purchase or selling an item while in a chapter 13 bankruptcy. 
If you have questions about this, or would like to schedule a free consultation, contact a St. Louis Bankruptcy Attorney today.
]]> http://www.lickerlawfirm.com/blog/what%2Dif%2Di%2Dwant%2Dto%2Dbuy%2Dor%2Dsell%2Dsomething%2Dwhile%2Din%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-81304 Thu, 10 May 2012 08:00:00 GMT Chapter 13 Bankruptcy.
If you are married both your income and the income of your spouse must be included in the means test.  This is true even if you are not filing with your spouse because his/her income contributes to the household income. If you are separated and living in separate households then you do not need to include your spouse's income in the means test.  While you do have to account for your spouse's income, you also account for his/her expenses.
Median income is the average family income.  You family size is considered. For a one person household median is $39,563. For a two person household median is $51,562. For a three person household median is $58,473. For a four person household median is $70,363. You can add $6,900 for each person over four in your household.
So, who can you count?  You count yourself, your spouse if applicable, and your minor children that live with you.  If you have a child that is over 18 and is financially dependent upon you, especially because he/she is in college or is disabled in some way, you may count them.  If you have a parent or relative living with you that is financially dependent you may count that person.  As a general rule, if you can claim an individual as a dependent on your taxes you can probably count them.  The big exception to this is custody arrangements that relate to taxes.  If you can claim your child on taxes, but he/she does not live with you, you cannot claim him/her as part of your household for purposes of evaluating your qualification to file a Chapter 7.
If it does appear that your gross income is over median you should still speak with an attorney.  It is very possible that some of your qualified expenses will actually put you under median, meaning that you can file for a Chapter 7 Bankruptcy. 
If you have any questions or would like to schedule an appointment for a free consultation, contact a St. Louis Bankruptcy Attorney today.
]]> http://www.lickerlawfirm.com/blog/what%2Dis%2Dmedian%2Dincome%2Ecfm www.lickerlawfirm.com-81212 Wed, 09 May 2012 08:00:00 GMT Myth:  Debtors who file a Chapter 13 bankruptcy will lose their entire tax refund every year they are in the Chapter 13 without exception.
Truth:  Sometimes debtors in a Chapter 13 bankruptcy are required to turn over their tax refunds.  The debtor is obligated to turn over tax refunds; however, the debtor may retain the lesser amount of either $600 or two months plan payments.  The debtor is required to turn the excess over to the trustee and should not spend the rest of the refund.  If the debtor would like to retain more than that amount, they can contact their attorney and have their attorney file a Motion to Retain Tax Refunds.  The motion states the legitimate expenses debtor would like to spend the money on, and receipts or bids for the services or products would be attached so the trustee can confirm the amounts the debtor wishes to retain.  The trustee has 21 days to object.  If no objection is filed, the debtor can retain the portion of their refund accounted for by the motion.  If the trustee objects, the debtor would be required to surrender their tax refund to the trustee. 
Myth:  When the debtor makes his or her Chapter 13 plan payment every month, the trustee takes most of the money for himself.
Truth:  The trustee gets paid a small percentage of the total plan base as his fee.  The percentage rate fluctuates but is usually about five percent.  The trustee disperses the rest of the monthly plan payments to various creditors.  The trustee pays on secured debts, such as vehicle loans, arrears on houses, and monthly mortgage payments if the debtor wishes.  They also pay taxes, unsecured debts, sewer bills, and other debts as well.  If the debtor is required to surrender tax refunds or employee bonuses, the trustee does not keep that money for himself.  He generally uses those proceeds to pay unsecured creditors a portion of their debt if they have filed a proof of claim.  The trustee may pay certain creditors before other creditors based on their priority level.
If you have questions, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D13%2Dbankruptcy%2Dpart%2Dii%2Ecfm www.lickerlawfirm.com-80909 Fri, 04 May 2012 08:00:00 GMT Myth:  Debtors can include some creditors in a bankruptcy and leave out other creditors so that some creditors can be discharged while debtors continue to pay other creditors.
Truth:  Debtors may not include some creditors in a bankruptcy but not others.  Any creditor who debtor owes money at the time of the filing of the bankruptcy must be listed in the bankruptcy petition.  The debtor may not pick the creditors he/she wishes to continue paying while other creditors will be discharged and will not receive any money.  The trustee will ask the debtor under oath at the 341 Creditor meeting whether all creditors have been listed.  If not all creditors who the debtor owes money are listed, the debtor will have to pay the additional court fees in order to amend the creditor matrix to make sure all creditors they are aware of are listed.  The trustee does not want some creditors to get preferential treatment.  If the balance on a particular account is $0, the debtor does not need to list that creditor on the petition.
A debtor can continue to pay on secured loans, such as a house or a car.  The trustee allows those debts to be paid back because they are secured.  Those debts do still need to be listed in the bankruptcy so the trustee knows what assets a debtor has at the time of filing.
Myth:  If a debtor has equity in a home, vehicle, or any other un-exempt property, they can transfer the property into someone else's name so the trustee will not attempt to seize the equity.
Truth:  A debtor cannot transfer property to avoid the trustee or their creditors.  The debtor has an obligation to list in the Statement of Financial Affairs any transfers of property or any sales in the two years prior to the filing of the bankruptcy.  The trustee can void the sale or transfer of the property if within the two years prior to the filing.  If the sale or transfer is voided, the trustee can regain possession of the property, sell it, and use the money to pay the debtor's creditors.  If the transfer is not listed in the bankruptcy petition, the debtor would be in violation of the bankruptcy rules.
If you have any questions, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D7%2Dbankruptcy%2Dpart%2Dii%2Ecfm www.lickerlawfirm.com-80910 Fri, 04 May 2012 08:00:00 GMT This may all sound frightening; however, there are certain minimum amounts of debt.  A creditor cannot just force anyone into a bankruptcy.  Minimums depend on whether a debtor has a business or it is simply personal.   Importantly, and involuntary bankruptcy cannot be filed as a Chapter 13.  Depending on your situation, you may prefer, or need to file a Chapter 13.  The long and short is, if you get notice of an involuntary bankruptcy proceeding, you should contact an attorney as soon as possible.  It may be in your best interest to file for bankruptcy, and that is something an attorney can help you determine.  Whether you want to defend against an involuntary case, or consider a voluntary bankruptcy, it is always a good idea to speak with an experienced attorney.
There is another circumstance where debtor(s) may find themselves in an involuntary bankruptcy.  Any time an individual files for bankruptcy the bankruptcy trustee has the ability to look into financial records, assets, and property.  If the bankruptcy property finds an asset (that could be a house, cars, property, money, etc.) particularly one that was not properly disclosed or valued on the petition, you may be held in an involuntary bankruptcy.  As a general rule, a debtor has the right to dismiss their case at any time, however, as stated, if the bankruptcy trustee determines there are assets that could be liquidated to pay some of your debts you may not be able to dismiss your case.
If you have any questions, or would like to set up a free consultation, contact a St. Louis Bankruptcy Attorney today.
]]> http://www.lickerlawfirm.com/blog/involuntary%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-80852 Thu, 03 May 2012 08:00:00 GMT Though pursuing an legal option to eliminate debt, many people are still concerned with  who might find out.  A bankruptcy filing is a matter of public record, so the short answer, is that anyone that goes digging will be able to find out.  Perhaps the most important question to ask is not who could find out, but who would care.  Chances are you neighbors are not sifting through piles of public records daily just to see what you are up to. 
All of your creditors that are listed will get notice of you bankruptcy proceeding.  The court, the local trustee, and the United States Trustee's office will all get notice.  Not to worry, all of these people get notice of every bankruptcy filing. 
Some prospective employers may ask if you have ever filed for bankruptcy.  We recommend that you are honest, and for many employers, this may not bar you from employment, they may just want further explanation.  Conversely, if you lie on your application and you employer finds out, even years after you are employed, they may be able to fire you for lying on your application.  It would be much better to disclose the information, if asked, in the very beginning then to have to explain both the bankruptcy and deceit later on.
Some mortgage lenders and rental properties will ask if you have filed for bankruptcy.  There is not an automatic bar on purchasing a house after you file for bankruptcy, but it is something your lender may want to know.  Chances are, they will find out anyways when they evaluate your credit worthiness so it would be better to tell them up front so you can be properly advised from the beginning.  There may be some apartment complexes that will not rent to you if you have filed for bankruptcy.  However, there are many that will rent to you, even immediately after filing for bankruptcy.  This will be up to each individual company and may vary by location.  The best advice is to be honest if asked.
If you have questions, or would like to set up a free consultation, contact a St. Louis Bankruptcy Attorney today.
]]> http://www.lickerlawfirm.com/blog/who%2Dwill%2Dknow%2Dthat%2Di%2Dam%2Dfiling%2Dfor%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-80386 Fri, 27 Apr 2012 08:00:00 GMT What happens if no proof of claim is filed by my creditor(s)?
The answer to this greatly depends on two things

1. Are you in a Chapter 7 or a Chapter 13?; and
2. Is the creditor an unsecured creditor, a priority creditor or a secured creditor?

In a Chapter 7, the filing of a proof of claim by a creditor is not a concern for the debtor. In fact, in most Chapter 7’s the creditors are not even asked to file a proof of claim. The only time they are told to file a proof of claim is when it is an asset case. This means that the trustee has some money and/or property for liquidation that will be spread out pro rate to creditors that file a proof of claim.
In a Chapter 13 case, unsecured creditors importance of a proof of claim is similar to that described above for a Chapter 7. If there is an distribution to unsecured creditors, they would not receive anything unless a proof of claim is filed. However, this is not something that the Debtor needs to be concerned with.
Of greater importance is the filing of a proof of claim for secured and priority creditors in a Chapter 13. A Chapter 13 plan includes payment to secured and priority creditors. Your plan payment is partially based on these debts.
For example, your car loan is included in the plan. If you make your plan payment every month to the trustee as you are required for the entire length of your plan then your car would definitely be paid off right? Wrong in certain circumstances.
If your car creditor never files a proof of claim, then the trustee never sends them money. What this means for you is that at the end of your Chapter 13 plan you still owe debt on your car and the trustee likely sent that money to other likely unsecured creditors who DID file a proof of claim.
 
]]> http://www.lickerlawfirm.com/blog/what%2Dhappens%2Dif%2Dno%2Dproof%2Dof%2Dclaim%2Dis%2Dfiled%2Dby%2Dmy%2Dcreditors%2Ecfm www.lickerlawfirm.com-80262 Thu, 26 Apr 2012 08:00:00 GMT You decide filing bankruptcy is the right decision. You seek out an attorney and decide that the attorneys at Licker Law Firm can best serve your needs….
You come in and we go over your options and give you some “homework” on information to provide in order to prepare your petition. We ask for paycheck stubs, taxes, information about your expenses, personal property and your creditors. Then you think…. “Well wait a minute, if I am doing all of this work, why do I need an attorney?”

1. The bankruptcy petition that has to be filed is the same whether you are represented by an attorney or not. You are held to the same standard. There are many forms, schedules and statements that must be filed. If they are not filed, the court can dismiss your case. If that happens you are now out court costs, still have the debt, and would have to pay court costs again to refile.
2. You are signing all of your documents under penalty of perjury that they are true and correct.
3. The exemptions available to protect your property change based on certain information
4. Trustee can liquidate property that is not protected under the bankruptcy

In short, it is not worth the risk of having all of these issues. You want a fresh start so hire an attorney and make sure it is done right the first time.
Keep in mind the attorney has no way of knowing personally what debt or property you  have accumulated. While we can run a credit report to get you started, there is still some work that goes into filing for bankruptcy.
All in all, the amount of work that is required certainly worth getting rid of your debt!
 
]]> http://www.lickerlawfirm.com/blog/why%2Ddo%2Di%2Dneed%2Dan%2Dattorney%2Ecfm www.lickerlawfirm.com-80264 Thu, 26 Apr 2012 08:00:00 GMT Do I have to file taxes in order to file for bankruptcy?
That answer depends on a few things. First, are you required to file taxes? If you income is at an amount where you are not required to file taxes, then not filing taxes is not an issue. If however, your income requires that you file taxes and you just fail to do so then we have to look at what Chapter of bankruptcy you are looking to file.
If you are filing a Chapter 7 then trustee wants your most recently filed taxes. If for example you file bankruptcy in December, 2011 the trustee will want a copy of your 2010 taxes upon filing (or the last you filed). Depending on your expected 2011 refund, they may want a copy of those once they are filed to determine whether the refund or a portion of the refund is owed to the bankruptcy estate. If they do request these taxes, then yes they can require you to file your taxes. Failure to cooperate with the trustee can result in denial or revocation of your discharge so if the trustee asks for documentation, provide it!
If you are filing a Chapter 13, the trustee wants a copy of your most recently filed taxes. However, there is also a requirement in Chapter 13’s that you have to have filed the past 4 years of taxes (if income required you to do so). Both Missouri Department of Revenue and Chapter 13 trustee can file motions or objections in your bankruptcy case until these are completed. If you still fail to file the required taxes, it can lead to dismissal of your case.
]]> http://www.lickerlawfirm.com/blog/do%2Di%2Dhave%2Dto%2Dfile%2Dtaxes%2Dto%2Dfile%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-80265 Thu, 26 Apr 2012 08:00:00 GMT What if I do not have paystubs and/or copies of my taxes?
The trustee of your bankruptcy needs several things:

1. Past 60 days of paystubs
2. Most recently filed state and federal taxes
3. Bank statement from the date of filing

What happens if you do not have paystubs either because you do not work or you do work but are not provided paystubs (for example someone who is self-employed or on a 1099). And what happens if you filed taxes but do not have a copy or if you did not file taxes because you are not required to?
An affidavit can be provided to the trustee in place of any of the above documentation. If you are working and just do not have paystubs then the affidavit will ask you to state the amount of income you have the past 60 days. If you have had no income the past 60 days the affidavit will simply ask the last date that you were employed. If you did not file taxes last year it will ask the reason that you were not required to file taxes. If you filed taxes and do not have a copy it will ask why a copy cannot be provided.
This affidavit however should not be used to prevent effort in obtaining these documents. If you lost your paystubs, you can contact payroll to get copies. If you lost your taxes, you can call IRS and Missouri Department of Revenue and ask that copies be sent to you. The trustee prefers to see these documents. But it in the case that they are not available, the affidavit can fulfill this requirement.
]]> http://www.lickerlawfirm.com/blog/what%2Dif%2Di%2Ddo%2Dnot%2Dhave%2Dpaystubs%2Dand%2Dor%2Dtax%2Dreturns%2Ecfm www.lickerlawfirm.com-80266 Thu, 26 Apr 2012 08:00:00 GMT Many people who are considering filing bankruptcy have misconceptions about Chapter 7 bankruptcy.  Below please find a common myth about Chapter 7 and the truth associated with that myth.
1.  Myth:  Debtors in a Chapter 7 bankruptcy must turn over their tax refunds for many years or forever after the filing of the bankruptcy.
Truth:  A Chapter 7 debtor usually receives their final discharge three to four months after the date of filing.  If a Debtor has received his/her tax refund before filing and has spent the refund on legitimate expenses, they will not be required to surrender their tax refund.  The Trustee may inquire about the purchases made with the refund so a debtor should be able to explain where the money was spent.  If the Debtor either has a tax refund pending or has received the refund but has not yet spent it, the debtor may have to turn over all or a portion of the tax refund if it cannot be exempted under the wildcard or head of household exemptions.  A debtor may not wait to file their taxes until after the filing of the bankruptcy in order to be able to retain the refund because the Trustee will wait until the taxes are filed and the refund has been received to collect the amount that cannot be exempted and close out the case.  That can prolong the bankruptcy discharge.  The Trustee will take no interest in any future tax returns in the years after the filing of the bankruptcy.  When a debtor files a bankruptcy beginning in approximately August or September through December, the Trustee can take an interest in a portion of the tax return the debtor will receive the following year because they have worked the majority of the year at that point.  The Trustee will advise if they wish to do so.  The Trustee will only take an interest in that one year and will not claim an interest in any future tax refunds.  In short, the Trustee will take an interest in one tax year at most but will not expect debtors to turn over their tax refunds for years or forever after the filing.  The exception would be if the debtor files his/her taxes for multiple years around the time of the filing.  Any refund received under those circumstances would be subject to the bankruptcy exemptions and may need to be turned over if not able to be exempted under the wildcard or head of household exemptions.
If you would like more information about this, please contact a St. Louis or St. Charles bankruptcy attorney.

 
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D7%2Dbankruptcy%2Dpart%2Di%2Ecfm www.lickerlawfirm.com-80293 Thu, 26 Apr 2012 08:00:00 GMT Myths and Truths About Chapter 13 Bankruptcy:  Part I
Many people who are considering filing bankruptcy have misconceptions about bankruptcy.  They may have heard things from friends and family members that may make them apprehensive about filing a Chapter 13 bankruptcy.  Below please find some common myths about Chapter 13 and the truths associated with those myths.
1.  Myth:  When a debtor is in a Chapter 13 bankruptcy, the Trustee will check monthly bank statements and check every expenditure a debtor makes for the life of the Chapter 13 Plan.
Truth:  At the time of the filing of the bankruptcy, the Debtor is required to disclose on Schedule B of the bankruptcy petition how much money they have in the bank.  However, in a Chapter 13, the Trustee will not require a copy of the bank statement.  The Trustee will not check a debtor's monthly bank statements for the entire 36 to 60 months the debtor is in the plan.  A debtor is required to list their income and expenses when the bankruptcy is filed, and the Trustee assumes that is the average that is being earned and spent on a monthly basis unless the Debtor amends those schedules. 
2.  Myth:  When a debtor is in a Chapter 13 bankruptcy and they need a different vehicle, they will not be able to purchase another vehicle while in the Chapter 13 Plan.
Truth:  Chapter 13 plans range in length from 36 to 60 months.  In that time period, a person's car may need to be replaced because of a car accident, repairs to the vehicle are more expensive than the value of the vehicle, or a vehicle becomes too old and cannot be repaired.  If that happens and the debtor wants to purchase a vehicle without a loan, they can do so without Trustee permission.  If the debtor wishes to retain a vehicle loan on a different vehicle, they must request permission from the Trustee to do so.  This is called a "Motion to Incur Debt".  The debtor should contact their attorney and have them file this motion.  The motion must list the year, make, model, and miles of the car they wish to purchase or a similar vehicle in that condition.  It should also describe the down payment, the interest rate, the monthly payment, and the total amount of the loan.  The Trustee has 21 days to object once the motion is filed.  If they do not object, the vehicle may be purchased.  If they object, the motion can be amended and resubmitted.  The Trustee understands a debtor needs a vehicle and will work with debtors and their attorney so they have transportation.
If you have any questions, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/myths%2Dand%2Dtruths%2Dabout%2Dchapter%2D13%2Dbankruptcy%2Dpart%2Di%2Ecfm www.lickerlawfirm.com-80295 Thu, 26 Apr 2012 08:00:00 GMT Disclosure of Property in Bankruptcy
When filing a bankruptcy, clients are required to list and disclose their property in the bankruptcy petition when it is filed.  Debtors often wonder what needs to be disclosed and what does not.  If there is a doubt whether it should be included, it is probably a good idea to speak with your attorney about the matter, and they will be able to advise you more specifically where the property should be included in the petition.
The bankruptcy schedules require Debtors to disclose personal property, such as vehicles, furniture, household goods, jewelry, wedding rings, bank accounts and the money in those accounts, cash on hand, retirements funds, annuities, stocks, tools and other equipment, clothing, books and pictures, electronic equipment, interest in insurance policies that are pending, and tax refunds, etc.  Schedule B specifically asks about each of these items, as well as other items, and Debtors have an obligation to disclose the applicable property with a value and description of the property.  If there are things that are not included in the bankruptcy petition and the Trustee finds out, they may assume the Debtor was trying to hide the assets, and the Debtor may be investigated for bankruptcy fraud.  Attorneys usually have no way of knowing what property Debtors have unless they are informed so it is very important for Debtors to inform their attorney of what property they have and how much the property is worth.
It is also important for Debtors to list any real property they may have, including houses, timeshare units, and mobile homes, as well as the value of the property so the Trustee can determine if there is equity in the property.
Listing one's property is essential for many reasons.  There can be situations where the property not be listing can negatively affect Debtors outside the bankruptcy proceedings.  One example is if a Debtor's house is robbed or if there is a fire in the residence.  Insurance companies will often check the bankruptcy schedules if the insured has filed a bankruptcy.  If the property the Debtor has included in the insurance claim is not listed in the bankruptcy paperwork, the insurance company can deny the claim and report the Debtor to the Trustee for not have accurate information in their bankruptcy schedules.  The same situation applies with one's car.  If the car is stolen or is in an accident and needs repairs, the insurance company can deny the claim if the property is not listed appropriately in the bankruptcy petition.  It is therefore essential for Debtors to list their property.  If you have any questions about this, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/disclosure%2Dof%2Dproperty%2Din%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-79947 Fri, 20 Apr 2012 08:00:00 GMT What Issues Can Arise If I File Bankruptcy More Than Once?
There are certain restrictions with regard to how often people can file bankruptcy petitions, and some issues can arise if a person files bankruptcy more than once.  As a general rule, a person can file a Chapter 7 bankruptcy eight years after they file another Chapter 7.  If a Chapter 13 is filed first, a person can file a Chapter 7 four years later.  If a person files a Chapter 7 first and then a Chapter 13, the waiting period is six years.  Going from a Chapter 13 to another Chapter 13 only requires a waiting period of two years.  If the case is dismissed for some reason, that bankruptcy does not count in these figures.
If a Debtor is not eligible to receive a discharge under a Chapter 7 or 13 bankruptcy because of the time restraint, they will not be able to file a Chapter 7 bankruptcy, but the Debtor can file a Chapter 13 bankruptcy.  However, they will not be able to receive a discharge under the bankruptcy if six years have not passed since the filing of the Chapter 7 or 2 years since the filing of the Chapter 13.  They will ultimately have to dismiss and re-file when they are eligible for a discharge.
There are other issues that can arise if people file several bankruptcies in a short period of time, even if they are dismissed and not discharged.  If a person files a Chapter 13 bankruptcy and has had another bankruptcy case pending in the last year, there is only a 30 day automatic stay, and a Motion to Extend the Automatic Stay will need to be filed.  If there has been two or more cases pending in the last year at the time of the filing of the Chapter 13, there is no automatic stay, and a Motion to Impose the Automatic Stay will need to be filed.  What that means is that there is no automatic stay protecting a Debtor's property until that motion is granted.  That means a vehicle can be repossessed or a house can be foreclosed until the time the Motion to Impose is granted.  A Debtor may want to speak to their attorney about filing for an expedited hearing to impose the stay in a timely manner, but it is up to the bankruptcy Judges about whether they will hear the manner expeditiously or whether it will need to be heard at the next docket.  It is important for attorneys to do a Pacer check on clients before filing using their social security number so they can determine if previous bankruptcy cases have been filed and file motions and advise accordingly.  If you have questions about this, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/what%2Dissues%2Dcan%2Darise%2Dif%2Di%2Dfile%2Dbankruptcy%2Dmore%2Dthan%2Donce%2Ecfm www.lickerlawfirm.com-79949 Fri, 20 Apr 2012 08:00:00 GMT Prior to your 341 meeting the trustee will review your petition.  The trustee will also require your most recent pay stubs, your most recent tax refund, and bank statements.  The trustee is looking for an idea of your income and your assets, consisting of property and money.  Many of your assets are protected in bankruptcy, the trustee is simply looking to see if some are not.  The trustee has to weigh your interests with those interests of the creditors. 
As mentioned previously, the trustee will swear you in.  You will testify on the record.  He will ask you if you read the schedules you signed.  If you have omitted anything this would be the time to mention the omission to the trustee. 
For those in a Chapter 7 Bankruptcy, the trustee will review the case, and if there are no assets will close out the case in a matter of months.  For those in a Chapter 13 Bankruptcy, you will have the same 341 meeting, however, the trustee will stay active in your case for the entire term of your plan.  Each year, tax returns and refunds will need to be submitted to the trustee, as well as any change in income or inheritance.
Though the trustee is not a judge, he or she is still a part of your bankruptcy. You have an obligation to provide any information or documents that the trustee requests from you at any point during your bankruptcy.  Even in a Chapter 7 bankruptcy, you may risk having your discharge revoked before your case is closed if you do not provide requested documentation.
If you still have questions, or would like to set up a consultation, contact a St. Louis Bankruptcy Attorney today!  
]]> http://www.lickerlawfirm.com/blog/bankruptcy%2Dtrustees%2Ecfm www.lickerlawfirm.com-79338 Fri, 13 Apr 2012 08:00:00 GMT Does Social Security Count as Income in Bankruptcy?
In determining whether social security proceeds count as income in bankruptcy, the answer is both yes and no.  For purposes of the Means Test (also known as Form 22A - Statement of Current Monthly Income/Means Test in a Chapter 7 and Form 22C - Current Monthly Income/Disposable Income in a Chapter 13), social security income does not need to be listed and will not count as income.  The means test is what determines whether a person is eligible to file a Chapter 7 bankruptcy based on their income.  If a person is below median for their household size, they can file a Chapter 7 bankruptcy.  If they are over, they may have to file a Chapter 13 bankruptcy.  Therefore, social security income not counting as income for purposes of the means test is extremely helpful for people who may be close to being over median and may help them file a Chapter 7 bankruptcy.
Even though social security income does not get included in the means test, it is still necessary to include social security income in Schedule I, which states the current income for debtors, along with any other forms of income the debtor may have.  When taking into account a debtor's income and expenses in Schedules I and J (expenses), if there is money left over every month not allocated to the debtor's monthly expenses, the Trustee may file a 707(b) objection.  This means the Trustee believes there is abuse occurring.  The United States Code, Title 11, Section 707(b)(1) states, "after notice and a hearing, the court, on its own motion or on a motion by the United States trustee, trustee ... or any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts, or, with the debtor’s consent, convert such a case to a case under chapter 11 or 13 of this title, if it finds that the granting of relief would be an abuse of the provisions of this chapter." 
The trustee may file a motion to dismiss when the exclusion of social security income in the means test allows for a person to qualify for a Chapter 7 bankruptcy, but a positive excess in Schedule I would indicate abuse because the debtor has excess funds available to pay their unsecured creditors.  It is very important for debtors to list all their monthly expenses so Schedule I and J are accurate.  If you would like additional information, please contact a St. Louis or St. Charles bankruptcy attorney.
]]> http://www.lickerlawfirm.com/blog/does%2Dsocial%2Dsecurity%2Dcount%2Das%2Dincome%2Din%2Dbankruptcy%2Ecfm www.lickerlawfirm.com-79292 Thu, 12 Apr 2012 08:00:00 GMT