Myths and Truths About Chapter 7 Bankruptcy: Part II 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.

Myths and Truths About Chapter 7 Bankruptcy: Part II<br />Myth:&nbsp; Debtors can include some creditors in a <a href="http://en.wikipedia.org/wiki/Bankruptcy">bankruptcy</a> and leave out other creditors so that some creditors can be discharged while debtors continue to pay other creditors.<br />Truth:&nbsp; Debtors may not include some creditors in a bankruptcy but not others.&nbsp; Any creditor who debtor owes money at the time of the filing of the bankruptcy must be listed in the bankruptcy petition.&nbsp; 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.&nbsp; The trustee will ask the debtor under oath at the 341 Creditor meeting whether all creditors have been listed.&nbsp; 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.&nbsp; The trustee does not want some creditors to get preferential treatment.&nbsp; If the balance on a particular account is $0, the debtor does not need to list that creditor on the petition.<br />A debtor can continue to pay on secured loans, such as a house or a car.&nbsp; The trustee allows those debts to be paid back because they are secured.&nbsp; 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.<br />Myth:&nbsp; 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.<br />Truth:&nbsp; A debtor cannot transfer property to avoid the trustee or their creditors.&nbsp; 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.&nbsp; The trustee can void the sale or transfer of the property if within the two years prior to the filing.&nbsp; 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.&nbsp; If the transfer is not listed in the bankruptcy petition, the debtor would be in violation of the bankruptcy rules.<br />If you have any questions, please contact a <a href="http://www.lickerlawfirm.com">St. Louis or St. Charles bankruptcy attorney</a>.<br />

Myths and Truths About Chapter 13 Bankruptcy: Part II<br />Myth:&nbsp; Debtors who file a Chapter 13 <a href="http://en.wikipedia.org/wiki/Bankruptcy">bankruptcy </a>will lose their entire tax refund every year they are in the Chapter 13 without exception.<br />Truth:&nbsp; Sometimes debtors in a Chapter 13 bankruptcy are required to turn over their tax refunds.&nbsp; 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.&nbsp; The debtor is required to turn the excess over to the trustee and should not spend the rest of the refund.&nbsp; 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.&nbsp; 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.&nbsp; The trustee has 21 days to object.&nbsp; If no objection is filed, the debtor can retain the portion of their refund accounted for by the motion.&nbsp; If the trustee objects, the debtor would be required to surrender their tax refund to the trustee.&nbsp;<br />Myth:&nbsp; When the debtor makes his or her Chapter 13 plan payment every month, the trustee takes most of the money for himself.<br />Truth:&nbsp; The trustee gets paid a small percentage of the total plan base as his fee.&nbsp; The percentage rate fluctuates but is usually about five percent.&nbsp; The trustee disperses the rest of the monthly plan payments to various creditors.&nbsp; The trustee pays on secured debts, such as vehicle loans, arrears on houses, and monthly mortgage payments if the debtor wishes.&nbsp; They also pay taxes, unsecured debts, sewer bills, and other debts as well.&nbsp; If the debtor is required to surrender tax refunds or employee bonuses, the trustee does not keep that money for himself.&nbsp; He generally uses those proceeds to pay unsecured creditors a portion of their debt if they have filed a proof of claim.&nbsp; The trustee may pay certain creditors before other creditors based on their priority level.<br />If you have questions, please contact a <a href="http://www.lickerlawfirm.com">St. Louis or St. Charles bankruptcy attorney</a>.<br />

If a debtor chooses to file bankruptcy he/she files a voluntary petition for bankruptcy with the court.  If a creditor attempts to force an individual into a bankruptcy it is considered involuntary.  Basically, this happens when a creditor feels that the only way they will recover anything from the debtor is to force them into bankruptcy.  At this point, the creditor will file a motion with the court.  If the court grants this motion the debtor is required to proceed with the bankruptcy. If a debtor receivesnotice of an involuntary bankruptcyand does not wish to be in bankruptcy, he/she should contact an attorney as soon as possible.  It is possible to defend against this motion, but there is a very small window of time to respond.  If you do not respond in time the court may grant the motion.  If a debtor does win his/her case and does not have to file for bankruptcy he/she may be able to get the costs of attorney's fees and the defense reimbursed. This may all sound frightening, however, there are certain minimum amounts of debt.  A creditor cannot just force anyone into a bankruptcy.  Minimumsdepend 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.If you have any questions, or would like to set up a free consultation, contact a St. Louis Bankruptcy Attorney today. 

If a debtor chooses to file bankruptcy he/she files a voluntary petition for bankruptcy with the court.&nbsp; If a creditor attempts to force an individual into a bankruptcy it is considered involuntary.&nbsp; Basically, this happens when a creditor feels that the only way they will recover anything from the debtor is to force them into bankruptcy.&nbsp; At this point, the creditor will file a motion with the court.&nbsp; If the court grants this motion the debtor is required to proceed with the bankruptcy. &nbsp; If a debtor receives notice of an involuntary bankruptcy and does not wish to be in bankruptcy, he/she should contact an attorney as soon as possible.&nbsp; It is possible to defend against this motion, but there is a very small window of time to respond.&nbsp; If you do not respond in time the court may grant the motion.&nbsp; If a debtor does win his/her case and does not have to file for bankruptcy he/she may be able to get the costs of attorney's fees and the defense reimbursed.<br />This may all sound frightening; however, there are certain minimum amounts of debt.&nbsp; A creditor cannot just force anyone into a bankruptcy.&nbsp; Minimums depend on whether a debtor has a business or it is simply personal. &nbsp; Importantly, and involuntary bankruptcy cannot be filed as a Chapter 13.&nbsp; Depending on your situation, you may prefer, or need to file a Chapter 13.&nbsp; The long and short is, if you get notice of an involuntary bankruptcy proceeding, you should contact an attorney as soon as possible.&nbsp; It may be in your best interest to file for bankruptcy, and that is something an attorney can help you determine.&nbsp; 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.<br />There is another circumstance where debtor(s) may find themselves in an involuntary bankruptcy.&nbsp; Any time an individual files for bankruptcy the bankruptcy trustee has the ability to look into financial records, <a title="Missouri Bankruptcy Exemptions" href="http://www.lickerlawfirm.com/blog/missouri-bankruptcy-exemptions.cfm">assets</a>, and property.&nbsp; 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.&nbsp; 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.<br />If you have any questions, or would like to set up a free consultation, contact a <a title="St. Louis Bankruptcy Attorney" href="http://www.lickerlawfirm.com/">St. Louis Bankruptcy Attorney </a>today.<br />

After a long weekend with 900 bankruptcy colleagues, I’ve been thoroughly reminded about all that remains to be learned about this marvelous profession.  What did I learn, and what was missing? I took my first bankruptcy case 32 years ago, and looking back, I blanch at what I didn’t know then.  Even now, I see new angles, new complexities in a law I’ve been reading almost daily for more than 3 decades. An Ocean Of Education Lots of the learning this  weekend happened in the formal presentations by judges and law professors at the NACBA 20th annual convention in San Antonio. Almost every panel chaffed against the constraints of time.  Even subjects that seemed tidy and discrete threatened to overflow the allotted time. But perhaps equally useful and stimulating was the learning that went on around the tables and in the hallways, where my teachers were my friends, old and new, from around the country.  I’d hear that “my judge does it this way” or “I’m bringing cases that argue that”. Someone would lean over and show me a software program or an operating system trick that saved time or filled a need.  I tried live blogging, until the interest in the endeavor crashed our host’s server and they shut us down as a nuisance<g>. Of course, no program is perfect.  There was a critical piece of the puzzle that was missing from the weekend. What We Missed In San Antonio What didn’t get much play in San Antonio was the nitty-gritty issue of finding clients and making a living in the bankruptcy business.  It doesn’t matter how well you know the Code; if you can’t draw people who both need you and can pay the freight for a fresh start then you’re engaging in an academic, rather than a commercial, endeavor. There was a marketing discussion but, as I’ll leave to Jay when he’s ready to speak on the subject without hyperventilating, it was woefully inadequate. Some of the information provided was questionable, at best.  Some of it could land an attorney in an ethical quandary if taken literally. Here’s The Missing Piece – Your Cure For An Ailing Bankruptcy Practice On June 9, 2012 Jay Fleischman and I will join forces at the Crowne Plaza Hotel – St. Louis Airport in (obviously) St. Louis for the Bankruptcy Practice Workshop, a day-long intensive live educational experience that happens to suffer from an exceptionally boring name.   Brush aside boredom, and fend off involuntary dieting.   Sharpen your skills by learning: how to attract more clients how to ensure that your website is designed for maximum usability and conversions how to get paid what you’re worth – not what the court arbitrarily sets as your “no look” fee how to create online content that convinces your visitors to work with you – not your competition – while improving your search engine placement how to use the most important WordPress plugins more effectively how to build a profitable network online and offline how to compete where the world seems to be a race to the bottom of the fee scale how to budget your time among social and business media platforms how to unearth the hidden gems in Adobe Acrobat to make your life easier how to stack your office with low cost/high return products and procedures how to grow your referral base quickly and easily and more As a reader of Bankruptcy Mastery, you can save $100 off the registration price when you use the Promo Code bkmllp at checkout. You can learn more about the Bankruptcy Practice Workshop by clicking here. For now, I’m back to my convention materials, trying to transfer an ocean of information to my head with a teaspoon. Like This Article? You'll Love These! Bankruptcy Mastery Will Provide Live Coverage Of NACBA San Antonio Convention Stripping in San Antonio NACBA San Antonio: Marketing A Bankruptcy Practice

Here’s what I would have blogged live if the interest in our live blogging hadn’t crashed the server and required uninstallation of the software that would allow us to be really live. Honorable Robert Berger, KC KS; James Molleur counsel in Pratt case Long standing problem, previously with cars, now endemic with housing. Surrender shows up lots of places in Code. Doesn’t mean they have to turn collateral over to creditor, just make it available to creditor.  What does surrender mean when creditor ignores it?  Court in Pratt and Rash repeat: “you can always surrender.” Pratt court created a theory of objective coercion. Page 198-199 discussion of the theory. Debtor filed statement, made it available to creditor, couldn’t junk it,  Judge noted behavior of mortgage lenders who in absence of reafffirmation won’t speak to debtor or send mortgage statements. Equally coercive.   Real Estate Molleur: when clients simply want to move on and shed the house, if the creditor doesn’t take it back, the property acrues taxes, sewer charges, water fees, property needs to be winterized, secure it against break in. Liability for personal injury remains and insurance companies won’t insure a vacant property. HOA dues continue to accrue. Berger decided that the non dischargeable HOA fees did not entitle the HOA to attorneys fees for the HOA; notes that there is little guidance in Colliers or anywhere else. He filed the Canning case for Chapter 13 debtors with huge HOA fees for an old building with huge maintenance costs. Judge: food for thought about using 363 sales for the value of the collateral. Chapter 13 debtor can use the other powers of the Code. Judge thinks the trustee and the debtor in 13 hold the Chapter 5 powers concurrently. Look at Chapter 13 beyond just the confirmation issues. Molleur: ideas for dealing with surrender issues In his area, the courts don’t allow forced short sales under 363 short sales deeds in lieu Chapter 13 plan language, requiring lender to X (to accept deed, perhaps) r/s order requiring lender to take certain action deed house to homeless person municipal ordinances that penalize or hold lenders discharge injunction violation Canning run down house on river in Sanford, ME. Debtors elected to surrender and moved out. A foreclosure was commenced then dismissed the foreclosure. Creditor sent letter to debtor (in materials page 206 of materials) indicating they wouldn’t foreclose or pay taxes and insurance. Molleur claimed it was discharge injunction violation.   He tried it on stipulated and facts and now thinks having trial testimony on some of these subjects. What he wished he had was testimony on the motivation of creditor in doing nothing. HSBC claimed this was too quick to claim Pratt and that real estate always has some value, distinguished from the worthless car in Pratt.  He got award of damages for dunning letters saying that debtors had to pay.   Tips:  have evidentiary hearing and get motivation testimony.  Have a Chapter 13 sale plan with an eye on Espinosa.       Like This Article? You'll Love These! Struggling with “adequate protection” Surrendering Property in Bankruptcy Here’s How To Charge More For A “Simple” Bankruptcy Case

Welcome to the 20th annual NACBA convention, here in San Antonio, TX.  We’ll be live blogging much of the convention over the next few days, so stay on this site for all the updates. [liveblog] Like This Article? You'll Love These! Bankruptcy Mastery Will Provide Live Coverage Of NACBA San Antonio Convention Bankruptcy Lawyers Convene [...] Like This Article? You'll Love These! Bankruptcy Mastery Will Provide Live Coverage Of NACBA San Antonio Convention Bankruptcy Lawyers Convene in San Francisco Blog Heaven

Often times, when considering filing for bankruptcy, people are concerned with the perceived stigma  around filing for bankruptcy and/or who might find out that they have filed. First, let's address the perceived stigma of filing for bankruptcy.  In 2011 alone over 1.5 million people filed for bankruptcy.  This number has doubled since 2007.  Bankruptcy filings go hand in hand with the economy.  In a struggling economy it can be very difficult to find gainful employment, to remain employed, and even to pay bills that keep piling up.  Often times debtors have been struggling for some time and there is one major event or issue that pushes them over the top, whether it is a medical issue, losing a job, a law suit, or even having a child.  When it becomes to much to handle you do have legal options and we are here to help.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.

Often times, when considering filing for bankruptcy, people are concerned with the perceived stigma&nbsp; around filing for bankruptcy and/or who might find out that they have filed. First, let's address the perceived stigma of filing for bankruptcy.&nbsp; In 2011 alone over 1.5 million people filed for bankruptcy.&nbsp; This number has doubled since 2007.&nbsp; Bankruptcy filings go hand in hand with the economy.&nbsp; In a struggling economy it can be very difficult to find gainful employment, to remain employed, and even to pay bills that keep piling up.&nbsp; Often times debtors have been struggling for some time and there is one major event or issue that pushes them over the top, whether it is a medical issue, losing a job, a law suit, or even having a child.&nbsp; When it becomes to much to handle you do have legal options and we are here to help.<br />Though pursuing an legal option to eliminate debt, many people are still concerned with&nbsp; who might find out.&nbsp; 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.&nbsp; Perhaps the most important question to ask is not who could find out, but who would care.&nbsp; Chances are you neighbors are not sifting through piles of public records daily just to see what you are up to.&nbsp;<br />All of your creditors that are listed will get notice of you bankruptcy proceeding.&nbsp; The court, the local <a title="Who is the trustee?" href="http://www.lickerlawfirm.com/blog/bankruptcy-trustees.cfm">trustee</a>, and the United States Trustee's office will all get notice.&nbsp; Not to worry, all of these people get notice of every bankruptcy filing.&nbsp;<br />Some prospective employers may ask if you have ever filed for bankruptcy.&nbsp; We recommend that you are honest, and for many employers, this may not bar you from employment, they may just want further explanation.&nbsp; 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.&nbsp; 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.<br />Some mortgage lenders and rental properties will ask if you have filed for bankruptcy.&nbsp; 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.&nbsp; 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.&nbsp; There may be some apartment complexes that will not rent to you if you have filed for bankruptcy.&nbsp; However, there are many that will rent to you, even immediately after filing for bankruptcy.&nbsp; This will be up to each individual company and may vary by location.&nbsp; The best advice is to be honest if asked.<br />If you have questions, or would like to set up a free consultation, contact a <a title="St. Louis Bankruptcy Attorney" href="http://www.lickerlawfirm.com">St. Louis Bankruptcy Attorney</a> today.<br />