Most debtors do not like to spread around the fact that they owe any money. Your debt is a matter which is between you and the person to whom you owe money. One of the common debt collection tactics is threatening to tell others about your debt. There are however, rules to protect you and [...]

When filing for bankruptcy a petition must be filed.  If the debtor has an attorney the attorney generally fills out the petition based on information provided by the client.  The attorney will then meet with the client to have the individual(s) review and sign the petition.  While the attorney does fill this out, the debtor(s) are responsible for the information.  It is very important that the individual is open and honest with the attorney.  It is also very important that the debtor carefully reviews the petition to make sure that all information is accurate and disclosed.  If a debtor is unsure of whether an asset should be disclosed it is always better to discuss the matter with an attorney who can give proper legal advice.  The debtor will also attend a creditors meeting.  The bankruptcy trustee will ask if all information is accurate and all assets and debts have been disclosed.  If there is anything missing this is the debtor's opportunity to disclose the information.  If information is disclosed at the creditors meeting the schedules filed with the bankruptcy petition will likely need to be amended to reflect that information.In the event that a debtor does not disclose all information on the bankruptcy petition a number of things can happen. Failing to disclose information is considered fraud.  Bankruptcy proceedings are federal matters, and are subject to investigation by the United States Trustee and the Federal Bureau of Investigation.  Fraud, or attempted fraud, is punishable by fines and/or incarceration in a federal prison.If a debtor fails to disclose creditors that creditor may not be discharged as they did not receive notice and did not have an opportunity to be heard at the creditors  meeting.  If a debtor realizes that a creditor was omitted the debtor should amend his/her schedules to reflect that information as soon as possible.If a debtor fails to disclose assets a number of things can happen.  Depending on the asset the schedules can be amended.  If a debtor fails to disclose an asset the trustee can object to exemptions being applied.  If the asset is large, or worth any sum of money, the trustee can hold the case open or require the debtor to convert their case.  At this time the debtor may be able to pay the trustee for the property, but if that is not an option, may be required to turn over the property.  Once a Chapter 7 case is determined to have assets the debtor may not be able to voluntarily dismiss the bankruptcy proceeding. If you have questions about this, or would like to schedule a consultation, contact a St. Louis Bankruptcy Attorney Today.

<p>When filing for bankruptcy a petition must be filed.&nbsp; If the debtor has an attorney the attorney generally fills out the petition based on information provided by the client.&nbsp; The attorney will then meet with the client to have the individual(s) review and sign the petition.&nbsp; While the attorney does fill this out, the debtor(s) are responsible for the information.&nbsp; It is very important that the individual is open and honest with the attorney.&nbsp; It is also very important that the debtor carefully reviews the petition to make sure that all information is accurate and disclosed.&nbsp; If a debtor is unsure of whether an asset should be disclosed it is always better to discuss the matter with an attorney who can give proper legal advice.&nbsp; The debtor will also attend a creditors meeting.&nbsp; The bankruptcy trustee will ask if all information is accurate and all assets and debts have been disclosed.&nbsp; If there is anything missing this is the debtor's opportunity to disclose the information.&nbsp; If information is disclosed at the creditors meeting the schedules filed with the bankruptcy petition will likely need to be amended to reflect that information.</p><p>In the event that a debtor does not disclose all information on the bankruptcy petition a number of things can happen. Failing to disclose information is considered fraud.&nbsp; Bankruptcy proceedings are federal matters, and are subject to investigation by the United States Trustee and the Federal Bureau of Investigation.&nbsp; Fraud, or attempted fraud, is punishable by fines and/or incarceration in a federal prison.</p><p>If a debtor fails to disclose creditors that creditor may not be discharged as they did not receive notice and did not have an opportunity to be heard at the creditors&nbsp; meeting.&nbsp; If a debtor realizes that a creditor was omitted the debtor should amend his/her schedules to reflect that information as soon as possible.</p><p>If a debtor fails to disclose assets a number of things can happen.&nbsp; Depending on the asset the schedules can be amended.&nbsp; If a debtor fails to disclose an asset the trustee can object to exemptions being applied.&nbsp; If the asset is large, or worth any sum of money, the trustee can hold the case open or require the debtor to convert their case.&nbsp; At this time the debtor may be able to pay the trustee for the property, but if that is not an option, may be required to turn over the property.&nbsp; Once a Chapter 7 case is determined to have assets the debtor may not be able to voluntarily dismiss the bankruptcy proceeding.&nbsp;</p><p>If you have questions about this, or would like to schedule a consultation, contact a <a title="Completing and Filing a Bankruptcy Petition" href="http://www.lickerlawfirm.com">St. Louis Bankruptcy Attorney </a>Today.</p>

Many people go to extreme measure to avoid filing for bankruptcy.  There are a number of alternatives that people may consider that can actually be worse in the long run than filing for bankruptcy.  Below are a few examples.1. Debt Consolidation Options.  There are a number of companies that will offer to consolidate your credit cards and help to improve your credit.  Be very cautious here and ask them to explain the entire process to you.  Many of the places will tell you to stop making your payments to creditors and direct your payment amounts to the company instead.  They will then hold onto this money until it reaches a certain amount and then will negotiate your debt down, sometimes only paying cents on the dollar of what you owe.  This can have a number of negative implications.  First, your credit will continue to worsen as your bills go unpaid for months.  Second, the fees that some of these companies charge are exhorbitant. Third, the difference between what you owe and what they will pay your creditors will be considered taxable income to you.  Finally, this is a service that you do not need to pay for.  You could hold on to your own money and negotiate the debt down yourself.2. Charge Off of Accounts.  Many times debtors are relieved when companies charge off an account or mark it as uncollectable.  An important thing to note is that this does not mean that the creditor does not have a legal right to collect.  Often times the original creditor will sell the account to another party and that third party may start to harass you about the debt.  Also, as mentioned above, any amount charged off is considered "discharge of indebtedness" and is taxable income.  For example, if you owe 10,000 to your credit card and they settle for 2,000 the 8,000 written off should be reported on your tax returns the following year.  You will be taxed on this money as you are taxed on your income, which may mean that you owe taxes you didn't expect to owe. 3. Ignoring the problem.  Creditors will not usually disappear and may even start contacting you at work or contacting your friends and family members. Ignoring the problem will not make it any better.If you have questions, or would like to schedule a free consultation, contact a St. Louis Bankruptcy Attorney Today.

<p>Many people go to extreme measure to avoid filing for bankruptcy.&nbsp; There are a number of alternatives that people may consider that can actually be worse in the long run than filing for <a title="Chapter 7 Bankruptcy" href="http://www.lickerlawfirm.com/library/chapter-7-bankruptcy2.cfm">bankruptcy</a>.&nbsp; Below are a few examples.</p><p>1. Debt Consolidation Options.&nbsp; There are a number of companies that will offer to consolidate your credit cards and help to improve your credit.&nbsp; Be very cautious here and ask them to explain the entire process to you.&nbsp; Many of the places will tell you to stop making your payments to creditors and direct your payment amounts to the company instead.&nbsp; They will then hold onto this money until it reaches a certain amount and then will negotiate your debt down, sometimes only paying cents on the dollar of what you owe.&nbsp; This can have a number of negative implications.&nbsp; First, your credit will continue to worsen as your bills go unpaid for months.&nbsp; Second, the fees that some of these companies charge are exhorbitant. Third, the difference between what you owe and what they will pay your creditors will be considered taxable income to you.&nbsp; Finally, this is a service that you do not need to pay for.&nbsp; You could hold on to your own money and negotiate the debt down yourself.</p><p>2. Charge Off of Accounts.&nbsp; Many times debtors are relieved when companies charge off an account or mark it as uncollectable.&nbsp; An important thing to note is that this does not mean that the creditor does not have a legal right to collect.&nbsp; Often times the original creditor will sell the account to another party and that third party may start to harass you about the debt.&nbsp; Also, as mentioned above, any amount charged off is considered "discharge of indebtedness" and is taxable income.&nbsp; For example, if you owe 10,000 to your credit card and they settle for 2,000 the 8,000 written off should be reported on your tax returns the following year.&nbsp; You will be taxed on this money as you are taxed on your income, which may mean that you owe taxes you didn't expect to owe.&nbsp;</p><p>3. Ignoring the problem.&nbsp; Creditors will not usually disappear and may even start contacting you at work or contacting your friends and family members. Ignoring the problem will not make it any better.</p><p>If you have questions, or would like to schedule a free consultation, contact a <a title="St. Louis Bankruptcy Attorney" href="lickerlawfirm.com">St. Louis Bankruptcy Attorney</a> Today.</p>

Someone asked me the other day how I keep up on cases. I bit my tongue, since my usual sense about advance sheets and the like is that I’m horribly behind.  (I’m so behind I’m talking about “advance sheets”, cases printed on paper!). Reading my email seems to consume a disproportionate portion of the day.  What advice could I possibly have about being current? OK.  If you need an answer, it’s obviously that I read. It’s not always the cases themselves, but what other lawyers have written about them.  Yeah, I’m getting my stuff second hand.  Such is life, at least mine. Try this list: National Consumer Bankruptcy Rights Center,  NACBA’s offspring.  Tara Twomey and her cohorts find the stuff that’s most important to us as bankruptcy lawyers. ConsiderChapter13.org  I think it a real shame that most of this highly useful content, including the stuff I write for them, is behind a pay wall. BankruptcyLawNetwork  My buds at BLN have a toe in lots of different courts, so important stuff bubbles to the surface here. 9th Circuit BAP opinions   Insert your own BAP or Circuit Court ABI’s monthly publication  It’s frustratingly skewed to Chapter 11, but there are consumer nuggets nonetheless.  It also is a membership benefit, so there’s money involved. I have a Lexis Nexis alert set up to point me to new means test cases, since that’s a subject I write and speak about frequently. Beyond that, my knowledge is random. I’m headed back to preparing for my gig next weekend with Jay Fleischman on marketing and managing a bankruptcy practice.  I may be scarce here for the next week. Image courtesy of Horia Varlan. No related posts.

Bankruptcy lawyers find themselves thrown under the proverbial bus time and again. Clients contradict themselves, trustees speak poorly of us during hearings, and even judges from time to time have been known to call us on the carpet for perceived shortcomings. Sometimes we’re caught in a position due to an unforeseen turn of events. Other times, we end up stepping under the bus because we weren’t paying attention in the first place. There are, thankfully, a few simple rules to help you stay away from the tire treads as the bus rolls by. The Initial Consultation My good friend Susanne Robicsek told me years ago that she asked her client during a consultation whether he had a sofa. When he said that he didn’t, she asked if he had a couch. Of course, came the response. It’s important to spend as much time as is necessary on the initial consultation, working through not only the questions that will need to be answered on the Statement of Financial Affairs but on every aspect of the petition and schedules. Ask the same question ten different ways, not because your client is looking to trip you up but because real people use different words than do bankruptcy lawyers. Even the most common terms – debt, creditor and property – have different meanings to our clients. Pick Up Tidbits From Other Fields Bankruptcy lawyers need to have a working knowledge of other areas of law. Family law, tax, personal injury and immigration spring to mind. Without knowing enough to spot the issues, you’re asking for trouble. Let’s say your client has equity-laden rental property and decides to sell it to pay off debts. Without a working knowledge of tax law, you’re going to find out the hard way that selling an asset doesn’t necessarily translate into pure profit. Document Your Conversations Some lawyers have their clients fill out lengthy packets in the run-up to filing for bankruptcy. If that works for your client base, by all means keep on going with that practice. For the people I help, packets are unproductive. That’s why I document every conversation, keeping detailed notes. If I’m on the phone with a client, I record it (with disclosure to the client) and save the audio file. The client gets a copy of it as well. As with the consultation, I do this because clients live in a world that differs from mine. They’re confused, scared and depressed – and that clouds their memories and thoughts. Keeping records and notes to share with my clients gives them the opportunity to review them later on and, if need be, make corrections to the information they provide to me. Measure Twice, Cut Once In carpentry, you’re supposed to measure the wood twice before you take a saw to it. That reduces the number of errors. So, too, in bankruptcy work. Review the draft petition twice – once on your own, once with your client. Yes, it takes longer that way. Yes, your client’s unfamiliarity with the legal terminology will make it take even longer. Still, it’s the only way to ensure that the documents that get filed with the court accurately reflect your client’s state of affairs. Sidestep When Necessary No matter how hard you try, there will be something that gets past your watchful eye from time to time. Some clients are less than forthcoming, others simply too befuddled to be reliable. In those situations, consider whether it’s a good idea to withdraw from representation. Remember that your reputation is too important to risk on a single bankruptcy case. Your career will be a long one, and you’ll need to rely on that reputation from time to time. Don’t squander this valuable currency. Jay S. Fleischman is a bankruptcy lawyer and legal marketing consultant for bankruptcy lawyers.  In his spare time, he thinks up new ideas to minimize his spare time. Image credit:   Earls37a Like This Article? You'll Love These! Clients to avoid: those with bankruptcy-adverse spouses Avoid Probate: Lose The Property In Bankruptcy Instead Number One Reason to Avoid Taking a Chapter 11

A Chapter 13 Bankruptcy generally lasts for a period of five years.  As we all know a lot can change in a five year period.  Over the course of five years debtors may marry, have children, need to purchase a vehicle, or even suffer damage to a home or vehicle already owned.  If a debtor becomes entitled to insurance proceeds while in bankruptcy he should notify his attorney as soon as possible.  The general rule is that if a debtor becomes entitled to any sum of money it must be turned over to the bankruptcy trustee to be distributed to creditors.  Common sources of money that need to be disclosed, and potentially turned over, include money or property from an inheritance, tax refunds, insurance proceeds and so on.  As a rule of thumb, if you receive any money you should inform your attorney.  If you want to keep the money that you are entitled to you can file a motion to retain the proceeds.  This will have to be submitted to the court and it is generally set on negative notice.  This means that your attorney will submit your motion to retain and if no one objects to the motion within 21 days you will be able to keep the money received.  Any number of people may object, including the trustee and/or one of your creditors.   It is important to note that if you receive insurance proceeds for property, i.e. a vehicle, and there is a total loss any existing loan balance has to be paid off before any funds would be released to you if your motion to retain is successful.   If you would like to retain insurance proceeds your attorney will need a number of things to prepare your motion to retain.  Your attorney will need to know how much money you will be receiving for the property.  If the property is not a total loss and just needs repairs your attorney will need to know the estimated cost of repairs.  It is best if you can provide a written estimate from a qualified individual to your attorney to file with the motion.  If the property is a total lose (i.e. a vehicle that you are not keeping) your attorney will need to know how you intend to spend the money received.  Perhaps you need to replace your vehicle.  Again, it is best to provide written figures for how you will spend the money.  If you would like to purchase a new car with a loan your attorney will also need to submit a motion to incur debt.  Please keep in mind that this process will take time.  The motion will be submitted and it will be at least 21 days before a decision is made. From there your attorney will have to submit an order and the judge will need to sign the motion.  If you have questions, or would like to set up a free consultation, contact a St. Louis Bankruptcy Attorney today.

<p>A Chapter 13 Bankruptcy generally lasts for a period of five years.&nbsp; As we all know a lot can change in a five year period.&nbsp; Over the course of five years debtors may marry, have children, need to purchase a vehicle, or even suffer damage to a home or vehicle already owned.&nbsp; If a debtor becomes entitled to insurance proceeds while in bankruptcy he should notify his attorney as soon as possible. <br />&nbsp;<br />The general rule is that if a debtor becomes entitled to any sum of money it must be turned over to the bankruptcy trustee to be distributed to creditors.&nbsp; Common sources of money that need to be disclosed, and potentially turned over, include money or property from an inheritance, tax refunds, insurance proceeds and so on.&nbsp; As a rule of thumb, if you receive any money you should inform your attorney. <br />&nbsp;<br />If you want to keep the money that you are entitled to you can file a motion to retain the proceeds.&nbsp; This will have to be submitted to the court and it is generally set on negative notice.&nbsp; This means that your attorney will submit your motion to retain and if no one objects to the motion within 21 days you will be able to keep the money received.&nbsp; Any number of people may object, including the trustee and/or one of your creditors.&nbsp; <br />&nbsp;<br />It is important to note that if you receive insurance proceeds for property, i.e. a vehicle, and there is a total loss any existing loan balance has to be paid off before any funds would be released to you if your motion to retain is successful.&nbsp; <br />&nbsp;<br />If you would like to retain insurance proceeds your attorney will need a number of things to prepare your motion to retain.&nbsp; Your attorney will need to know how much money you will be receiving for the property.&nbsp; If the property is not a total loss and just needs repairs your attorney will need to know the estimated cost of repairs.&nbsp; It is best if you can provide a written estimate from a qualified individual to your attorney to file with the motion.&nbsp; If the property is a total lose (i.e. a vehicle that you are not keeping) your attorney will need to know how you intend to spend the money received.&nbsp; Perhaps you need to replace your vehicle.&nbsp; Again, it is best to provide written figures for how you will spend the money.&nbsp; If you would like to purchase a new car with a loan your attorney will also need to submit a <a title="Motion to Incur Debt" href="http://www.lickerlawfirm.com/blog/can-i-buy-a-new-car-while-in-chapter-13-bankruptcy.cfm">motion to incur debt</a>. <br />&nbsp;<br />Please keep in mind that this process will take time.&nbsp; The motion will be submitted and it will be at least 21 days before a decision is made. From there your attorney will have to submit an order and the judge will need to sign the motion. <br />&nbsp;<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.</p>

 Myths and Truths About Chapter 7 Bankruptcy, Part IV Myth:  A debtor can dismiss a Chapter 7 bankruptcy if the Trustee finds assets.Truth:  In a Chapter 7 bankruptcy, it is not possible to voluntarily dismiss your case if the Trustee finds assets.  Generally, a debtor can voluntarily dismiss their case before discharge if they change their mind about filing the bankruptcy; however, this is not the case if the Trustee has found assets.  When a bankruptcy is filed, the debtor has an obligation to list any property they have at the time of the filing and the value of said property, as well as any pending insurance claims, inheritance, and personal injury claims, etc.  If the Trustee determines that the personal or real property has a higher value than the debtor originally assessed or if the Trustee finds assets that were not listed in the bankruptcy petition, the Trustee can seize the assets if they are not exempt.  In order to prevent this from happening, many debtors request to voluntarily dismiss their case without discharge so they may retain their assets.  This is not a possibility.  If a Trustee finds unexempt assets in a Chapter 7 case, debtors are unable to dismiss their case voluntarily.  That is why it is so important for debtors to accurately disclose their property and assets (present and future) to their attorney and on their bankruptcy petition before filing. Myth:  If a debtor does not list something on the bankruptcy petition, the Trustee will not find out.Truth:  It is essential for debtors to disclose all income, assets, and property, as well as the accurate value, on their bankruptcy petition and to disclose this information to their attorney.  It is also important for debtors to list any transfers, money paid to family members or friends, payments to creditors, etc.  The trustee completes their own investigation into the debtor's petition.  They can check what property the debtor has and the value of the property.  They can also find out about transfers of property and the recipients of transferred property.  Trustees can require an appraisal of real or personal property if they believe the value listed is too low.  They sometimes even wish to view the property personally.  They can also look at bank accounts to determine if money was taken out or given to someone else or if income was earned but not reported.  The Trustee will ask debtors questions under penalty of perjury.  For this reason, it is essential to disclose fair, honest, and accurate information on the bankruptcy petition and schedules. If you have any questions, please contact a St. Louis or St. Charles bankruptcy attorney.