When you file for bankruptcy, you try to control the timing of every expense and income. Your case often hinges on having only a certain amount of money available. More can cause you to lose assets or not qualify for Chapter 7 bankruptcy. But there are always things you cannot predict, such as a death [...]

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.

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.

<br />Myths and Truths About Chapter 7 Bankruptcy, Part III<br />Myth:&nbsp; 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.<br />Truth:&nbsp; All <a title="Property" href="http://en.wikipedia.org/wiki/Property">property</a>, 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.&nbsp; 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.&nbsp; This is not true.&nbsp; The trustee and bankruptcy court want to know the assets debtors have at the time of filing.&nbsp; They want to know what property the debtors have, the value of the property, and the amount still owed on the property.&nbsp; The lien holder for the property must be listed with their address so they get notice of the bankruptcy.&nbsp; 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.&nbsp; 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.<br />Myth:&nbsp; A debtor is not required to list cash they have on hand.<br />Truth:&nbsp; A debtor must list any cash they have on hand at the time of filing the bankruptcy.&nbsp; Schedule B specifically asks about cash on hand.&nbsp; If the debtor leaves that question blank, they are stating to the trustee that they do not have cash on hand.&nbsp; 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.&nbsp; This rule also applies to un-cashed checks the debtor possesses.&nbsp; 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.&nbsp; This is false.&nbsp; Any property a debtor has must be listed, including cash.&nbsp; If not reported, the debtor can be investigated.&nbsp; It is essential for a debtor to list all property and value that property honestly and fairly.&nbsp;<br />If you have any questions, please contact a <a href="http://www.lickerlawfirm.com">St. Louis or St. Charles bankruptcy attorney</a>.<br />

<br />Myths and Truths About Chapter 13 Bankruptcy, Part III<br />Myth:&nbsp; A debtor can only file a Chapter 13 <a href="http://en.wikipedia.org/wiki/Bankruptcy">bankruptcy</a> if they are trying to save a house from foreclosure or a car from repossession.<br />Truth:&nbsp; There are several reasons why a person may file a Chapter 13 bankruptcy.&nbsp; One reason is the debtor is over median.&nbsp; There is a median income that is determined for each state depending on the household size.&nbsp; 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.&nbsp; The debtor would then pay back a certain amount to their unsecured creditors based on the disposable monthly income in the means test.&nbsp;<br />A debtor may also need to file a Chapter 13 bankruptcy if they have equity in their property.&nbsp; This is referred to as the liquidation analysis.&nbsp; 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.&nbsp; 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.&nbsp; In a Chapter 7, the trustee would be able to take the car and sell it to pay $6,500 to unsecured creditors.&nbsp; The other option through a Chapter 13 is to pay the $6,500 to unsecured creditors.&nbsp; In return, the trustee will allow the debtor to retain their property and keep the equity.&nbsp; If the debtor is under median, they would pay back $6,500 to unsecured creditors, and the rest would be discharged.<br />Another reason to file a Chapter 13 bankruptcy would be if the debtor is not eligible to file a Chapter 7 bankruptcy.&nbsp; 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.&nbsp; 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.<br />As you can see, there are many reasons for debtors to file a Chapter 13 bankruptcy.&nbsp; If you would like more information about this, please contact a <a href="http://www.lickerlawfirm.com">St. Louis or St. Charles bankruptcy attorney</a>.<br />

There is a common misperception that debtors cannot purchase or sell any property while in a 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.

There is a common misperception that debtors cannot purchase or sell any property while in a <a title="Chapter 13 Bankruptcy" href="http://www.lickerlawfirm.com/library/chapter-13-bankruptcy.cfm">chapter 13</a> bankruptcy.&nbsp; That simply is not the case.&nbsp; However, you will need permission from the court to complete any purchase or sale.&nbsp;<br />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.&nbsp; Your attorney will need some information from you.&nbsp; This information will include the selling price, financing terms, the length of the agreement and so forth.&nbsp; Basically, you should provide the proposed contract terms to your attorney.&nbsp;<br />Your attorney will then prepare a motion to either sell or purchase, whatever is appropriate, and file the motion with the court.&nbsp; That motion will have to be set for a hearing a minimum of 21 days from the day of filing.&nbsp; That 21 day period allows all of your creditors and the trustee to receive notice and allows time for any objections.&nbsp; If there is an objection all may not be lost.&nbsp; It may be an objection that you and your attorney can cure.&nbsp; If the objection holds you may not be able to buy or sell the property.&nbsp;<br />If there is no objection within the 21 day time frame, a judge will likely grant your motion.&nbsp; At that point, your attorney can submit an order to the judge.&nbsp; The judge will need to sign this, and only after there is a signed order can you sell or purchase the property.<br />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.&nbsp; It is also important to know that must be able to demonstrate that you can actually afford the purchase.&nbsp;<br />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.&nbsp;<br />If you have questions about this, or would like to schedule a free consultation, contact a <a title="St. Louis Bankruptcy Attorney" href="http://www.lickerlawfirm.com">St. Louis Bankruptcy Attorney</a> today.<br />

If you are considering filing for bankruptcy and meet with an attorney he/she will likely determine whether you are under or over median income  Individuals at or below median income for their family size can file a Chapter 7.  If you are over median income you must file a 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.

If you are considering filing for bankruptcy and meet with an attorney he/she will likely determine whether you are under or over median income&nbsp; Individuals at or below median income for their family size can file a Chapter 7.&nbsp; If you are over median income you must file a <a title="Chapter 13 Bankruptcy" href="http://www.lickerlawfirm.com/blog/who-will-benefit-from-filing-chapter-13.cfm">Chapter 13 </a>Bankruptcy.<br />If you are married both your income and the income of your spouse must be included in the means test.&nbsp; 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.&nbsp; While you do have to account for your spouse's income, you also account for his/her expenses.<br />Median income is the average family income.&nbsp; 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.<br />So, who can you count?&nbsp; You count yourself, your spouse if applicable, and your minor children that live with you.&nbsp; 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.&nbsp; If you have a parent or relative living with you that is financially dependent you may count that person.&nbsp; As a general rule, if you can claim an individual as a dependent on your taxes you can probably count them.&nbsp; The big exception to this is custody arrangements that relate to taxes.&nbsp; 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.<br />If it does appear that your gross income is over median you should still speak with an attorney.&nbsp; It is very possible that some of your qualified expenses will actually put you under median, meaning that you can file for a <a title="Chapter 7 Bankruptcy" href="http://www.lickerlawfirm.com/blog/advantages-of-filing-for-chapter-7-bankruptcy.cfm">Chapter 7</a> Bankruptcy.&nbsp;<br />If you have any questions or would like to schedule an appointment for a free consultation, contact a <a title="St. Louis Bankruptcy Attorney" href="http://www.lickerlawfirm.com/practice_areas/st-louis-bankruptcy-attorney-st-charles-debt-lawyer-debt-help.cfm">St. Louis Bankruptcy Attorney </a>today.<br />

A week after the NACBA convention in San Antonio, I’ve almost caught up on practice paperwork, continuing education reporting, and sleep. Jay and I reported on the sessions we attended, and we (the editorial “we”) fixed the link to the post on lien stripping. Now’s the time for some reflection on the experience as a whole. Here’s my list of big-picture ideas and to-do’s . Need to be on top of state law Need for comprehensive and verifiable client disclosures about choices and consequences Myriad of ways to defeat preferences beyond waiting Potential in the new mortgage claim rules Stern v. Marshall may not cut as wide a swath as we feared The AG’s settlement may have real benefits for my clients if I can figure out how to access those benefits The issue of bankruptcy crimes and client failures to disclose are real, complex, and pervasive Reaffirmations are problematic, messy and need more of my attention Friends and other lawyers are almost as valuable as convention speakers as a source of learning. I need a 36 hour day How about you?  What stood out for you at NACBA if you were lucky enough to be there? I’m back to my computer, preparing for our workshop in St. Louis in June. Image courtesy of zutaten. Like This Article? You'll Love These! Bankruptcy Mastery Will Provide Live Coverage Of NACBA San Antonio Convention NACBA Live Blog: Caselaw Update “I Didn’t Know That” Gem From The Convention