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 />

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.

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?”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.You are signing all of your documents under penalty of perjury that they are true and correct.The exemptions available to protect your property change based on certain informationTrustee can liquidate property that is not protected under the bankruptcyIn 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! 

What happens if no proof of claim is filed by my creditor(s)?The answer to this greatly depends on two thingsAre you in a Chapter 7 or a Chapter 13?; andIs 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. 

Myths and Truths About Chapter 7 Bankruptcy:  Part I 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. 

What if I do not have paystubs and/or copies of my taxes?The trustee of your bankruptcy needs several things:Past 60 days of paystubsMost recently filed state and federal taxesBank statement from the date of filingWhat 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.

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.

Here at Shenwick & Associates, many clients come to us looking to wipe out their debts, usually through bankruptcy or a workout (but we also represent creditors).  While the cancellation of debts is desirable, the problem is that the IRS considers the cancellation of debt to be gross income under § 108 of the Internal Revenue Code.  However, there are exceptions to inclusion and exclusions to cancellation of debt (COD) income:Exceptions to inclusion from gross income are:Amounts specifically excluded from income by law, such as gifts or bequests (personal property received upon the death of the donor).Cancellation of certain qualified student loans. Certain student loans provide that all or part of the debt incurred to attend a qualified educational institution will be canceled if the person who received the loan works for a certain period of time in certain professions for any of a broad class of employers.  If a student loan is canceled as the result of this type of provision, the cancellation of this debt is not included in the recipient’s gross income.  If a taxpayer uses the cash method of accounting rather than the accrual method, the taxpayer does not realize cancellation of debt income if the expense would have otherwise been deductible.A qualified purchase price reduction given by a seller.  If debt you owe the seller for the purchase of property is reduced by the seller at a time when you are not insolvent and the reduction does not occur as the result of a bankruptcy, the reduction does not result in cancellation of debt income.  However, you must reduce your tax basis in the property by the amount of the reduction of your debt to the seller. Exclusions from gross income are:Cancellation of qualified principal residence indebtedness. Qualified principal residence indebtedness is any mortgage you took out to buy, build, or substantially improve your main home. It also must be secured by your main home. Qualified principal residence indebtedness also includes any debt secured by your main home that you used to refinance a mortgage you took out to buy, build, or substantially improve your main home, but only up to the amount of the old mortgage principal just before the refinancing.  The exclusion for qualified principal residence indebtedness provides canceled debt tax relief for many home owners involved in the mortgage foreclosure crisis. The exclusion allows taxpayers to exclude up to $2,000,000 ($1,000,000 if married filing separately) of qualified principal residence indebtedness.Debt cancelled in a bankruptcy case.Debt canceled during insolvency (which is the extent that the total of all of your liabilities was more than the fair market value of all of your assets immediately before the cancellation.Cancellation of qualified farm indebtedness.Cancellation of qualified real property business indebtedness, which is debt that (a) was incurred or assumed in connection with real property used in a trade or business; (b) secured by that real property; and (c) was incurred or assumed before 1993, or after 1992, if the debt is either (i) qualified acquisition indebtedness or (ii) debt incurred to refinance qualified real property business debt incurred or assumed before 1993 (but only to the extent the amount of such debt does not exceed the amount of debt being refinanced).For more information about how cancellation of debts can affect your income and taxes, please contact Jim Shenwick.