Many individuals filing for bankruptcy experience various types of collections efforts prior to filing.&nbsp; These collections efforts can include anything from harassing phone calls and letters to law suits and even garnishment.&nbsp; If you, or someone you know, is currently receiving phone calls or other collections efforts you should contact an attorney immediately.&nbsp;<br />Creditors can make certain efforts to collect debts, however, some types of conduct are illegal and the debtor may be able to recover monetary damages.&nbsp; Even if your situation does not rise to the level of damages, collections efforts can be frustrating, embarrassing, and even costly for a debtor.&nbsp;<br />Once you choose to retain an attorney you can inform your creditors that you are represented and provide your attorney's name and contact information to the creditor.&nbsp; The attorney can then confirm representation and your creditor may stop contacting you.&nbsp; However, it is important to know that your creditor is not legally required to stop contacting you until you actually file your bankruptcy petition with the court.&nbsp;<br />Once your case is filed your creditors are not legally permitted to contact you or try to collect the debt from you.&nbsp; If your creditors continue to contact you please inform your attorney.&nbsp;<br />There is an exception to this general rule that creditors may not collect debts after filing.&nbsp; If you currently have a bank account with an institution that is also listed as an unsecured creditor (i.e. you have a debit card and a credit card with the same bank), the creditor can take the funds out of your bank account until the debt is satisfied in full.&nbsp; When filling out your debts&nbsp; you should check to see if you owe any money to your bank for anything: including, but not limited to, credit cards, overdraft fees, and/or personal loans.&nbsp; If you do you should inform your attorney who can provide advice accordingly.<br />While generally we are looking for unsecured debts, there are a handful of financial institutions that will block use of ATM or debit cards if you hold a secured debt (for example a car loan or home loan) with the institution pending a <a title="Reaffirmation Agreements" href="http://www.lickerlawfirm.com/faqs/what-is-a-reaffirmation-agreement.cfm">reaffirmation agreement</a>.&nbsp; You should still be able to access your funds from a bank branch, but your debit card may not work.&nbsp; This is not the policy of every institution, but you may want to check with your financial institution prior to filing if the situation applies to you.&nbsp;&nbsp;<br />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!<br />

  Debt is not uncommon by any means in America.  The average American has more than $10,000 in credit card debt.  And credit card debt is one of the leading causes of bankruptcy filings.  So how did this happen?  Below are the habits most credit counselors site as the leading causes of debt, and therefore [...]

The trustee is the person appointed to administer your case.  In general, the trustee seeks to make sure that your creditors are protected, and that everything goes according to the laws of the Bankruptcy Code.  But how should you treat your creditor, and why should you avoid irritating him or her? Trustees have some discretion, [...]

Often, people are aware that filing for bankruptcy can have an effect on their home or car, or even their jewelry.  But few people think about the impact a bankruptcy filing could have on their family pets or livestock.  What happens to animals during a bankruptcy? Fortunately, most people’s household pets are exempt under state [...]

    Many people in financial trouble do their best to scrape by until its too late.  Sometimes, this involves working extra jobs, making late payments, or even selling some of their personal belongings.  Whether this is the right thing to do will depend on your particular situation, but sometimes such activity can have a [...]

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 />