Articles from St. Charles Bankruptcy Attorney

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Can't everyone do a Chapter 7 or a Chapter 13?

Submitted by Anonymous (not verified) on Fri, 09/13/2013 - 08:00

Can’t everyone do a Chapter 7 or a Chapter 13?The simple answer is no. The eligibility for a Chapter 7 is based on several things:Median Income for Household Size – The median income determines what a Debtor or Debtors can file a bankruptcy. Median income is determined by household size. The following is the median family income data for Missouri and Illinois.   Household Size   Missouri       1 $41,092       2                     $51,784       3                    $59,549      4 $72,150  Illinois$47,485$59,861$68,721$80,776  Don’t panic yet.

Do I Need to Know All of My Creditors when I meet with an attorney about the bankruptcy for the first time?

Submitted by Anonymous (not verified) on Fri, 09/13/2013 - 08:00

Do I Need to Know All of My Creditors when I meet with an attorney about the bankruptcy for the first time?No. While policies may vary firm to firm, most offices will have you complete some sort of intake sheet upon arrival. This intake sheet will give the attorney some insight into your situation and potential issues in your case.

Insider Payments

Submitted by Anonymous (not verified) on Thu, 08/29/2013 - 08:00

Insider PaymentsYou got a large chunk of money and paid the loan from your Mom or other family member and now are ready to file bankruptcy. Or you have a high balance in bank accounts prior to filing a bankruptcy so you are going to take the money out and pay back a loan to a family member right? Wrong. There is a section of the bankruptcy petition where these sorts of payments must be specifically listed. You are going to disclose them on your petition but the money is already gone anyways so nothing the trustee can do about it right?

I am not eligible for Chapter 7 yet so I will file Chapter 13 and then convert when I am eligible for Chapter 7 discharge.

Submitted by Anonymous (not verified) on Thu, 08/29/2013 - 08:00

I am not eligible for Chapter 7 yet so I will file Chapter 13 and then convert when I am eligible for Chapter 7 discharge. Unfortunately no. Discharge eligibility is determined at the time a bankruptcy case is filed. At the time of the case is filed, using the date that the case was filed, it is determined whether the debtor or debtors is/are eligible to receive a bankruptcy discharge.

Refund Anticipation Loans

Submitted by Anonymous (not verified) on Thu, 08/29/2013 - 08:00

Refund Anticipation LoansThese loans are some of the highest cost loans that exist. A borrower pays anywhere from 40% to 700% depending on the lender and loan amounts. While this seems like a great option when you are on a tight budget, it may be just the opposite. You are due $4,500 for tax refund. You want your money 4 weeks earlier that it would normally be received so you obtain a refund anticipation loan. You have just now handed over $1500 so that you can have $3,000 only a few weeks earlier!

I do not have money so how do you expect me to pay you?

Submitted by Anonymous (not verified) on Thu, 08/29/2013 - 08:00

I do not have money so how do you expect me to pay you?The easy answer is that you may not be able to afford not to pay an attorney to file a bankruptcy for you. While it often seems odd to perspective clients that there are fees involved, it honestly may be cheaper than the alternatives. Sounds crazy right? Not so. Here are scenarios where not filing a bankruptcy will cost you more money than filing bankruptcy:

    I Am Not Filing Bankruptcy on All of My Creditors

    Submitted by Anonymous (not verified) on Fri, 07/19/2013 - 08:00

    Can I leave some creditors off of my bankruptcy?No. Any creditor whom you owe a balance to must be listed on the petition. Does this mean you should go pay off all the credit cards that you want to keep?No. Even with a $0.00 balance the credit card companies will likely close your accounts once you file bankruptcy. Some creditors WILL let you keep your account but even if this is the case, you do not want to pay off any large balances right before filing for bankruptcy.

    Do I have to appear in front of a Judge for my bankruptcy?

    Submitted by Anonymous (not verified) on Fri, 07/19/2013 - 08:00

    Do I have to appear in front of a Judge for my bankruptcy? No. The Judge does oversee the bankruptcy process; however you are not required to appear in front of him. Depending on your specific case, your attorney may need to appear in front of the Judge for certain motions or objections that may arise, but you do not need to attend.So do I have to go to court at all for my bankruptcy?Yes. One time during your bankruptcy you are required to appear in front of a trustee who has been assigned to your case.

    What happens if I get behind on mortgage payments while I am in a Chapter 13?

    Submitted by Anonymous (not verified) on Fri, 07/19/2013 - 08:00

    What happens if I get behind on mortgage payments while I am in a Chapter 13?You made the decision to file a bankruptcy and decided to keep you home. You file a Chapter 13 and are making your mortgage payments and your Chapter 13 plan payments as scheduled. Something comes up and you get several months behind on the post-petition mortgage payments. Now what? Several things will happen…First is that the attorney for the mortgage company will likely contact your attorney let you know that payments are delinquent.

    What is a wage order and what are the benefits?

    Submitted by Anonymous (not verified) on Fri, 07/19/2013 - 08:00

    What is a wage order and what are the benefits?A wage order in a Chapter 13 is where a portion of your Chapter 13 plan payment is automatically deducted from your paycheck by your employer. Your employer then sends the money directly to the trustee.If you are paid bi-weekly then the monthly payment will be prorated. For example, if your Chapter 13 plan payment is $300 then $138.46 would be taken out of each paycheck.Benefits to wage order:                                       

    • Presumed current if less than 10 days late

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