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Ask a St. Louis Bankruptcy Lawyer: What to Expect During the Bankruptcy Process
Andrew Smith • January 17, 2023
Many people who are considering bankruptcy are confused or even anxious about what the process entails. Thankfully, a St. Louis bankruptcy lawyer can guide you through the process. The first thing to do would be to find out if you are eligible to file for Chapter 7 or 13.
If you are truly considering filing Chapter 7 or 13, then you need to start looking at which route to take. Once you know that bankruptcy will be an option, you need to complete a pre-filing financial management class. That being said, here is a list of approved pre-bankruptcy counseling services.
Next, a client will take what is called a “means test”. According to Investopedia, a means test is used to determine whether you qualify for a Chapter 7 bankruptcy based on your income. The means test averages your past six months of income. The means test also plays a roll in a potential Chapter 13 bankruptcy as well.
There are a few exceptions of income that is not included in the means test. For example, if you receive VA disability benefits or receive social security benefits, this would not be included in the means test. The amount of consumer debt you have also determines if you have to take this test. For example, if the majority of your debt is non-consumer debt (ie- business debt), then the means test is not necessary.
Also, if you are living beneath the Missouri Median Income level, then you won’t have to take the test. To determine this, take your monthly wages over the past six months and average them. Then, count how many people are in your household, and refer to this chart under “Missouri Median Income” to see your numbers.
Next, your forms will need to be submitted to the courts, which I will take care of as your St. Louis bankruptcy lawyer. You’ll then be assigned a trustee, and shortly after that there will be a meeting with your creditors where you’ll be asked about the state of your finances as well as the information you put on your court forms.
Contact Your Trusted St. Louis Bankruptcy Lawyer
My goal is to help to make your financial future as bright as can be, and the first step is to contact me here at my offices. You can do so easily by calling me directly at AKS Law by dialing 314-740-2989.
There’s no need to come into this process with the attitude of being defeated because you will be victorious in your journey with the help of your experienced St. Louis bankruptcy lawyer. But, the first thing you have to do, and I can’t stress this enough, is to stop listening to and believing all the false information about filing for Chapter 7 or 13 and start believing in the positive future that will be rendered by finally committing to paying off your past debts! Some Popular False Myths About Bankruptcy The last thing you should do is listen to what you hear from random people about how bankruptcy works because the fact of the matter is the situation is not going to be the same from individual to individual. Why? Well, for one thing, some people are much deeper in debt than others! For example, one of the myths I hear all the time is that after a person files for bankruptcy, they won’t ever be able to take out a loan again. As your St. Louis bankruptcy lawyer, I can tell you that this is absolutely not true and that it is quite the opposite for many people who are currently in your exact same situation. Untrue myths like this about bankruptcy keep so many folks from filing every year. It’s sad because when they listen to the well-circulated lies about Chapters 7 and 13, a person will many times remain in the same dreary financial situation for many more months or even years, all because of listening to fictional information. But, the written statement from the United States Federal Reserve System is clear, and most people do get some type of credit offer within a year and a half after filing for bankruptcy! You have to remember that you are doing something responsible for a change to fix your financial future. So, please, don’t let what you hear about bankruptcy when you are out and about in your neighborhood change your mind about moving forward with it. Contact Your St. Louis Bankruptcy Lawyer for the Facts about Bankruptcy It’s important to remember that you are looking at your situation from your perspective. And yes, I know that it’s really heavy on you from that viewpoint. But, when you begin to see how your financial life is going to be changing just a short while from now, you’ll laugh when you hear the lies about bankruptcy again because you’ll now know the truth and be glad that you were brave enough to actually do something about your debt. I want to see you through to the end. I know that you are eager to see how I can assist you in effectively transforming your financial thinking and putting you on a path to better credit. You’ll be there soon enough, and the first step is to contact me directly at AKS Law by dialing 314.740.2989.
Bankruptcy Myths: Determining Fact from Fiction
It’s my job as your St. Louis bankruptcy attorney to let you know about any surprises that you may not be aware of…so here goes! Surprise #1: You Have One Court Hearing After Filing! Don’t worry. This Court hearing is not as stressful as you may think. It is called the Meeting of Creditors. In the vast majority of cases, there are no creditors appearing at this hearing. Also, since COVID-19, this hearing is completed over the phone. No need to attend in person! Surprise #2: It’s Not Going to Happen Overnight! The process of Chapter 7 bankruptcy generally lasts approximately 90 days, and with Chapter 13 it can be 36 to 60 months. However, the moment you file your case is when the automatic stay is implemented. This means the crediotrs have to stop contacting you! Surprise #3: Yes…You Have to Pay Money to File for Bankruptcy! “What?! I’m already in debt!” you may be thinking. “Why do I need to pay to go bankrupt??” As a St. Louis bankruptcy lawyer who has heard just about everything under the sun when it comes to comments like the one above, I know firsthand that most folks don’t have a lump sum ready to file. Thankfully, our office offers payment plans. While we can’t file your case until it is paid in full, we can definitely do payments. Surprise #4: Certain Debts Simply Can’t Be Eliminated! I’ll go over these more with you during your initial consultation with me. But yes, there are some things that even filing Chapter 7 or 13 can’t erase. A few of these things are certain unpaid taxes, any unpaid alimony or child support, and often times many student loans. Surprise #Five: You Often Do Not Lose Any Assets in a Bankruptcy! Under Missouri Law, individuals are granted exemptions that allow property to be protected under certain dollar amounts. It is important to talk to a St. Louis Bankruptcy Attorney to know what is and is not protected!
Absolutely! Is your house about to be sold on the court house steps due to missed payments? If you are behind on your mortgage payments and facing the threat of foreclosure, filing for bankruptcy can provide immediate relief. Having a knowledgeable St. Louis Bankruptcy Attorney is important when helping protect your home! Upon a bankruptcy filing, the automatic stay goes into effect that prevents creditors from taking any collection action against you. This filing, for instance, immediately stops the lenders right to foreclose on your home. Depending on your situation, a bankruptcy may provide you the additional time needed to catch up the payments or provide you an opportunity to catch up the arrearage through a court ordered repayment plan. Chapter 7 and Chapter 13 are the two types of bankruptcy that can be filed to stop a foreclosure sale. In a Chapter 7 bankruptcy, the automatic stay will temporarily halt the foreclosure process. This means that you will still be responsible for paying your mortgage, and the lender can resume the foreclosure process after the automatic stay is lifted. Generally, a Chapter 7 only lasts approximately 3 months. In most cases, our office will recommend that you file a Chapter 13 Bankruptcy if you are facing the threat of a foreclosure. In a Chapter 13 bankruptcy, a repayment plan can be proposed that includes your mortgage payments and pay off your mortgage debt over time. This can allow you to keep your home and avoid foreclosure. This is particularly helpful when the reason for falling behind on your mortgage was a period of unemployment. If you fall too far behind on your mortgage, they may not be willing to let you make it up with payments. When a mortgage company demands 10 payments need to be paid at once or else, well, often times it just isn’t feasible. This is where filing for bankruptcy can help. Give my office a call anytime at 314-740-2989 to discuss your options!
It can be very stressful when every day you wake up and you wonder if your car is still in the driveway. Thankfully, filing a bankruptcy can stop the threat of repossession. Knowing your rights is a big reason why you should hire a St. Louis Bankruptcy Attorney! Upon a bankruptcy filing, an automatic stay goes into effect that prevents creditors from taking any collection action against you. This includes stopping a car lender from being able to repossess your vehicle. There are two main types of bankruptcy that can provide this protection: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, you do get a temporary protection from a repossession once your case is filed. However, you would still need to continue to make your payments on your vehicle if you wish to keep it after the bankruptcy ends. If you wish to surrender your vehicle, the Chapter 7 will discharge your liability in the vehicle and you will not have to pay back any remaining balance on the vehicle. In a Chapter 13 bankruptcy, you can propose a repayment plan that includes your car payments and pay off your vehicle debt over time. This can be helpful because the Court’s interest rate may be more beneficial than the contract interest rate. Additionally, the Chapter 13 allows you to repay the vehicle up to 5 years. This can stretch out and reduce your outgoing monthly payment helping you financially. It is important to file the bankruptcy prior to the vehicle being repossessed. Once they repossess the vehicle, you are not able to get it back by filing a Chapter 7. In certain circumstances, you can get the vehicle back after filing for a Chapter 13 bankruptcy. Consulting with a St. Louis Bankruptcy Attorney can help you understand your options and determine the best course of action for your specific situation. You can call my office anytime at 314-740-2989 to discuss your options!
Garnishments are one of the most punishing ways a debt can be collected. Out of nowhere, you get your check and it looks short. You first think, hmm, was there an error by my payroll? Unfortunately, a past judgment from as long as a decade ago may be coming back and they have a right to garnishment 10 or 25 percent depending on whether you are head of household. This can be devastating. Filing for bankruptcy can provide relief by stopping a garnishment due to the automatic stay which goes into effect immediately upon filing your case. Normally, our office gets a garnishment release about 2 days after the bankruptcy is filed. . When times are tough prior to a garnishment, having a large amount of your wages taken can be disastrous. Thankfully, filing for bankruptcy case help ease that burden. There are two main types of bankruptcy that can provide this protection: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, you may be able to discharge (eliminate) the debt that is being collected through garnishment and stop the garnishment altogether. In a Chapter 13 bankruptcy, you can propose a repayment plan that includes the garnished debt and pay it off over time. This can allow you to keep more of your wages and avoid the financial strain of garnishments. When navigating how to address a garnishment it is helpful to talk to a St. Louis Bankruptcy Attorney about your options. Give our office a call anytime at 314-740-2989.
There is a lot of information out there about bankruptcy – both good and bad. If you are considering filing and have done some research, you may have come across some misconceptions about bankruptcy and what it means to file. Here are some of the more common myths and misconceptions our office hears from clients and from the general public. For more information, call our office today to speak with a bankruptcy lawyer in St. Louis. You’re Not Old Enough to File for Bankruptcy! If you are on the younger side, you may get advice from friends and family who say that you’re “too young” to file for bankruptcy and that you have time to fix your debt. Well, that may be true in some instances, but for young people who are truly buried in bills, then filing for bankruptcy can be more of a blessing than a curse. The reality is that if you’re in financial trouble and don’t see a way out, filing as soon as possible means that you’ll be back on your feet sooner. You Have to Be a Financially Irresponsible Person to File for Bankruptcy You may think that only people who are financially irresponsible file for bankruptcy, but nothing could be further from the truth. In fact, U.S. News and World Report points out many other reasons someone would file, such as if they have recently gone through a divorce, or spontaneously lost a steady job. When You File Bankruptcy, You’ll Lose Everything You Have! Bankruptcy, contrary to popular opinion, is something that is supposed to help you, not hurt you. So, although it is hard to silence the myth that when someone files bankruptcy they will lose everything they have, any St. Louis bankruptcy lawyer will tell you that it is not true. There are ample exceptions available to filers which allow filers to keep certain amounts of specific types of assets. For example, there are exemptions for work tools, vehicles, personal property, and even the equity in your home. In fact, in most cases, filers are able to claim all of their assets as exempt, meaning they will not need to give up anything they own to enjoy the benefits of bankruptcy. You Should File for Bankruptcy Without a Lawyer to Save Money You can file for bankruptcy by yourself, but that doesn’t mean you should. Filing for bankruptcy is an extremely complicated process, and even the federal courts advise against filing without a lawyer. Filing with an attorney will ensure that you obtain the best outcome to your case. Contact Your St. Louis Bankruptcy Lawyer Today If you are behind on your bills and don’t see how you can catch up, you should call an attorney as soon as you can. For more information about how filing can improve your financial future, feel free to call me today at AKS Law.
If you are having trouble keeping up with your bills, St. Louis Bankruptcy lawyers know that the bill collectors and creditors are beginning to call you more and more. You need to be able to recognize the signs in your life that bankruptcy may just be the best option for you to improve your financial life, as well as the quality of your everyday life. Some Signs Signifying Bankruptcy May Be Right for You If any of the following situations sound like your situation, then there’s a good chance that bankruptcy could be your best option moving forward. Financial Anxiety Has Entered Your Life Financial problems can affect every aspect of your life and cause significant stress. It’s never easy to have to decide between groceries and rent. Even when the bill collectors are not calling, many of our previous (and no doubt future) clients regularly find themselves with their financial situation running through their mind all day, every day. This is one of the most potent signs that bankruptcy could be probably one of the best decisions that you could ever make in your life, especially for some immediate personal peace. You are Behind on Your Monthly Bills Every now and then, people get behind on their bills. That is just a fact of life. But, sometimes folks will let things pile up on them for long periods and, before they know it, the things that they had been trying to pay on monthly have become so overwhelming that they don’t see a way out. These situations are at their worst when the monthly bill the person is behind on is something they need - like a car that they drive to work in, the rent payment for their apartment, or their mortgage payments. It’s important to remember you are not along. For example, when it comes to how many people who are behind on car payments at any given time annually, Investopedia recently reported in November of 2022 that around three and a half percent of people who have a loan for a car, truck, SUV, or other kind of personal or everyday vehicle are currently behind on their auto loan payments. You Don’t See a Way Out Perhaps the most obvious sign that you should look into bankruptcy is when you don’t see a way out of debt. For example, if you are barely able to make the interest payments on your credit card and are on a fixed income, eliminating that debt through bankruptcy may be the best course of action. An experienced lawyer can help you determine whether you have other options or if bankruptcy is right for you. Contact a St. Louis Bankruptcy Lawyer Today At AKS Law Firm, we are committed to helping people just like you obtain a fresh start through bankruptcy. We offer completely free consultations and take calls 24/7. To schedule your case evaluation with a bankruptcy lawyer in St. Louis, call our office today or contact us online.
Many people who are considering bankruptcy are confused or even anxious about what the process entails. Thankfully, a St. Louis bankruptcy lawyer can guide you through the process. The first thing to do would be to find out if you are eligible to file for Chapter 7 or 13. If you are truly considering filing Chapter 7 or 13, then you need to start looking at which route to take. Once you know that bankruptcy will be an option, you need to complete a pre-filing financial management class. That being said, here is a list of approved pre-bankruptcy counseling services. Next, a client will take what is called a “means test”. According to Investopedia , a means test is used to determine whether you qualify for a Chapter 7 bankruptcy based on your income. The means test averages your past six months of income. The means test also plays a roll in a potential Chapter 13 bankruptcy as well. There are a few exceptions of income that is not included in the means test. For example, if you receive VA disability benefits or receive social security benefits, this would not be included in the means test. The amount of consumer debt you have also determines if you have to take this test. For example, if the majority of your debt is non-consumer debt (ie- business debt), then the means test is not necessary. Also, if you are living beneath the Missouri Median Income level, then you won’t have to take the test. To determine this, take your monthly wages over the past six months and average them. Then, count how many people are in your household, and refer to this chart under “Missouri Median Income” to see your numbers. Next, your forms will need to be submitted to the courts, which I will take care of as your St. Louis bankruptcy lawyer. You’ll then be assigned a trustee, and shortly after that there will be a meeting with your creditors where you’ll be asked about the state of your finances as well as the information you put on your court forms. Contact Your Trusted St. Louis Bankruptcy Lawyer My goal is to help to make your financial future as bright as can be, and the first step is to contact me here at my offices. You can do so easily by calling me directly at AKS Law by dialing 314-740-2989.
As a St. Louis bankruptcy lawyer, I can tell you that the eventual benefits of filing for bankruptcy are often well-worth the initial sacrifices you’ll have to make. Of course, filing for bankruptcy is not for everyone, and you should always discuss your situation with an attorney before making any decisions that can affect your legal rights. Some of the most important benefits of bankruptcy are discussed in detail below. For more information or to get started, call today to speak with a lawyer. You Can Stop Collection Attempts For a long time now, you have likely been threatened by debt collectors with repossessions and other collection activities. For example, you may have a vehicle that you rely on every day that is now in danger of being taken away because you simply don’t have the means to pay your car loan. When you file for Chapter 7 or 13 bankruptcy through your St. Louis bankruptcy lawyer, an interesting thing happens. All of a sudden, you begin to notice that you aren’t calls or letters from bill collectors, and it’s because of the automatic stay . The automatic stay is “an injunction that is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtor’s property.” In other words, when you file for bankruptcy, the calls stop. You Can Avoid Wage Garnishments When all you’re trying to do is take care of the most basic needs (like rent), the last thing you need is something to happen to your wages! So many people are already living paycheck to paycheck, many to the point they feel like eviction may be in their near future. In Missouri, creditors can take up to 25% of your pay. These spontaneous, scary instances can be avoided by filing for bankruptcy, and you can give yourself much more time to take care of your debt. You Can Fix Your Credit If you can make it through the initial period of bankruptcy when your credit will be negatively affected, you will make it to the light at the end of the tunnel, which is a future of a much better credit score! By filing for bankruptcy, you are able to get the negative reporting to stop due to the discharge of the debts. This will empower you to start getting your credit back on track. You Can Finally Get Your Finances On Track When you first file for bankruptcy, yes, your credit score will be unfavorably affected. It is advised during this period of financial recovery that you stay focused, and put off thinking about making large, unimportant purchases for a while. Think of your filing as your opportunity to finally get things right for yourself financially. It’s good to envision how positively your future will be affected instead of worrying about the financial sacrifices you have to make right now. Contact Your St. Louis Bankruptcy Lawyer If you are having trouble keeping up with your debts, you should call AKS Law Firm today. Attorney Andrew Smith has been helping people throughout the St. Louis metro area obtain freedom through bankruptcy. To schedule a free case evaluation, call our office today or contact us online.
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