Paying Off Debt: Who to Pay Before Filing Bankruptcy

A big topic with bankruptcy cases is that of preference payments.  An insider preference payment is any payment made within the past year to a family member, friend or business associate.  If this type of payment was made during the past year, the Chapter 7 trustee has to recover the amount paid to the family member, friend or business associate, and share the funds with other creditors.  In a Chapter 13 case,  you have to repay to unsecured creditors at least as much as you paid during the past year to any family members, friends and/or business associates. If you are considering filing bankruptcy, you should not repay family members, friends, or business associates in advance of filing your bankruptcy.

Chapter 13: Past-Due Personal Property Taxes

If you have over-due personal property taxes for a motor vehicle, filing Chapter 13 bankruptcy lets you repay those taxes over time, for up to five years, and get a license renewal for your vehicle once you receive your Chapter 13 discharge.

 

Bankruptcy Case Waiting Period

If a you received a discharge in a Chapter 7 bankruptcy, you have to wait a minimum of eight years before you can file a new Chapter 7 case.  If you filed a prior Chapter 7 case require debt relief, a Chapter 13 case may be filed instead, and if four years have gone by since the Chapter 7 case filing,  you will not have to entirely repay creditors.  If you got a Chapter 13 discharge in a Chapter 13 bankruptcy case, then you have to wait a minimum of six years before you can file for Chapter 7. 

 

 

 

How to Reduce Car Loan Payment in Chapter 13

 “How Can I Reduce My Car Loan Payment in a Chapter 13?”

In some instances you may be able to reduce the amount you have to repay on a car loan in a Chapter 13 bankruptcy case.  As long as there is not a non-filing co-debtor on the vehicle loan, the interest rate on the car will be the rate set by the bankruptcy court, which is currently about 6%.   So for clients with high interest rates on their car loans, they will pay less than they would outside of bankruptcy.  If the vehicle loan was taken out more than two and a half years prior to the filing of the Chapter 13 bankruptcy case, only the amount of the loan up to the fair market value will need to be repaid.  If you owe quite a bit more than your car is worth and your car loan is more than two and a half years old you may experience a substantial savings.  

If you are in Jefferson County, Franklin County, St. Charles County, or anywhere near St. Louis and considering filing for Chapter 7 or Chapter 13 bankruptcy, I want you to have my FREE SPECIAL REPORT titled “Why Bankruptcy Laws Are Your Friend- Legal Lessons You Don’t Want to Learn the Hard Way”.  Just visit  www.StLouisBankruptcyAttorneyHelp.com to get your own copy sent to you right away.

 

 

 

 

 

Bankruptcy: File Jointly or Individually?

“May We File For Bankruptcy Jointly Or Individually?”

Married clients have the option to file the bankruptcy case individually or jointly with each other.  If you file individually and owe a specific debt or debts along with your spouse, he or she would still owe on the debt after you receive a bankruptcy discharge.  There are pluses and minuses for a married person filing for bankruptcy jointly, and deciding to file together or individually should be made only after studying all facets of your case with a bankruptcy lawyer. 

 

 

 

How Quickly Can I File for Bankruptcy?

When clients consult with a bankruptcy attorney, they always want to know how quickly the bankruptcy lawyer can file the their case.  In most instances, I can file your bankruptcy case the same week that you come see me.  If a foreclosure sale is pending or if you are awaiting a garnishment it is important to get the case filed right away, and my office is able to work with you to get the case filed in a prompt manner. 

 

 

 

Debt Elimination or Debt Solutions Available?

Hi, my name is Frank Ledbetter and I am a bankruptcy attorney or, if you prefer, a bankruptcy lawyer specializing in Chapter 7, Chapter 13, and debt relief primarily in the St. Louis, MO and surrounding areas. 

An important question I often get is, “What Debt Elimination or Debt Solutions Are Available?”

People considering obtaining debt relief through filing for bankruptcy are of course interested in knowing what types of debts they may get cancelled, that is, discharged, in the bankruptcy case.  The types of debt which my clients often get discharged in a bankruptcy case are unsecured credit card debts, doctor bills, hospital bills, and deficiencies on vehicle loans.  Income taxes more than three years old may also be dischargeable.  Many types of debts, however, are not dischargeable when filing Chapter 7 or Chapter 13 bankruptcy case.  The types of debts that cannot be discharged are as follows:  1) student loans, 2)  income taxes less than three years old, 3)  other types of taxes, 4)  debts incurred to pay non- dischargeable taxes, 5) fines, 6) court-ordered penalties, 7) court-ordered restitution payments, 8) child support, 9) maintenance, formerly known as alimony, 10) anything ordered in a divorce decree to be repaid, 11) debts owed to compensate for injuries cause while driving while intoxicated, 12) debts not listed in the client’s bankruptcy papers, 13) homeowners’ association fees, 14) condo owners association fees, 15) debts owed to compensate for intentional harm done to others, 16) debts incurred through fraud, 17) debts arising from breach of a fiduciary duty and 18) debts owed to compensate for money stolen from other(s).  

If you are in Jefferson County, Franklin County, St. Charles County, or anywhere near St. Louis and considering filing for Chapter 7 or Chapter 13 bankruptcy, I want you to have my FREE SPECIAL REPORT titled “Why Bankruptcy Laws Are Your Friend- Legal Lessons You Don’t Want to Learn the Hard Way”.  Just visit  www.StLouisBankruptcyAttorneyHelp.com to get your own copy sent to you right away.

 

 

 

 

File Chapter 13 to Stop Foreclosure Sale?

Hi, my name is Frank Ledbetter and I am a bankruptcy attorney or, if you prefer, a bankruptcy lawyer specializing in Chapter 7, Chapter 13, and debt relief primarily in the St. Louis, MO and surrounding areas.

A question people often ask me as a bankruptcy attorney is, “Can I File For Chapter 13 To Stop A Foreclosure Sale?”  

The answer is “Yes, filing a Chapter 13 bankruptcy case will stop your foreclosure” as long as 1)  you have not had a bankruptcy case dismissed within the last year or multiple bankruptcy cases dismissed within the last few years and 2) you have sufficient income to make a Chapter 13 plan payment which would be high enough to repay what you are behind on your mortgage loan over a period of four years. 

If you are in Jefferson County, Franklin County, St. Charles County, or anywhere near St. Louis and considering filing for Chapter 7 or Chapter 13 bankruptcy, I want you to have my FREE SPECIAL REPORT titled “Why Bankruptcy Laws Are Your Friend- Legal Lessons You Don’t Want to Learn the Hard Way”.  Just visit  www.StLouisBankruptcyAttorneyHelp.com to get your own copy sent to you right away.

Can I Discharge Taxes in a Bankruptcy Case?

Hi, my name is Frank Ledbetter and I am a bankruptcy attorney or, if you prefer, a bankruptcy lawyer specializing in Chapter 7, Chapter 13, and debt relief primarily in the St. Louis, MO and surrounding areas.

People often ask me as a bankruptcy attorney, “Can I Discharge Taxes in a Bankruptcy Case?”

Many types of taxes are not dischargeable in a bankruptcy.  However, income taxes are dischargeable in a bankruptcy case, either a Chapter 7 bankruptcy case or a Chapter 13 bankruptcy case, if 1)  the income taxes came due more than three years prior to the filing of the bankruptcy case, 2) the federal tax returns were filed more than 2 years prior to the bankruptcy case filing, 3) the state tax returns were filed more than 3 years prior to the filing of the bankruptcy case, 4) the taxes were assessed at least 240 days prior to the filing of the bankruptcy case, 5) all taxable income was listed on the tax returns, and 6) you did not recently enter into an offer in compromise with the Internal Revenue Service.

If you are in Jefferson County, Franklin County, St. Charles County, or anywhere near St. Louis and considering filing for Chapter 7 or Chapter 13 bankruptcy, I want you to have my FREE SPECIAL REPORT titled “Why Bankruptcy Laws Are Your Friend- Legal Lessons You Don’t Want to Learn the Hard Way”.  Just visit  www.StLouisBankruptcyAttorneyHelp.com to get your own copy sent to you right away. 

 

 

 

 

 

 

Will Filing Chapter 7 or 13 Bankruptcy Stop Creditor Calls?

When people find themselves in need of debt relief, they want to know when creditors will leave them alone!

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

 

It is illegal for creditors to call or write in an effort to collect a debt as soon as the creditor receives notice of the bankruptcy filing. The “automatic stay” obtained when a bankruptcy case is filed prohibits creditors from taking action to collect on debts as soon as the creditor is notified of the bankruptcy filing.  Incidentally, the automatic stay also bars creditors from proceeding with collection lawsuits as soon as the creditor learns of the bankruptcy case filing.

 

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Will Filing a Chapter 7 or 13 Bankruptcy Stop Garnishments?

When people find themselves in need of debt relief, they frequently want to know if filing for Chapter 7 or Chapter 13 will cause them to lose their car.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

Whether you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy case, a creditor must immediately stop a garnishment as soon as the creditor receives notice of the bankruptcy filing.  

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Can I Keep My Car in a Chapter 7 or Chapter 13 Bankruptcy?

When people find themselves in need of debt relief, they frequently want to know if filing for Chapter 7 or Chapter 13 will cause them to lose their car.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

You have some options when you file for a Chapter 7 or Chapter 13 bankruptcy.  In a Chapter 7 bankruptcy, if you want to keep your car you would continue to make the regular monthly payments to the car lender, whereas in a Chapter 13 bankruptcy the vehicle loan would be restructured, the interest rate in many instances reduced, and the vehicle repayment extended for up to 60 months.  

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

Chapter 7 & Chapter 13 Bankruptcy: Still Able to Get Credit?

When people find themselves in need of debt relief, they frequently want to know how bankruptcy will impact their ability to obtain credit.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

 

Declaring bankruptcy will often result in improved credit scores as early as one year after discharge, which will often increase your chances of obtaining credit help in the future. With regard to a mortgage loan, you will usually have to wait two years after obtaining a bankruptcy discharge before obtaining a mortgage loan.

If your income is good, you may be able to get a vehicle loan immediately after obtaining the discharge in a bankruptcy case. People have often told me they get credit card offers in the mail even prior to obtaining their bankruptcy discharge.

As a bankruptcy attorney, I caution my clients to be careful about debt they incur after the filing of the bankruptcy case because it will not be dischargeable in a new bankruptcy case for several years.

 

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.

 

 

 

 

 

The Difference: Chapter 7 and Chapter 13 Bankruptcy

When people find themselves in need of debt relief, they frequently want to know what the difference is between Chapter 7 bankruptcy and Chapter 13 bankruptcy options.

There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.

A Chapter 7 bankruptcy often takes 3 or 4 months to finish, while a Chapter 13 bankruptcy requires at least a minimal payment to the Chapter 13 Trustee over 3 to 5 years.  A Chapter 13 bankruptcy will usually halt a pending foreclosure sale, but a Chapter 7 bankruptcy will not prevent a foreclosure sale.  In a Chapter 13 bankruptcy assets cannot be taken from you no matter how much equity you have, although in a Chapter 7 bankruptcy, you are limited by how much equity you can have in assets you own and still keep them.  Regardless of how much income you have, you may file a Chapter 13 bankruptcy.  People in the top half in terms of income, however, may have too much income to qualify for debt relief under Chapter 7 bankruptcy.

The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.