Avoiding Bankruptcy

Groce & DeArmon, P.C. Discuss Financial Mistakes That Often Lead to Bankruptcy

April 19, 2018 By Shari DeArmon

Credit lines and credit cards can be an excellent way to build credit and take advantage of perks and rewards. However, to the inexperienced, they can also lead to financial catastrophe if not properly managed. Many of the clients that Groce & DeArmon, P.C. have helped led themselves into the position where bankruptcy was the only option because of their reckless spending habits with their credit cards. Today, the financial experts at Groce & DeArmon, P.C. will discuss some common credit and financial mistakes that can lead to bankruptcy.

Opening Too Many Lines of Credit

For many people, the ideal number of lines of credit is somewhere between 2 and 5. Whether that includes loans or credit cards, juggling more than 5 monthly payments can be a headache and lead to mistakes. Having a few lines of credit is a great way to build your credit score. But opening too many lines can not only be difficult to keep track of but can also damage your score as you can be seen as a high-risk borrower.

Only Making Minimum Payments

While minimum payments can be a little easier to manage on a month-to-month basis, the longer your credit debt exists, the more you will accrue interest. Oftentimes, only paying the minimum will impact the interest instead of reducing the balance. Over time you can end up paying multiple monthly payments without actually reducing the amount you owe. Paying more than the minimum can help you quickly lower the balance and avoid excessive interest accumulation.

Spending to Their Credit Limit

Just because your credit card may have a $5,000 dollar limit does not mean you should spend up to that amount. In fact, you really should not even approach that amount. Keeping your debt to around 20% of your limit will improve your credit score and prevent your debt from spiraling out of control.

Making Large Purchases Before They Are Ready

Probably the number one reason people find themselves in dire financial straits is from making large purchases before they are financially stable. Purchasing a home before you are in a position to afford it is a quick way to find yourself drowning in debt. Ensure that you have a stable income and enough of an emergency fund to get yourself out of trouble before committing to large purchases, and you will be less likely to find yourself in debt.

Think Bankruptcy is Your Only Option? Contact Groce & DeArmon, P.C. Today

If you find that you have accumulated more debt than you can manage, Groce & DeArmon, P.C. offer free consultations. Our consultations will examine the state of your finances and help you decide if bankruptcy is the best option to help you turn things around. Groce & DeArmon, P.C. have a skilled and experienced staff ready to assist you with your financial crisis. Contact us today at 417-862-3706 or toll-free at 1-800-640-3706.

Chapter 7 Bankruptcy: How to Keep Your Home

April 16, 2018 By Shari DeArmon

Just because you may need to file for Chapter 7 bankruptcy does not necessarily mean you need to face foreclosure on your home. You can use a chapter 7 bankruptcy to save your house if you are current on your mortgage payments when you file, or if your equity in your home is adequately protected by exemption laws available in your state. If you are unable to get current on your mortgage payments, it may be a better idea to file a Chapter 13 bankruptcy which will allow you to spread out your missed payment over several years.

Staying Current on Your Mortgage Payments

Suppose you have mortgage payments that you are worried about falling behind on. Maybe you’re in a higher interest rate period, you’ve reached the principle cap on an interest-only loan, or you have lost some hours at your job. In cases like these, a Chapter 7 bankruptcy could be a big help. Except for a few specific debt categories, such as student loans, back taxes, or child support and alimony, you can eliminate unsecured debt in a very short matter of time. Debts like credit cards, personal loans, and medical debts can be erased, allowing you to catch up on your mortgage payments.

Potential Risk of Filing Chapter 7 Bankruptcy

Once you have filed, you may not be able to back out of your bankruptcy case. If it is found that your house has too much equity, you likely will not be able to back out and dismiss your case. The ability to dismiss a case is based on the interests of your creditors. If your creditors would receive a distribution based on the sale of your house, the sale of the house will likely go forward. If your home is sold, you will receive the amount that you are entitled to exempt (under the homestead exemption, which can vary based on your the state you live in). Figuring out the exact amount of your homestead exemption is an important step in filing a Chapter 7 bankruptcy, and speaking with a bankruptcy lawyer at Groce & DeArmon, P.C. can help you to learn exactly what you risk when filing.

Related Post: What is Bankruptcy Protection?

Contact Groce & DeArmon, P.C. for a Free Consultation

At Groce & DeArmon, P.C. our team of bankruptcy attorneys is ready and willing to help you decide if bankruptcy is the right move for you. We have an experienced team that will work with you to wipe the slate clean and get a fresh start on life. Contact us today at 417-862-3706 or 1-800-640-3706.

Groce & DeArmon, P.C.: Things to Know About Bankruptcy in 2018

February 26, 2018 By Shari DeArmon

It’s 2018 now, and last year has come to a close. Maybe it was a particularly difficult year for you financially and you’re already struggling to see how you’ll make it through 2018. The good news is, bankruptcy is still an option in 2018 and the law firm of Groce & DeArmon can help.

Bankruptcy Will Continue to Happen

Despite the hopes and goals for the new year, many individuals and corporations will file for bankruptcy protection in 2018. According to an analysis by S&P Global Market Intelligence, several companies will most likely default within this next year, including Sears, Vince, Bebe, Stein Mart, and Destination Maternity.1 Individuals are no exception, and many families may follow suit in 2018.

Becoming Debt-Free in 2018 is Possible

If you are already overwhelmed by debt this year, bankruptcy protection may be the best choice for you. Most unsecured debt that is not tied to collateral can be eliminated by filing for bankruptcy protection. When you file for bankruptcy, creditors must immediately stop contacting you and foreclosures are temporarily paused.

It is important, however, to note that bankruptcy protection will not eliminate unsecured debt like some taxes and child support. The legal team at Groce & DeArmon will make sure you understand which types of debt are secured and unsecured, and what applies to you.

How Filing for Bankruptcy Protection Affects You in the Long Run

Groce & DeArmon can help you eliminate your debt in 2018 and determine which type of bankruptcy protection is right for you. Our experienced bankruptcy lawyers will explain the various types of bankruptcy you may choose to file, and most importantly, make sure you understand how filing for bankruptcy may affect you in the future.

For example, a Chapter 13 bankruptcy stays on your credit report for seven years, and a Chapter 7 bankruptcy can remain on your credit report for up to 10 years. Additionally, it will be difficult to get approved for loans and credit immediately following your bankruptcy and even if and when you can get them, your interest rate will most likely be extremely high. Getting a new mortgage will also most likely not be possible within the first five to seven years after a bankruptcy.

Contact Groce & DeArmon Today

At Groce & DeArmon, we’ll make sure you understand the implications of filing for bankruptcy protection before you make the decision to do so. Our legal aid team is well-versed in the intricacies of filing, and we will provide trustworthy legal counsel throughout your entire bankruptcy experience if you decide that is it right for you.

Call Groce & DeArmon to speak with a legal representative today or to set up a free consultation.

Do’s and Don’t in Seeking Legal Assistance

February 21, 2018 By Shari DeArmon

When seeking legal assistance in regards to bankruptcy protection, it’s vital that you remain vigilant in your search for a high-quality lawyer. If you’ve never had to search for a bankruptcy lawyer or any type of legal aid before, it’s understandable that you may not know what to do (and what not to do). Here is a brief guide of do’s and don’ts when seeking legal aid for bankruptcy protection.

The Do’s of Seeking Legal Assistance for Bankruptcy

Do your research. Investigate any legal aid or law firm online before scheduling a consultation. Visit their website and other websites that review lawyers to get honest feedback.
Ask family and friends for recommendations. Chances are, they can recommend someone who is trustworthy.
Talk to the law firm about costs upfront to determine how much you will pay for legal aid. Make sure to ask about the option of paying in installments if you need it.
Talk to the bankruptcy lawyer. If he or she does not answer your questions in ways you can thoroughly understand, keep stepping. Your lawyer should be able to explain things in a clear way that you can understand.
Ask the bankruptcy lawyer to explain the different types of bankruptcy protection options available to you.

The Don’ts of Seeking Legal Assistance for Bankruptcy

Don’t let any legal aid pressure you into filing bankruptcy. You may have other forms of debt relief available.
Don’t hide things or lie to your bankruptcy lawyer. They are not going to judge you, but they do need the whole truth to be able to provide the best legal aid possible.
Don’t hire a bankruptcy attorney simply because they are the cheapest option. This could backfire quickly (you get what you pay for!).

If you’re searching for legal aid in regards to personal bankruptcy protection, we understand that you may feel overwhelmed, frustrated, and distressed. Look no further than Groce & DeArmon. Our law firm provides friendly, experienced assistance for individuals seeking debt relief options. We are not going to pressure you into filing for bankruptcy. Instead, we will present you with all your viable options, make sure you understand the repercussions of each, and help you make an informed decision that you can be happy with.

It’s not too late to dig yourself out of that pit of debt. Contact Groce & DeArmon today to learn more about our bankruptcy protection. And experience the benefits of having a qualified bankruptcy lawyer on your side.

Groce & DeArmon, P.C.: Common Reasons for Bankruptcy Dismissal

December 15, 2017 By Shari DeArmon

Some people forget that bankruptcy is not as simple as filling out a slip of paper and handing it over to the court. It is, in fact, possible for your bankruptcy filing to be declined or “dismissed.” There are a number of reasons that bankruptcy cases can be dismissed, and many of them are easily avoidable when you give the proper attention to your paperwork or seek the help of a bankruptcy lawyer from Groce & DeArmon.

Other issues can arise from dismissal, however, if the court suspects you of foul play or fraudulent behavior. In this case, you are considered “dismissed with prejudice,” meaning you will have to take some action to protect yourself or prove that you were not fraudulent with your bankruptcy filing.

But whether you’ve filed already and been dismissed, or you are about to file and want to do it properly, you will want the help of a bankruptcy attorney. With over 13 years of experience helping the southwest Missouri area through bankruptcy proceedings, Groce & DeArmon, P.C. is prepared to help you as well. Read on as we discuss some common reasons for dismissal and what you can do about it.

First, let’s learn about what bankruptcy can do. Read on in a related post from Groce & DeArmon: What Can Bankruptcy Do? Groce & DeArmon Explains

You Fail the Means Test

As we have discussed in previous blogs, the means test is something all persons filing for Chapter 7 bankruptcy must take. This test assesses your income in order to determine your eligibility for clearing your debt. If you do not meet its income requirement, then your bankruptcy filing will be dismissed. For more information on how the means test works, you can check out our blogs or set up a free consultation with Groce & DeArmon, P.C. to learn more.

You Fail to Attend Your Meeting of Creditors

The meeting of creditors is a hearing that all people filing for bankruptcy must attend. At this hearing, where you will be under oath, your creditors and trustee are allowed to ask you questions about your finances and your bankruptcy paperwork. If you miss this hearing, it is likely that your file for bankruptcy will be dismissed.

You Fail to Complete Your Paperwork

The required paperwork and forms for filing bankruptcy can be quite detailed, and some people will fail to complete them. They may not be comfortable sharing all of their financial information, they may mistakenly leave the paperwork blank, or they may simply neglect to fill it out. In these cases, improperly filled out paperwork will prevent the court from reasonably considering your situation. They will likely dismiss your bankruptcy claim.

Let Groce & DeArmon, P.C. Help You File or Re-File

Assuming that you have been dismissed “without prejudice,” then you are able to re-file for bankruptcy. This will cause some issues with the automatic stay that is issued when you file, but a bankruptcy lawyer from Groce & DeArmon, P.C. can help you parse out those details.

If you are thinking of filing for bankruptcy, or you’re having to re-file after a dismissal, then give us a call today. To set up your free consultation, call 1-800-640-3706.

A Bankruptcy Attorney Discusses Involuntary Bankruptcy

November 15, 2017 By Shari DeArmon

Involuntary bankruptcy cases are rare, but they are an important aspect of bankruptcy law. Unlike most bankruptcy cases, involuntary bankruptcy is filed by the creditor, not the debtor, making it a powerful tool to use in court. To give you a better understanding of how involuntary bankruptcy works, a bankruptcy attorney at Groce & DeArmon explains the basics.

The Purpose of Involuntary Bankruptcy

Creditors usually enact involuntary bankruptcy when a debtor is not paying their debts but has the assets to make a payment. Basically, the debtor has the ability to pay but is failing to do so – or simply refuses. By enacting involuntary bankruptcy, the creditor forces the debtor to make their payments, allowing the creditor to recoup any lost assets.

Typically, involuntary bankruptcy cases are filed against businesses, not individuals. This is because businesses have more assets than individual borrowers, giving creditors a greater chance of recouping their money. Individual borrowers, on the other hand, have fewer assets so forcing them into bankruptcy would be ineffective for the creditor, not to mention dangerous for the borrower. Although involuntary bankruptcy cases against individuals are rare, they still occur, especially when the borrower is extremely wealthy. If a creditor files an involuntary bankruptcy case against you or your business, contact a bankruptcy attorney immediately.

The Involuntary Bankruptcy Process

The involuntary bankruptcy process starts with one or more creditors filing an involuntary bankruptcy petition at the bankruptcy court. Once the creditors file a petition, the debtor has a set amount of time to respond. During this time, the debtor should seek legal counsel from a bankruptcy attorney to ensure they can fight their case in court. Once the debtor responds, the bankruptcy court will hold a hearing. If the judge believes that the creditors acted in good faith and the debtor has failed to make their payments, the judge will proceed with the bankruptcy. However, if the judge finds the case in favor of the debtor, it will be dismissed and the creditor may have to pay for the debtor’s legal fees.

Contact a Bankruptcy Attorney

Involuntary bankruptcy is a complicated and highly-specialized area of law, making it difficult to fight on your own. If a creditor files an involuntary bankruptcy case against you or your business, it is vital that you consult a bankruptcy attorney. Talking with a bankruptcy attorney ensures that you have the greatest chance of winning your case and protecting your assets. To speak with an experienced bankruptcy attorney, contact Groce & DeArmon today.

Avoiding the Need for Chapter 7 Bankruptcy

September 23, 2017 By Shari DeArmon

There are many reasons why a person may be battling debt. Perhaps they lost their job and have not had a steady income for a significant period of time. Or maybe they went through extensive medical treatment and have been left with a pretty large hole in their bank account. No matter how a person ended up in the situation he or she is in, there is always a way out. For some people, filing for bankruptcy is the most feasible option and can help them get a fresh start. For others, it may be best to avoid the need for bankruptcy. At Groce & DeArmon, we want our clients to take the path that is best for them, which is why we decided to share some tips for avoiding the need for Chapter 7 bankruptcy.

Set a Budget

Whether you’re in debt or not, you’ve probably heard someone suggest the need for a budget. This is among the most fundamental aspects when learning proper money management. This can be especially important when your money supply is scarce and you have multiple overdue obligations, as you will need to find a way to balance your finances so you can satisfy all your burdens. Keeping up with a tight budget can alleviate the need for filing Chapter 7 bankruptcy.

Liquify Assets

What better way to make quick money than selling some of your large, rarely used items? This is one of the primary techniques used to take care of your debt when you file for Chapter 7 bankruptcy, so you would just be carrying out the function under your own terms. Selling non-necessities is highly suggested when you are in a tight situation to quickly take care of some overdue expenses.

Seek Assistance from Loved Ones

Chances are, you are not going to be able to take out a loan when you are in debt. However, that doesn’t mean you can’t borrow money from friends and family if you feel comfortable enough. Clearly explaining your situation can go a long way in getting the help you need and avoiding the need for Chapter 7 bankruptcy.

Get Rid of the Credit Cards

One of the easiest ways to keep building your debt is by relying on credit to get you out of urgent situations. Having a credit card is a powerful tool that should not be used too freely. If you are in a situation where you have already accumulated an array of overdue expenses, then it is best to get rid of your means of credit if you wish to avoid Chapter 7 bankruptcy.

Contact Groce & DeArmon, P.C. for More About Chapter 7 Bankruptcy

In the grand scheme of things, your ability to avoid bankruptcy depends largely on staying committed to a budget and finding alternative solutions for making money. If you are unable to carry out these requirements, then choosing Chapter 7 bankruptcy may be the best option for you. For more information, contact our bankruptcy law firm at 417-862-3706.

Advice from a Bankruptcy Attorney on Repayments

August 24, 2017 By Shari DeArmon

If you’re faced with bankruptcy, you have likely become overwhelmed by your debts. While the purpose of bankruptcy is somewhat to “wipe the slate clean” and allow you to better manage your debts, it can still be hard to know where to begin. The bankruptcy attorneys and lawyers at Groce & DeArmon, P.C. have experience helping countless people successfully navigate the bankruptcy process. Our team is here to offer some advice on what you should prioritize before filing, or to what to avoid altogether.

The Essentials

Falling behind on mortgage payments for your house is one of the quickest ways to get into some serious debt, not to mention potentially losing the roof that you and your family have of your heads. The same goes for rent, where the risk is potentially even greater as a landlord or rental company has more power to evict you immediately than a bank does to foreclose, which could take a few months.

Along with rent or mortgage payments, you also need to prioritize keeping up with your utilities. Power and water are especially important, but these days a reliable internet connection is practically an essential, too.

Keeping car payments up to date should be next on your list, as most of us rely on having a car to get to or from work or important appointments. Falling behind on car payments increases the risk of your car being repossessed, and a bankruptcy attorney would advise you to make sure you stay up to date.

Any other legally obligated debts need to be prioritized, as there can be serious consequence for falling behind.

Paying Off Higher Interest

There are other debts that can be given lower priority than others. Typically student loans, medical bills, credit debts on household items will be more lenient, as long as you are willing to be honest, communicative and cooperative with rearranging how payments are made.

It is important, however, that you work with anyone you owe money to, no matter what kind of credit it is. Being uncooperative or belligerent with debtors makes it far less likely for them to make things easier for you.

Avoid Payday Loans

Finally, any good bankruptcy attorney or lawyer would tell you to steer clear of payday loans. As tempting as it might be to take out a quicker loan like this to try and alleviate debt, payday loans are notorious for massive interest rates and often shady practices. Using payday loans to pay down debt is likely to be a lot more trouble than it’s worth.

Contact a Qualified Bankruptcy Attorney

As with our previous blog entries discussing the process of filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy, this entry is just intended as general advice. If you need specific guidance and help, contact a bankruptcy attorney or bankruptcy lawyer at Groce & DeArmon, P.C. for a free consultation. Our law firm has the experience and understanding that you need, and your bankruptcy attorney will work with you to make the process as simple as possible.

A Bankruptcy Lawyer on Filing Mistakes to Avoid

August 8, 2017 By Shari DeArmon

Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can be a long and complex process. Knowing what to do is important, but it is just as important to know some specifics to avoid. At Groce & DeArmon, P.C., our team of experienced bankruptcy lawyers can help guide you through the process, and make sure you do it right. Our bankruptcy lawyers offer some advice on things to avoid doing to delay or damage your bankruptcy filing.

Using Your Credit Card

Although it may not apply to everything bought on credit, debts of over $600 owed to a single creditor within 90 days of filing will be considered non-dischargeable, meaning they will not be covered by your bankruptcy.

It seems obvious, but you might be surprised at how many people will continue using credit after deciding they need to file for bankruptcy – even if they’re in the process of doing so. By doing this, you are essentially setting up more debt to be waiting for you once your existing debts are discharged.

Not Finishing Your Credit Counseling

Credit counseling is an extremely important part of filing bankruptcy, and if you fail to complete it you will not get your bankruptcy case approved. Credit counseling is important not just because your filing hinges on it, but because it is there to help you. While the bankruptcy lawyers at Groce & DeArmon, P.C. are not here to judge, it is vital you remember how you got to a point where you had to file in the first place.

Credit counseling will help you develop a budget, help you understand your debts and even offer free educational material.

Not Appearing In Court

It should be a given that you would plan to appear for any court proceedings related to debts in a bankruptcy filing case but, once again, you might be surprised by the number of people who shirk this responsibility. If you have a court date related to your case, filing bankruptcy does not mean you can now skip it – you still must appear.

Not Being Honest With Your Bankruptcy Lawyer

If you have had to seek legal counsel to help with your debt, you need to honest about those debts. There is little reason for consulting with a bankruptcy attorney, lawyer, or any legal professional if you intend to avoid disclosing everything candidly. Your lawyer is there to help, but they will not be able to without all the facts – both good and bad.

Bankruptcy Lawyers and Getting the Process Right

These are just a few general tips for avoiding mistakes when filing bankruptcy. When it comes to getting real guidance, the bankruptcy lawyers and attorneys at Groce & DeArmon, P.C., can make sure you avoid these mistakes. To start your bankruptcy filing now, contact our law firm today for a free consultation.

Bankruptcy Terms from Groce & DeArmon, P.C.

July 20, 2017 By Shari DeArmon

Like all forms of law, bankruptcy has its own terms. Unless you are a bankruptcy lawyer, bankruptcy terminology may sound like a foreign language. At Groce & DeArmon, we don’t want you to confuse you or impress you with our terminology. When you walk through the doors of the Groce & DeArmon, P.C. law firm, we want you to feel comfortable and ready for success. For this reason, the Groce & DeArmon, P.C. team of bankruptcy lawyers have come up with a list of the most important bankruptcy terms that you will want to know before stepping into our office.

Important Bankruptcy Terms

Automatic Stay
- A court order that stops creditors from foreclosing on your home, repossessing your car, or garnishing your wages once you have filed for bankruptcy
Creditor
- The person or business to whom the person filing bankruptcy with Groce & DeArmon, P.C. owes money
Credit Counseling
- A session on managing debt provided by a counseling agency that all debtors must attend before filing bankruptcy
Debtor
- The person owing money and wishing to file bankruptcy
Equity
- The monetary value of what a debtor owns in a property after subtracting loans and other aspects of the creditor’s stake in the property
Exemption
- Any assets that the Bankruptcy Code allows a debtor to keep
Lien
- The right a creditor has to repossess property from a creditor until that creditor can pay his or her debt
Liquidation
- The process the creditor takes to sell a debtor’s property to receive owed money
Plan
- A detailed schedule and description of the debtor’s plan of action to pay off his or her debts
Preferential Debt Payment
- A payment made within 90 days of the debtor filing bankruptcy that gives a creditor a larger payment than designated by Chapter 7 bankruptcy
Secured Debt
- Any debt associated with property that a creditor can repossess and sell to make up for back payment
Statement of Intention
- A statement all debtor’s filing Chapter 7 bankruptcy must make entailing how the debtor will deal with secured debt
Unsecured Debt
- Any debt without a property attached that a creditor could repossess

File Bankruptcy with Groce & DeArmon, P.C.

Filing bankruptcy can bring you peace during a troubling time. If you find yourself suffocating under too much debt, you can always find help from a bankruptcy lawyer at Groce & DeArmon. We will advise you and guide you toward either Chapter 7 bankruptcy or Chapter 13 bankruptcy, whichever works best for your situation. Contact Groce & DeArmon, P.C. today for bankruptcy advice.

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