Avoiding Bankruptcy

What Are the Different Chapters of Bankruptcy? A Bankruptcy Lawyer Explains

July 14, 2017 By Shari DeArmon

Aside from bankruptcy lawyers, most people don’t know much about the different chapters and types of bankruptcy. All they hear is that so-and-so filed bankruptcy or such-and-such company went bankrupt. Maybe they think visiting a bankruptcy lawyer would look shameful, but in all honesty, bankruptcy happens all the time and in many forms.

The more you know about your options, the more likely you are to find some relief from your debt. Some people think relief starts when you talk to a law firm, but informing yourself of the facts will give you the confidence you need to reach out to a bankruptcy law firm. Let a bankruptcy lawyer give you the ins and outs of all the different forms of bankruptcy.

Chapter 7 Bankruptcy

The most common form of bankruptcy for individuals, Chapter 7 bankruptcy, gives you the opportunity to completely erase your unsecured debt. Unsecured debt includes credit card debt or any other debt not attached to property. A creditor can still foreclose on your home to repay a mortgage or repossess your car to pay off the money owed on your car loan, but Chapter 7 bankruptcy is the best form of debt relief available to individuals.

Chapter 13 Bankruptcy

If Chapter 7 bankruptcy acts like a form of debt liquidation, Chapter 13 bankruptcy gives you an opportunity to pay off your debt. When filing Chapter 13, you get to keep some of your larger assets, such as your house and your car. You will form a payment plan that the court must approve. With this plan, the debtor typically pays back creditors over the course of three to five years.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy benefits businesses and individuals alike. Similarly to Chapter 13, the debtor must still pay off a portion of his or her debts. If a corporation files bankruptcy, the business must reorganize and return the business to profitability in a court-mandated period of time.

Chapter 9 Bankruptcy

Only available to municipalities, Chapter 9 bankruptcy allows cities, towns, counties, school districts, and other public districts to adjust their debts. These bankruptcies often result in these municipalities reducing their principal or interest or refinancing their loans.

Contact a Groce & DeArmon, P.C. Bankruptcy Lawyer Today

As you can see, bankruptcy lawyers help people and businesses in a few unique ways. These laws were created to help people survive and continue on after falling victim to difficult times and massive debt. If you believe you can also benefit from speaking with a bankruptcy lawyer, contact one at Groce & DeArmon, P.C. law firm today.

Groce & DeArmon, P.C. Explains the Means Test

June 29, 2017 By Shari DeArmon

If you’re considering filing for bankruptcy, you’ve probably heard of the means test. The means test is meant to determine whether or not you’re eligible for filing for Chapter 7 bankruptcy. So what factors are considered in the means test? Today Groce & DeArmon, P.C. is breaking down the means test on a surface level. At a certain point the means test computations become quite complicated, so if you need further clarification, be sure to schedule a free consultation at Groce & DeArmon.

How the Means Test Works

The first factor a means test will consider is your household income. If your monthly income is less than the median income for your state, then you automatically qualify for Chapter 7 bankruptcy. No further calculations are needed. So what if your income exceeds the monthly income? That’s where things get more complicated.

To put it simply, you have to determine what your disposable income is after expenses. To calculate this, you’ll look at how much you have left over after necessary monthly expenses. If the means test determines this amount to be enough to make payments on your debts, then you’ll fail the means test. If this happens, you may still be able to file for Chapter 13 in order to start repaying your debts.

Come to Groce & DeArmon, P.C. to Discuss Your Options

There are many online calculators that will help you determine if you’re able to pass the means test. But even if you fail, don’t give up hope. You should always consult with a bankruptcy attorney to make sure you’ve explored all your options. In fact, a bankruptcy lawyer from Groce & DeArmon, P.C. may be able to find out that you actually can pass the means test. As we said, the means test is complicated, which means it’s easy for someone to make a mistake when taking it. Also, you’ll need an attorney on your side when you’re ready to file for Chapter 7. We can help you through every step of the filing process.
Groce & DeArmon, P.C. will make sure that we find the best solution for your bankruptcy needs. Even if you fail, we can help you file for Chapter 13, which may be the best option for your situation anyway. Contact us today or view the Groce & DeArmon, P.C. website for more information. Give us a call when you’re ready to schedule your free consultation. Don’t suffer under the shadow of crushing debt any longer.

Groce & DeArmon, P.C. on Bankruptcy Stigma

May 22, 2017 By Shari DeArmon

In one of our past blogs, Groce & DeArmon, P.C. listed some of the ways to approach life after filing bankruptcy. One thing that we mentioned was the stigma of bankruptcy, and in this entry we’re going to look at that stigma by itself. Why does filing bankruptcy often come with such negative connotations? Why are so many people afraid to admit or seek help when their debt becomes too much to deal with? Groce & DeArmon’s legal aid experts share their thoughts.

Guilt, Shame, and Failure

It might sound harsh, but it is, unfortunately, true of many people who end up in a situation where they need to file bankruptcy – they feel guilty, ashamed, or that they’ve failed in some way. In our culture, being successful is, more often than not, equated with financial stability, wealth, and being able to comfortably afford not only what we need, but luxuries too. Having a good job with a healthy paycheck is often associated with having achieved what we all strive for in life.

Because of this, the idea of having little to no money, being unemployed, not owning your own home, or having overwhelming debt is associated with failure. With these assumptions so common and reinforced, it’s easy to understand why filing bankruptcy creates these feelings. In getting into a situation where you can no longer pay what you owe, according to these imaginary rules, you’ve lost.

At Groce & DeArmon, we’re well aware of just how untrue this is. In reality, no matter who you are, there’s always a risk of simply falling behind the incredible pace of modern life – and it says nothing about your success as a person. If anything, having the courage to admit you need help, and to confront the idea of bankruptcy, proves that you’re strong enough to keep going despite the obstacles that may be in your way.

You’re Weak if You Need Help

Following on from this false idea of failure, another toxic idea that seeking help for your financial issues suggests that you’re unable to handle them yourself. Once again, this speaks to the idea that being able to deal with all your problems alone suggests some kind of strength – but, again, this isn’t true.

Filing bankruptcy and dealing with debt is immensely complicated, both personally and legally. Being able to open and honestly discuss these problems with a bankruptcy lawyer or bankruptcy attorney from Groce & DeArmon, P.C. demonstrates that you’re not only proactive, but willing to own your financial missteps and fix your situation.

You’ll Never Get Back on Your Financial Feet

Outside of fears of personal failure, another extremely common hesitation in filing bankruptcy comes from the idea that you’ll never be able to re-establish your own financial security.

Bankruptcy is very commonly seen as a black mark on your credit and finances for the rest of your life. It’s also common to fear that others will assume you’re simply bad with money if you’ve had to file bankruptcy.

Again, the truth behind filing is often a lot more complicated than simple irresponsibility. One of the most common reasons people end up bankrupt is due to mounting medical bills, sadly an issue we see far more of at Groce & DeArmon, P.C. than we’d like.

Outside factors like this, or the general, unreliable economy leading us all to rely more and more on credit and loans, are far outside the realm of just being “bad with money”.

In truth, being in debt and avoiding the problem is far more irresponsible than recognizing the risks of debt and filing bankruptcy.

Groce & DeArmon, P.C. and the Truth of Bankruptcy

Groce & DeArmon, with many years of experience helping people in Springfield, MO with Chapter 7 bankruptcy, Chapter 13 bankruptcy, and many more types of legal aid, know the facts. We know that bankruptcy is often the best option, and our bankruptcy lawyers are ready to help.

A Brief History of Bankruptcy from Bankruptcy Lawyers

May 15, 2017 By Shari DeArmon

As experienced bankruptcy lawyers in Springfield, MO, the legal aid team at Groce & DeArmon, P.C. knows that bankruptcy has a long and storied history. The concept of debt and repayment stretches far back into history, and we want to take a look at some of the major historical examples of bankruptcy to give you an idea of how prevalent it’s always been.

Debt in Ancient Greece

We can find references to the concepts of lending money and owing debt all the way back to the Old Testament, with the elimination of all debt in the Jubilee Year. In Deuteronomy, we see an even more specific example of debt forgiveness with the introduction of the seven-year rule, which defined that as a period of the Lord’s forgiveness of all debt.

But, looking at ancient Greece, we see some of the first truly harsh punishments for unpaid debt. In their society, the Greeks had no time for forgiving debt and would take an entire family as debt slaves if they couldn’t pay back what they owed. If you’re stressed by the idea of seeking help from a bankruptcy lawyer, just be glad of how much things have changed. It could be much worse!

Medieval Britain

It wasn’t until much later, during the medieval period, that official laws for bankruptcy were introduced. In the 1540s, those who were declared bankrupt were treated as outright criminals, often being sentenced to debtor’s prison, or even death. Thankfully, this changed as time went on and with the establishment of a more organized, concrete banking system – not just in Britain, but across Europe. The Eighteenth Century saw the introduction of more familiar bankruptcy laws, with the debts being written off and debtors simply ordered to pay back all they could afford.

U.S. Bankruptcy Laws in the 1800s

Bankruptcy laws in the US were somewhat inconsistent, usually temporary measures, until the financial upheaval caused by the Civil War. Just before, and then following the war, new bankruptcy laws were introduced that included the discharging of debt.

However, unlike the bankruptcy law that our bankruptcy lawyers and attorneys are familiar with now, early laws favored the creditors much more than the debtors, meaning that the priority was in them getting their money back.

This often led to much harsher penalties for those who had filed, and the majority of bankruptcy filings were involuntary. This harsh treatment might explain many people’s hesitation, even now, in filing bankruptcy, seeing it as a punishment rather than a chance to start over.

The 1900s, The Great Depression, and a Shifting Focus

It’s not a surprise to learn that the Great Depression of the early 20th century in the US resulted in some significant changes to bankruptcy, both legally in the public perception. The Bankruptcy Acts of the 1930s, following the fallout of immense economic turmoil, were put in place to shift the focus of debt from paying back to creditors to offering the “clean slate” that many bankruptcy lawyers will refer to bankruptcy as now.

The 1970s and Modern Bankruptcy

The 1970s saw a further shake-up of bankruptcy law in the US. The renewed bankruptcy law of the late ‘70s created significant controversy as judges were given more power in bankruptcy cases. It took only a few years for these powers to be rolled back in the early 1980s.

Throughout the 1980s, bankruptcy legislation was modified to adapt to a renewed energy in the economy, making it easier for businesses of individuals to file bankruptcy. Unfortunately, the fast pace of finance in the ‘80s and into the ‘90s saw record numbers of people filing bankruptcy, not to mention many major businesses and established companies. However, the amount of cases filed also resulted in further changes to speed up the process.

Bankruptcy Lawyers Advice on the Future of Bankruptcy Law

Into the 2000s, changes to bankruptcy laws were still being made. Provisions made in the ‘90s were thought, by some, to make it easier for applicants to cheat their way out of their debts, and guidelines became more strict as late as 2007.

What this shows us is that, like anything related to the law or finance, bankruptcy has a complicated history. Laws continue to be pulled one way or another in a tug of war between debtors and creditors, and it’s hard to keep up with what’s happening if you’re focused on repaying your debts.

Our bankruptcy lawyers are experts in the field and can do the hard work for you, as well as offer professional, educated advice every step of the way. Contact Groce & DeArmon, P.C.’s bankruptcy lawyers today.

What Happens After Bankruptcy? Groce & DeArmon, P.C. Advice

May 8, 2017 By Shari DeArmon

Groce & DeArmon, P.C. has helped countless clients in Springfield, MO with bankruptcy cases. Whether it’s Chapter 7 bankruptcy, Chapter 13 bankruptcy, or bankruptcy protection, our team of experts knows how daunting and overwhelming the whole process can be. Not only that, we know that it also has the potential to make life very complicated in the aftermath.

In a previous Groce & DeArmon, P.C., blog, we outlined the best way to build your credit after declaring yourself bankrupt, but the challenge goes beyond just your finances. In this entry, we offer some advice on re-assessing your life after bankruptcy.

You’re Not Alone

First things first, you need to know that you’re not the only one. Many people end up having to file bankruptcy, especially in our modern, credit-driven culture. With so many people being encouraged to take out loans and use credit to pay for everything, the number of people in over their head with debt sadly has sadly increased, too. Groce & DeArmon, P.C. has had to help many people who have simply become overwhelmed with the financial demands of the modern world.

But, this does mean that it’s not just you. A lot of people feel there is a stigma to bankruptcy, feeling that they’ve failed in some way, or should be ashamed of or disappointed in themselves. This attitude doesn’t help anyone – least of all you! Let go of guilt or self-doubt, and remember that this has happened to many, many other people. You can also be assured that Groce & DeArmon, P.C. will be the last people to judge you based on your circumstances – we’re here to help.

Budget Carefully and Be Realistic

In the blog entry mentioned previously, Groce & DeArmon, P.C. laid out rebuilding credit. But setting yourself a new carefully planned budget isn’t just important for your credit score – it’s important for all your finances. The reason you had to file for bankruptcy was most likely that a mix of borrowing and spending ended up spiraling out of control. This is understandable, as most of us have a lot of responsibilities to juggle.

Take bankruptcy as an opportunity to look at your financial habits and previous plans with a fresh perspective. Look back at where the spending or borrowing increased, where it was you started to miss payments and struggle to pay back debts. Consider dividing your budget into savings, emergency money, and everyday costs, and remember that you need to try and live below your means.

Re-Evaluate Your Lifestyle

For some people who have been forced to file bankruptcy, living below their means is a struggle. The appeal of loans and credit that allow “extra” money is a slippery slope into insurmountable debt – and it can happen faster than you think. If you’re filing bankruptcy from losing control of your debt, you might want to use this is an opportunity to assess your lifestyle, as well as your finances.

We recommend looking through your previous expenses and considering what you were spending on that wasn’t strictly necessary. It’s no surprise if borrowing or paying with credit was being used on luxuries rather than must-haves, You may have to get used to reducing the quality of life you’ve gotten used to, in order to reduce your spending.

Don’t Be Afraid to Ask for Help

The most important thing to remember with filing bankruptcy is that help is out there. You shouldn’t avoid asking for help – either before or after filing – out of a misguided sense of shame or guilt. How you got into debt doesn’t matter, getting out of it does!

Don’t be afraid of asking for help, whether it’s with the filing process itself, or with budgeting and rethinking your lifestyle and expenses afterward. You’re not alone, and Groce & DeArmon, along with family and friends, are here to help put you back in the black.

Groce & DeArmon, P.C. Offers Professional Support

If you’re struggling with your costs and have come to the decision to file bankruptcy, Groce & DeArmon, P.C. is here to offer professional, understanding legal aid. Contact one of our qualified and experienced bankruptcy lawyers today.

Bankruptcy Lawyer Advice: How does Bankruptcy Affect Medical Bills?

April 26, 2017 By Shari DeArmon

The unthinkable has happened – your loved one has had a serious medical crisis, resulting in substantial, life-changing medical bills. The financial obligation has now taken over your life, with crushing debt. What is the best way to handle this new crisis? The bankruptcy lawyer team at Groce & DeArmon, P.C., has the answers.

Handling Your Medical Debt

Depending on your health insurance and the medical debt, there are a few things to do before filing for bankruptcy due to medical debt.

Negotiate with the various medical providers, including doctors and hospitals. Many will discount services for people who are underinsured or not insured.
Hospital Care Assurance Program: patients can apply for assistance with HCAP. Contact your hospital’s financial aid counselor for assistance.
Affordable Care Act non-profit hospitals are required to provide free care so that they may retain their non-profit status. Contact your hospital’s financial aid counselor to see if you qualify.
Check your medical bills carefully to make sure you are not being double-billed, or other billing errors are present. Look for unreasonably high charges and be sure to write down your questions as you formulate them, so you can contact the service providers in an efficient fashion.
Meet with the financial people at each provider’s office to negotiate a lower price or develop a payment plan.

Filing Medical Bankruptcy

Sometimes, no matter the best of intentions, the debt is overwhelming and debt discharge via bankruptcy is the only option. At this point, it is advised to hire a bankruptcy lawyer to assist you through your situation. The type of bankruptcy filed, either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, depends on your personal financial status as well as the size of the medical debt. Your bankruptcy lawyer can help you determine which type of bankruptcy is best for your situation.

Chapter 7 Bankruptcy with Medical Bills

Filing Chapter 7 Bankruptcy is for the person who has a low income, little to no assets with equity, and has a large medical debt. Medical debt can be wiped out in a Chapter 7 bankruptcy but your credit rating will take a substantial hit. While there is no cap on the amount of medical debt that can be discharged by a Chapter 7 bankruptcy, you will still have to qualify for Chapter 7 by showing that your income is low enough to pass a disposable income means test.

Chapter 13 Bankruptcy with Medical Bills

Chapter 13 Bankruptcy is for those who have assets with substantial equity, like real estate, vehicles, investments and so forth. In Chapter 13 Bankruptcy, you will still have to pay a portion of the medical bills, but it will help keep those equity-laden assets intact. Talk to your bankruptcy lawyer for more information.

Choosing a Medical Bankruptcy Lawyer

Selecting an experienced medical bankruptcy lawyer will guide you through the complex tax laws and find the best solution for your financial situation. Groce & DeArmon, P.C., one of southwest Missouri’s leading bankruptcy law firms, is ready to serve you. Contact us today for your free consultation.

Avoid Foreclosure with a Bankruptcy Attorney

January 24, 2017 By Shari DeArmon

Most homeowners would do anything in their power to avoid a foreclosure on their home. In some cases, there is nothing that can be done. But in many cases, declaring bankruptcy may help a homeowner keep possession of their home.

If you’ve fallen behind on your mortgage payments and the bank is harassing you with the possibility of foreclosure, a bankruptcy attorney at the law firm of Groce & DeArmon, P.C. can help. Most likely, foreclosure is not your only option and you may not need to give up your home. There are legal solutions that can help you regain your balance financially while also keeping your home.

How Does Foreclosure Work?

When you purchase a home, you sign several legal documents, including a deed of trust. The deed of trust is a document that permits your lender to foreclose on your home if you default on your loan. This simply means that if you stop paying your mortgage payment, your lender will take possession of your home. In the state of Missouri, your lender can do this without going to court. This is called nonjudicial foreclosure.

You will receive a notice of default, which is a notice that requests payment of the balance due, and you will also receive a notice of sale, which is a document that informs you that your home will be sold at auction. Once you receive a notice of default, you should know that your timeline is extremely short. You can either pay off the balance (plus late fees) or you can file a lawsuit to stop the foreclosure. Unfortunately, you may only have a few weeks (if that) before your receive a notice of sale.

How a Bankruptcy Attorney Can Help

You may be wondering how a bankruptcy attorney can be of any help in all this. The truth is, filing for Chapter 13 bankruptcy may be your only option if you are behind on payments but want to keep your home. A bankruptcy attorney will be familiar with Missouri’s laws regarding foreclosure and he or she will assist you in determining the best choice for your situation.

Once you file for Chapter 13 bankruptcy, an automatic stay will be created, which will prohibit creditors from collecting your debts. A bankruptcy attorney can help you work out a repayment plan with a judge so that you can pay off your late payment balance, as well as continue paying on your mortgage. Depending on your case, a lawyer may also help you get rid of second and third mortgages if you have them.

If you choose to file Chapter 7 bankruptcy, you may not be able to keep your home, but you’ll stall the foreclosure and have a few months to save your money, secure new housing and work things out with your lender.

Groce & DeArmon, P.C. Here to Help

Whether you’d like to learn more about your options or file Chapter 7 or Chapter 13 bankruptcy, call the law firm of Groce & DeArmon, P.C. today. We are happy to help you get started and meet with you for a free consultation.

Foreclosure isn’t the end. Let a bankruptcy attorney help you find your new beginning and get a fresh start.

Bankruptcy Lawyer Advice & Should I File for Bankruptcy?

December 21, 2016 By Shari DeArmon

When you’re in a situation where you feel like your debt has taken over your life, it may be time to file for bankruptcy. Bankruptcy has some negative connotations surrounding it, but it’s not necessarily a bad thing. Depending on your situation, bankruptcy could really help you out of a tough spot. Keep in mind, bankruptcy isn’t for everyone. In some circumstances, bankruptcy may not be the best option. In most cases, filing for bankruptcy is more of a last resort. If you’re confused as to what you should do, a consultation with a bankruptcy lawyer can help. Read on to learn more about what situations may warrant filing for bankruptcy and how a bankruptcy lawyer can help.

Look Through Your Debts

The first step to deciding whether or not to file for bankruptcy is to step back and take a look at your debts. Figure out what can and can’t be fixed by bankruptcy. Student loans, child support, tax debts, and other certain kinds of debt cannot be wiped clean by filing for bankruptcy. If you are unable to get rid of most of your debt with bankruptcy, you may be better off trying to figure out a plan with the creditors. After figuring out how much debt you owe, assess all of your assets. If your assets are less than your debt, you may have good reason to file for bankruptcy.

Figure Out How Safe Your Assets Are

Depending on if you’re filing for Chapter 7 or Chapter 13 bankruptcy, your home, and other property could be at risk for being taken. There are a number of factors that go into you keeping your home when filing for bankruptcy. Chapter 7 may clear up enough debt for you to make your mortgage payments, but if not, you could have your home taken away. If you file for Chapter 13 and you have a good, steady income, you’re likely to be able to work your mortgage payments into your plan for repayment. Keep in mind, when you first file for bankruptcy there will be an automatic stay in place to keep your things from being taken and to stop creditors from pursuing you, but this stay is temporary. You will need to have a plan in place in order to keep your things.

Contact a Bankruptcy Lawyer for More Information

Here at Groce & DeArmon, P.C. we can get you a bankruptcy lawyer who can work out the best case for you. When you work with a bankruptcy lawyer, they are able to give you your options and tell you which type of bankruptcy will work best for your unique situation. Being alone in your bankruptcy fight can be scary, and Groce & DeArmon, P.C. wants to make sure your rights are protected. Contact us today to set up a free consultation with a bankruptcy lawyer and to start getting your life back on track.

Bankruptcy Lawyer Advice: How to Build Your Credit After Bankruptcy

December 14, 2016 By Shari DeArmon

When you’re living with debt, your credit score probably seems like it’s in dire straights. The good news is, you’re not doomed to bad credit for the rest of your life. Bankruptcy clears your debt and essentially gives you a clean slate. From here you can start to slowly rebuild your credit score through several methods.

A bankruptcy lawyer at Groce & DeArmon, P.C. can help you take that first step by getting you through the bankruptcy process. Filing for bankruptcy can be stressful and a bankruptcy lawyer can help ease the stress. Once they do what they do best, you can start to get your credit back on track.

Check Your Credit Score

The first step is the scariest part, but don’t cover your eyes. Finding out your exact credit score will give you an idea as to where you’re starting. There are plenty of free ways to check your credit score, so there’s no excuse not to see where you stand. Some of these credit score apps can even suggest credit cards that you may be eligible for. If you don’t know how credit scores work, these apps can usually give you an idea of what is going on with your score.

Apply for a Secured Credit Card

The easiest way for you to start rebuilding your credit is to make payments on a credit card. Many people think that bankruptcy will bar them from being able to get loans or cards from lenders. You actually have a much better chance with lenders after bankruptcy than when you’re still in debt. Since you have the slate clean, they know you’re more likely to pay than when you had other debt obligations. Also, they know you won’t be able to file for bankruptcy again for quite some time.

Be prepared for higher interest rates and lower credit limits, but that’s what comes with rebuilding your financial status. Luckily, the higher interest rates shouldn’t concern you as much because you should be planning to be responsible with your payments. Only use your card for a few purchases a month, and then pay off your bill. Slowly but surely your credit will start to build again. Remember, bankruptcy leaves your credit report in 10 years, so do your best to build your credit in that time.

A Bankruptcy Lawyer Can Help You Leave Debt Behind

If you have massive, crushing debt and you’re afraid that you’ll never escape, a bankruptcy lawyer can help. Here at Groce & DeArmon, P.C. we will assign you a bankruptcy lawyer to help you start getting your life back on track. You don’t have to live with debt and bad credit forever. To set up a free consultation with a bankruptcy lawyer, contact us today. We look forward to speaking with you.

Navigation