Filing for Bankruptcy

Filing Bankruptcy in Missouri FAQs

January 17, 2022 By Groce & DeArmon

Filing for bankruptcy is not an easy choice. You feel frustrated and anxious while worrying about your future and your family’s well-being. You may also feel like a failure.

We understand, and we’re here to offer you help and hope.

The bankruptcy attorney at Groce & DeArmon, P.C., can help you file for bankruptcy in Missouri.

We answer frequently asked questions about filing bankruptcy in Missouri in today’s blog.

How do I file for bankruptcy in Missouri?

Decide whether you want to file Chapter 7 bankruptcy or Chapter 13 bankruptcy. A bankruptcy attorney can assist you with this decision and help you with this process. Although you do not need an attorney to file, the federal court system highly recommends it due to proper filings, deadlines, and handling any issues with creditors.
Take the means test. This offers a way for you to determine if you can file for Chapter 7 bankruptcy based on your debt load and income levels.
Attend credit counseling. Before you file for bankruptcy, you must go through a credit counseling course. You will need to show the court that you attended credit counseling.
File a petition with the court. Bankruptcy filings occur through federal court, no matter what state you live in. The overall process takes about 90 days from this point.

How much does it cost to file bankruptcy in Missouri?

Filing fees are $338 for Chapter 7 and $313 for Chapter 13 bankruptcy in Missouri as of Dec. 1, 2020. Fees are set by federal law. Low-income filers can have fees waived. Attorneys fees vary, and some attorneys can make a payment plan with you through legal aid. Typically, the first consultation is free.

What are exemptions for filing bankruptcy in Missouri?

Exemptions vary from state to state. The Missouri Revised Statutes set up how much income or assets are exempt from federal bankruptcy protection, meaning you get to keep some of your income.

Common exemptions include:

Equity of your home of up to $15,000 or up to $5,000 in a mobile home.
Up to $3,000 of equity in a motor vehicle, even if you just purchased a vehicle within the last year.
$600 wild card exemption to go towards any nonexempt property.
Up to $3,000 of personal property, including clothing, household appliances, furniture, animals, health aids, and musical instruments.
As much as $1,500 for a wedding or engagement ring and $500 for any other type of jewelry.
Up to $1,500 for firearms and ammunition.
All tax-exempt retirement accounts and health savings accounts.

Can an attorney help me with filing bankruptcy in Missouri?

Yes, an attorney can help you file bankruptcy in Missouri. This occurs in federal court. Contact the dedicated bankruptcy attorney at Groce & DeArmon, P.C., or call us at 1-800-640-3706 in Missouri or (417) 862-3706 for a free initial consultation.

Groce & DeArmon, P.C. Explains Equity and How It Affects Chapter 7 Bankruptcy

May 26, 2021 By Groce & DeArmon

The bills are piling up, and you’re unsure of where to turn. You begin to consider your options, and the question of bankruptcy surfaces. After some brief research you begin to wonder how exactly bankruptcy works.

The question, “If I file, what happens to my debt?” is a common one. You might find words like “Equity” and “Chapter 7 Bankruptcy”, but you don’t know how these may pertain to your case. Groce & DeArmon, P.C., explains the power of equity and how it is used in Chapter 7 bankruptcy in today’s blog.

What Is Equity?

Equity represents the numbered value that will be returned to shareholders once all assets are liquidated in the process of filing for bankruptcy. Equity is typically assessed using the amount owed on your debted assets and valuing it against how much those assets are worth.

Let’s look at a mortgage as an example. If you have $100,000 listed as your currently owed balance for your mortgage, but your house is valued at $150,000, then your equity in your house is $50,000.

There are two types of assets involved with bankruptcy:

Non-Exempt Assets. All of the property that cannot be protected by an exemption. This is property that homeowners are required to turn over to the Chapter 7 bankruptcy trustee. The trustee sells these assets to pay the creditors the homeowners owe money to. In return, the homeowner receives a discharge of all debt that is considered eligible for discharge.
Exempt Assets. Assets that can be protected from bankruptcy. They vary by state. Missouri has several exemptions listed here.

How Equity Affects Chapter 7 Bankruptcy

Equity is considered an asset in chapter 7 bankruptcy. Returning to our mortgage example, creditors can use your mortgage equity of $50,000 to pay back the creditors you owe debt to through the avenue of a home equity loan.

This can be a tricky path to walk because if you do not consistently make the payments on your home equity loan you will lose your home. You could also lose your home regardless of how much equity you have because the eligibility to use equity is dependent on the amount of equity state law allows you to use to exempt your home.

In the state of Missouri, the maximum amount of exemption for a property is $15,000. It’s also limited to the dwelling and land on which you currently live. For more information on your personal eligibility to file for Chapter 7 bankruptcy, and whether you qualify to keep your home, contact Groce & DeArmon, P.C.

Questions On Whether You Qualify for Chapter 7 Bankruptcy? Ask Groce & DeArmon, P.C.

Wondering if you can file for Chapter 7 bankruptcy? Need some compassionate and professional legal advice? Contact us today. We can discuss your options and help you determine the best course of action for your individual situation. Our first consultation is always free. Contact Groce & DeArmon, P.C. or call toll-free 1-800-640-3706 in Missouri or (417) 862-3706.

Our Bankruptcy Attorneys Discuss How to Talk About Bankruptcy to Your Kids

October 1, 2020 By Groce & DeArmon

Bankruptcy is stressful for everyone involved, even your kids. Although your children may not be directly involved with your family’s finances, bankruptcy may cause them anxiety and worry, too. In today’s blog from the bankruptcy attorneys at Groce & DeArmon P.C., we discuss how to talk about bankruptcy with your kids.

Use Age-Appropriate Language and Concepts

Preschoolers may not understand the complex concepts associated with debt, income, and bankruptcy. They do understand big changes in their lives, such as moving to another home. Smaller changes may not be as noticeable. Older children are more sophisticated in their abstract thinking.

Elementary school kids understand saving money and the need to pay bills, but not necessarily the legalities of bankruptcy. Pre-teens and teens will understand, even if they get upset about having to cut back on certain things to save money.

Kids May Blame Themselves

Children may blame themselves for bankruptcy. Obviously, this is not the case at all. But your kids may still think they are in some way responsible for their parents spending money on them for toys, celebrations, and the like. Be gentle with them, tell your kids that you love them, and reiterate to them that it’s not their fault whatsoever. Offer something as a rebuttal, such as a changing economy or switching jobs.

Distract Them From Worry

Getting around your kid’s fears and worries can be as simple as distracting their minds. Keep their routine as normal as possible. Children should be having fun learning at school, playing with friends, and just being kids. If you need to and can find time, set aside more time for fun activities with your children so they have something else to focus on aside from financial worries.

Rather than discuss negative things about finances, turn bankruptcy into a learning experience about managing money. Talk about shopping, saving money to buy larger items, and budgeting.

Stay Calm

The bankruptcy attorneys at Groce & DeArmon P.C. understand that bankruptcy is upsetting. Your world is changing in a way you didn’t expect. Kids are smart, and they’ll notice a change in your emotional state. When they ask you if anything is wrong, stay calm. Your demeanor goes a long way to helping your children avoid the worry and stress of filing for bankruptcy. Know that bankruptcy isn’t the end of the world, and you can recover. Filing for bankruptcy is the first step.

Groce & DeArmon P.C. and Our Bankruptcy Attorneys

Is your negative financial situation causing constant stress and worry in your family? Talk to the bankruptcy attorneys at Groce & DeArmon if you feel bankruptcy is a solution for you. Contact Groce & DeArmon P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for more information or a free consultation.

Filing for Bankruptcy Myths, Part 2

September 17, 2020 By Groce & DeArmon

Filing for bankruptcy is scary and stressful. You’re uncertain about your future, and you wonder how this will affect your finances moving forward. In today’s blog from the bankruptcy attorneys at Groce & DeArmon, P.C., we talk about more myths about filing for bankruptcy in part two of our series.

Myth 1: You Can’t Get Any Job

You cannot be denied a job because of your financial status unless you will be getting a job that requires you to be financially responsible. These jobs include the banking industry, executives, and managers who oversee company finances, and jobs that require you to manage some financial aspect of an employer. Our bankruptcy attorneys can counsel you about what an employer can and can’t do when/if they find out about your bankruptcy.

Myth 2: Your Retirement Savings Are Ruined

Retirement accounts are exempt from bankruptcy in Missouri. These include 401(k) accounts, IRAs, pensions, and retirement accounts for public workers. Our bankruptcy attorneys will make sure you understand which financial accounts are subject to scrutiny by the bankruptcy court and bankruptcy trustee.

Myth 3: Don’t Disclose All of Your Property

This is a huge mistake. Bankruptcy trustees will always find out what property you own. Hiding property can lead to criminal charges of bankruptcy fraud, and that can lead to even more drastic consequences than filing for bankruptcy alone. Missouri has exemptions for certain property, so it makes sense to disclose all of it. Our bankruptcy attorneys can examine your situation to find the best possible solution for you.

Myth 4: Debt Consolidation Offers a Better Alternative

Debt consolidation often delays the inevitable. The money you spend on debt consolidation could go towards filing for bankruptcy and a fresh start.

Myth 5: Sell Your Property Before Declaring Bankruptcy

Never do this. The bankruptcy trustee may see this as an attempt to defraud your creditors. You can’t even sell your property to relatives, because the bankruptcy is in your name and not theirs. Again, you can be criminally charged with fraud. Selling your assets may take too long, and you might not be able to pay all of your debts anyway. Talk to our bankruptcy attorneys about what you can do (legally) to protect your assets.

Talk to Bankruptcy Attorneys at Groce & DeArmon, P.C.

Are your creditors calling you daily, even on the weekends? Do you need debt relief? Are your bills overwhelming you? Chapter 7 or Chapter 13 bankruptcy may offer a solution. Contact Groce & DeArmon, P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for more information or a free consultation about filing for bankruptcy.

Are Bankruptcies Public Record? Our Bankruptcy Attorney Answers

August 19, 2020 By Groce & DeArmon

Filing for bankruptcy is not an easy decision to make. It’s a stressful and emotional time because you want to do what’s best for you and your family, but you also want to keep as much of your property as possible. You worry about many things, and one of them may be whether someone may find out you’re declaring bankruptcy. In today’s blog from Groce & DeArmon, P.C., we answer the question, “Are bankruptcies public record?”

Bankruptcies Are Filed in Federal Court

Bankruptcies are filed in federal court. For Springfield and Southwest Missouri, that means the Southern Division of the Western District of Missouri in Springfield, or the Southwestern Division in Carthage. Filings and petitions are filed electronically. The time of your bankruptcy hearing is added to the docket, typically within 60 days of your initial filing. Once you file, anyone may call the court and verify that you’ve filed for bankruptcy protection. Our bankruptcy attorney can explain what happens after you file.

Online Access

Federal courts utilize the PACER (Public Access to Court Electronic Records) system for accessing electronic records of court filings. Anyone with a PACER account could see your bankruptcy filings and petitions. However, ordinary people generally don’t access this system. Attorneys, creditors, financial institutions, and interested parties can register for a PACER account and pay a fee.

Then the federal court system must approve the application. Our bankruptcy attorney has a PACER account, and we can show you what these online records look like if you have concerns. PACER protects your privacy from ordinary people trying to locate your bankruptcy record.

Daily Events

Because bankruptcies are public records, news organizations and media outlets can apply for a PACER account. Daily Events is one of Missouri’s oldest newspapers. Based in Springfield, it lists bankruptcies filed in federal court. Daily Events lists the date of the filing, name of the petitioner, and what chapter (7 or 13) of bankruptcy was filed. Anyone can view the paper version of Daily Events at a public library, or someone can pay for a subscription to the online version to search the newspaper’s records.

In-Person Visit

Another option is for members of the general public to visit the federal courthouse to view bankruptcy documents through the court clerk. However, the person seeking the information can’t just randomly search for records. Anyone looking for a bankruptcy filing needs a name or the date the petition was filed. The person must go through the proper security checkpoints to get into the courthouse. Phones are not allowed in the federal courthouse unless you’re there on court business and NOT a member of the general public. Our bankruptcy attorney can outline what someone needs to do to access these records in person.

What Does and Doesn’t Appear in Court Records

Court records could list any petitions, filings, disputes, or list of creditors that accompany petitions. What doesn’t appear is the petitioner’s Social Security number. Just the last four digits appear on the documents. If you have concerns about your privacy when you file for bankruptcy for any reason, our bankruptcy attorney will consult with you about the best course of action and steps we can take.

Talk to Groce & DeArmon, P.C., About Bankruptcy Protection

Are your creditors calling you on an almost daily basis? Do you need debt relief? Chapter 7 or Chapter 13 bankruptcy may be a solution. Contact Groce & DeArmon P.C. or call toll-free 1-800-640-3706 in Missouri or 417-862-3706 for more information or a free consultation about filing for bankruptcy.

Bankruptcy Options for Married Couples

December 30, 2019 By Groce & DeArmon

Married couples can choose to file for bankruptcy individually or jointly. At Groce & DeArmon, we’ve filed many individual and joint bankruptcy cases in southwest Missouri. If you’re considering your options, what’s best for you will depend on the amount of property you own, the exemption laws of your state, and whether you have joint debts. Here is a brief overview of whether to file for bankruptcy individually or jointly with your spouse.

Individual Bankruptcy Filing

If you’re married, you don’t have to file for bankruptcy with your spouse. If only one spouse has debt, it may be in your best interest to file for bankruptcy individually. An individual filing lets one spouse discharge his or her debts without harming the other spouse’s credit.

Some states don’t allow you to double your bankruptcy exemptions in a joint filing. If this is true for your state, you may benefit from filing two individual bankruptcies to protect more of your property. Missouri is not a community property state. To learn more about how this affects your bankruptcy filing, contact our experienced lawyers.

Joint Bankruptcy Filing

Under bankruptcy law, married couples can file a joint bankruptcy petition together. Joint bankruptcy is often a convenient and cost-effective option for married couples. You can complete only one petition, attend bankruptcy hearings together, and eliminate your debts through a single bankruptcy. Many times, it’s more efficient than it would be to file two individual cases.

Generally, filing for bankruptcy with your spouse is a good idea if you have many joint debts. Also, the state of Missouri allows you to double your bankruptcy exemptions in a shared filing. The only exception to this is the homestead exemption, which can’t be doubled if only one spouse owns the property.

Talk to Our Bankruptcy Lawyers

Whether you decide to file jointly or individually, bankruptcy can help you resolve financial hardships and get moving in the right direction. However, before you proceed, you should review your case with an experienced bankruptcy lawyer. Groce & DeArmon, P.C. is ready to answer your questions and walk you through each step of the process. Contact our bankruptcy lawyers today for a free consultation.

Bankruptcy Exemptions in Missouri

August 19, 2019 By Shari DeArmon

If you’re filing for bankruptcy, it’s important to understand that there are exemptions that can protect some or all of your property in the state of Missouri. Depending on your circumstances, these exemptions may apply to Chapter 7 or Chapter 13 bankruptcy. In today’s blog, the bankruptcy attorneys at Groce & DeArmon talk about a few of the exemptions you could utilize when declaring bankruptcy in the state of Missouri.

Missouri Bankruptcy Exemptions

Before you read our list of exemptions, please note that you can only exempt property using state exemptions in Missouri. You may not use federal bankruptcy exemptions. Also keep in mind that married couples in Missouri filing for joint bankruptcy may double exemption amounts, with the exception of the homestead exemption. Make sure to consult with your bankruptcy attorney when determining what exemptions you are eligible for.

Homestead

This exemption covers up to $15,000 in real estate property or up to $5,000 for a mobile home. This figure applies to the amount of equity put into the home, real estate, or property and not the total value of the property.

Domestic Support

This exemption covers up to $750 per month for support, alimony, or maintenance.

Motor Vehicle

This exemption protects up to $3,000 of equity in a motor vehicle, or $6,000 for a married couple sharing a joint vehicle.

Household Goods/Private Property

Some household goods may be exempt up to $3,000 or $6,000 for married filers in Missouri. Household goods include items such as appliances, furnishings, crops, clothing, books, and instruments.

Jewelry

This exemption covers up to $1,500 for a wedding ring and up to $500 for all other jewelry.

Firearms and Ammunition

This exemption protects up to $1,500 worth of firearms, accessories, and ammunition.

Insurance Benefits

You can protect up to $150,000 of life insurance dividends, loan, or cash surrender value, and interest, if you purchased these benefits more than six months prior to filing bankruptcy.

Wildcard

There are items that may not fall under specific categories (listed above or otherwise) that may still be exempt using the wildcard exemption. This will cover up to $600 in the equity of any items not covered in existing categories.

Head of Household

If the head of the household filed for bankruptcy and provides most of the income for the household, that person may be exempt from any item or asset up to $1,250 in addition to the wildcard exemption. They may also exempt for an additional $350 for each child under the age of 21 who resides in the household.

Groce & DeArmon Can Help

If you have any questions about which exemptions you qualify for when filing for bankruptcy, it’s a good idea to contact a trusted bankruptcy attorney. Our staff can help. The bankruptcy attorneys at Groce & DeArmon have over 30 years’ experience with Chapter 7 and Chapter 13 bankruptcy in Missouri. Get started today by scheduling a free consultation or calling us at 417-862-3706.

What to Expect Before Filing for Bankruptcy in Missouri

August 5, 2019 By Shari DeArmon

If you are filing for bankruptcy in Missouri, it is important to understand that the process can be complicated. There are many things to consider before you file, including planning, testing, laws, requirements, and even counseling. Today, the bankruptcy attorneys at Groce & DeArmon are here to explain the details about what happens before you file for bankruptcy in the state of Missouri.

Before Bankruptcy

Before you can file for bankruptcy, you will need to go through the process of credit counseling, take a means test, and gather the appropriate paperwork. Here is what you can expect from each step of this process:

2005 Bankruptcy Act Credit Counseling

The 2005 Bankruptcy Act states that all debtors who file for bankruptcy are required to go through credit counseling in the six months prior to filing. Counseling is required for all debtors, no matter their financial state. This process will help determine whether bankruptcy or an informal repayment plan is the best option. Keep in mind that you aren’t required to agree to a repayment plan if the agency proposes one, but you must file it along with your bankruptcy documents.

2005 Bankruptcy Act Means Test

The 2005 Bankruptcy Act also states that all debtors must undergo a means test. This test will analyze their expenses to determine if they qualify for Chapter 7 bankruptcy or if they must file for Chapter 13. This is done by looking at income from the last six months before filing compared to the median income in the state of Missouri. Debtors may file for Chapter 7 bankruptcy if their income is less than the median in Missouri. If your income is greater than the median, other factors will be applied to determine if you may file for Chapter 7 or of you must file for Chapter 13.

Gathering Appropriate Paperwork

In order to file for bankruptcy, you must gather the appropriate paperwork to complete the process. This includes:

An itemized list of current income sources
Any large transactions in the last two years
All monthly living expenses
Secured and unsecured debts
All property and possessions
Tax returns from the past two years
Deeds and car titles
Loan documents

What Happens Next

After you have completed these processes with the help of your trusted bankruptcy attorney, you may then file for bankruptcy or follow through with your payment plan. You should always contact an attorney and research the rights, costs, requirements, and process of Chapter 7 and Chapter 13 bankruptcy to ensure the process runs as smooth as possible. It’s also important to understand what happens after you file for bankruptcy and that there are ways to recover in Life After Chapter 13 Bankruptcy.

Bankruptcy Lawyers Groce & DeArmon Can Help

If you are considering filing for bankruptcy and want to learn more about your options, schedule a Free Consultation with trusted bankruptcy lawyers Groce & DeArmon. With over 30 years of experience with legal help and 18 years of experience filing for Chapter 7 and Chapter 13 bankruptcy in southwest Missouri, we can help you find financial freedom. You can call us at 417-862-3706 or visit us online to learn more about our services.

Groce & DeArmon Explain the Bankruptcy Litigation Process

January 22, 2019 By Shari DeArmon

In most cases, filing for bankruptcy is straightforward if you meet the requirements. While it’s rare for a borrower to have to go trial, disputes can emerge from creditors or trustees. If there is a dispute, a bankruptcy judge will step in and resolve the conflict.

If a dispute has arisen during your bankruptcy case, read on with Groce & DeArmon to learn what you can expect.

Bankruptcy Litigation Types

Broadly speaking, there are two types of bankruptcy litigation: contested matters and adversary proceedings. These two types differ in complexity and how the court will handle them under the rules of the bankruptcy procedure.

Adversaries

Some litigation in bankruptcy cases must be handled as a separate case called an adversary proceeding. Similar to other types of lawsuits, the proceedings involve a plaintiff and a defendant, and will ultimately be decided by a judge or jury without prior settlement of the litigants. Any issue in a bankruptcy case can essentially be filed as an adversary proceeding.

Under the Federal Bankruptcy Procedure Rules, a few things must be resolved through the adversary process, including disputes to:

Recover money or property (with certain exceptions)
Determine lien interests on property
Revoke a discharge
Determine what debts are dischargeable
Obtain an injunction — an order that stops a particular action

The rule includes other actions, as well. For more about adversary proceedings, reach out to the bankruptcy lawyers at Groce & DeArmon.

Contested Matters

Some issues in a bankruptcy case are simpler than others. In these situations, the court will resolve the problem as a contested matter. Examples include objections to proof of claims, objections to Chapter 13 plans, and motions to lift an automatic stay. If the disputes become complicated, a judge could turn the case into an adversary proceeding. After listening to both sides respond, the judge decides the matter through a hearing process.

Appeals

Most decisions made in adversary proceedings and contested matters can be appealed. When the appeals are filed, the U.S. District Court or a bankruptcy appellate panel will typically review a bankruptcy court’s decision. Then, an adversary can appeal a case to the U.S. Circuit Court of Appeals, and eventually to the U.S. Supreme Court. Most lawsuits and cases are handled by a bankruptcy lawyer and don’t go directly to the U.S. Circuit Court of Appeals.

What’s Not Decided in a Bankruptcy Court

The bankruptcy court tends to deal only with issues of liquidation of assets and payment of debts. Divorce or child custody cases, personal injury matters, and probate matters are not usually decided by a bankruptcy judge.

Related Post: What Happens After Bankruptcy?

Get Help from a Bankruptcy Lawyer at Groce & DeArmon

If you’re considering bankruptcy and you’re concerned about the process, call a bankruptcy lawyer at Groce & DeArmon, P.C. Our attorneys have the experience to help steer you through the difficulties of bankruptcy filings. To set up a free consultation, you can reach our office at 1-800-640-3706.

When You Should Seek Legal Aid For Potential Bankruptcy

November 21, 2018 By Shari DeArmon

The bankruptcy process is often drawn out and tedious, but many people still wait too long to seek out legal aid. When it comes to avoiding bankruptcy, there are some things that you can do on your own or with the help of a financial advisor. However, when it becomes clear that bankruptcy is a real possibility, you will need to seek legal aid to make sure you have all your bases covered.

In today’s blog post, Groce & DeArmon will take a look at when it is the right time to seek out legal help with your bankruptcy.

Is Bankruptcy a Legitimate Option?

The first thing you need to determine when it comes to the bankruptcy filing process is whether bankruptcy is even the right option. While bankruptcy is a useful tool for those who are in financial trouble — specifically those who are in debt — it isn’t right for everyone.

While you can research to find out if it is right for you, without the proper legal assistance it will be difficult to know if you qualify and under what circumstances you should file. So, before making a decision about a bankruptcy filing, you should seek out legal aid and learn if bankruptcy is the right choice.

Related Post: Advice For Avoiding Bankruptcy

What Chapter Should I File Under?

If filing for bankruptcy is a good option for your situation, you need to figure out what chapter you will file under. Chapter 7 and chapter 13 are the most common types of bankruptcy, and they are specialties of Groce & DeArmon.

With chapter 7 bankruptcy, filers are given the opportunity to wipe the slate clean through liquidation. With chapter 13 bankruptcy, filers will be given a custom payment plan over a 3-5-year period that allows them to pay off their debts without losing assets. Deciding which chapter you will file under is arguably the most critical part of the process and cannot be done without proper legal aid.

Who Should Do The Filing?

Ultimately, the actual filing process is where you will need legal aid the most. Bankruptcy filings are often complicated, and mistakes can be costly. Having a bankruptcy attorney there to help you fill out all the paperwork and get it where it needs to go will take stress off of your shoulders and ensure that the filing is done correctly.

Contact Groce & DeArmon For More Legal Aid Tips

It can be difficult to know when you need legal aid for your bankruptcy filing. If you are in need of legal assistance and planning to file for bankruptcy, get in touch with Groce & DeArmon for help at (417) 862-3706 or contact us online today.

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