about bankruptcy From Our Springfield Bankruptcy Attorney

What Happens After You Have Been Approved for Chapter 7 Bankruptcy?

March 8, 2017 By Shari DeArmon

The word bankruptcy seems scary at first but sometimes it’s the only viable option to clean up unpayable debt and recover your life. Chapter 7 Bankruptcy is the most common Chapters seen in cases throughout the United States. This is when a court-appointed trustee collects any assets you might have, and liquidates them to pay back creditors as much as possible. So, what exactly happens once you’ve filed and been approved for Chapter 7 Bankruptcy?

The Process

During the initial process leading up to your approval, you will have met with your trustee to show and discuss bank statements, credit card invoices, proof of income, as well as other documents related to loans and finances. He or she will also want proof of any assets you own and may have them evaluated and confiscated. Not every item you own will be liquidated through this process. The underlying reason that Chapter 7 Bankruptcy exists is to give you a fresh start. Therefore, the court will undoubtedly leave you with enough items to live but will remove anything that isn’t proven to be a necessity and can return some money to creditors.

Does Chapter 7 Bankruptcy Remove All Debt?

Most of your debt will be forgiven through this process but not all debt is the same. The court won’t dissolve child support, alimony, fines for legal violations, housing fees for cooperative buildings, student loans, debts caused by destruction of person or property, or debts accrued through federal taxes.

There are exceptions that may help you dissolve debt that usually isn’t forgiven. Both student loan debt and tax debt can be discharged if certain criteria are met. You must have filed your most recent tax return, you can’t have committed any type of income tax fraud, and the debt you have accrued can’t be from within the last three years. There are some other points that can impact this decision, such as an assessment or audit by the IRS within the year you are applying.

Cleaning Up Your Credit

Chapter 7 Bankruptcy follows you for 10 years and can still impact your finances following that decade of clean credit. While you are recovering from filing, you should begin the process of cleaning up your credit rating. This can prove difficult because credit card companies and banks aren’t likely to approve you for any kind of loan. Instead of applying for traditional cards, approach a bank about a secured credit card. This allows you to deposit an amount, of which you can borrow 50% to 100%.

If you can achieve any sort of loan or financial account in your name, keep your payments up to date. Always pay more than the minimum and pay on time. If you use a credit card in the future, try to use it only when you know you can pay the entire purchase back within that month. This will help you to avoid accrued interest and restore some of your credit score.

For more information on Chapter 7 Bankruptcy and legal aid, contact Groce & DeArmon for a consultation.

5 Important Questions to Ask Your Bankruptcy Lawyer

January 31, 2017 By Shari DeArmon

If you’re considering filing for bankruptcy, it’s important that you choose an experienced and aggressive bankruptcy lawyer. Before making a decision to hire one, make sure to ask the following questions.

What are the benefits and negative effects of filing for bankruptcy?

Your bankruptcy lawyer should provide you with a balanced view of bankruptcy. Meaning, he or she should fill you in on all the pros and cons so you can make an educated decision. If your attorney tells you there are no negative consequences associated with filing for bankruptcy, run the other way! There will always be pros and cons to bankruptcy but that doesn’t mean it’s not the best option for you.

Can I see an estimated payment plan if I choose to file Chapter 13 bankruptcy?

If a bankruptcy lawyer recommends that you file Chapter 13 bankruptcy, always ask to see an estimated repayment plan. This should always be offered anyway, but if for some reason it’s not, make sure to ask for it. Your bankruptcy lawyer should be able to do this during your initial consultation, and if he or she cannot, this is a sign of inexperience or laziness.

What are your attorney fees and how are you paid?

This may seem awkward to ask but it’s important that you ask it. You need to know how your bankruptcy lawyer expects to be paid and in what timeframe this needs to happen. Having this information will set all expectations from the beginning, so you know exactly what your attorney expects you to pay and when it is due.

Who will come with me to court?

Going to court to file bankruptcy can be extremely nerve-wracking, especially if you’ve never been to court before. An experienced bankruptcy lawyer should accompany you to court and provide a strong representation for your case.

How should I contact you?

It’s very important that you are able to easily contact your bankruptcy lawyer during the duration of your case. Make sure you collect contact information, including your bankruptcy attorney’s phone number, email address, and office hours. If your lawyer has a paralegal helping him or her with the case, it would be wise to get their contact information as well.

Meet with a Bankruptcy Lawyer Today

If you’re ready to talk to a bankruptcy lawyer, contact the law firm of Groce & DeArmon, P.C. today to schedule your free consultation. We have provided experienced legal aid to countless individuals for their bankruptcy cases, and we’re happy to help you with yours. Call (417) 862-3706 to see what we can do for you!

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 and Repossession: How to Protect Your Vehicle from Creditors

January 18, 2017 By Shari DeArmon

Bankruptcy and repossession are both ominous and dreaded things to talk about, but they are absolutely a reality for many individuals in financial distress. If your vehicle has just been repossessed or you have received several pre-repossession notices from your lender, filing Chapter 7 or Chapter 13 bankruptcy may help you get your vehicle back or prevent it from being taken in the first place.

Reasons for Repossession

If you have fallen behind on your payments, failed to maintain car insurance, or have otherwise defaulted on your car loan, your lender may repossess your vehicle. Although a lender cannot remove your car from a closed garage or breach the peace (aka cause you physical harm) while repossessing your vehicle, your lender may lawfully repossess your vehicle without prior notification.

When it comes to bankruptcy and repossession, most lenders will send notices to get you to pay something on your loan. But if you refuse to pay, or you simply cannot pay, the repo man will be paying you a visit eventually.

How to Protect Your Vehicle from Creditors

If you have fallen behind on your payments and are struggling in other financial areas of your life, your lawyer may have suggested bankruptcy as a valid option. Filing for Chapter 7 or Chapter 13 bankruptcy may help protect your vehicle from repossession. There are also a few things you can do to avoid repossession.

The automatic stay. When you file for Chapter 13 or Chapter 7 bankruptcy, an automatic stay is created. This prohibits most creditors from continuing their collection efforts against you. Once a judge approves your repayment plan, as long as it takes care of any outstanding payments you’ve missed, your lender cannot repossess your vehicle. If your car has already been repossessed before you file for bankruptcy, you may be able to get it back if your repayment plan addresses your overdue payments.

Catch up on your payments. Another way to avoid vehicle repossession is to catch up on your missed payments and get your lender off your back. Of course, this may not be easy if you are several payments behind, but if you can afford to pay the past due amount, it is highly recommended.

Talk to your lender. The truth is, your lender just wants you to pay something on your loan. Even if you can’t afford your monthly payment on your car, you can always call your lender and try to negotiate the terms of your payment plan. You may be able to work out a lower monthly payment that you can afford. Bankruptcy and repossession don’t have to go hand-in-hand. Talk to your lender to find out what your options are.

We Can Help with Bankruptcy and Repossession

If you’re struggling with bankruptcy and repossession, a bankruptcy attorney can help you sort out the mess. Vehicle repossession is always stressful and messy, but there are ways a bankruptcy lawyer can assist you in avoiding that situation.

Call the law firm of Groce & DeArmon, P.C. today to schedule your free consultation with one of our attorneys. Our lawyers are familiar with the issues concerning bankruptcy and repossession. We will gladly listen to you and help you file Chapter 7 or Chapter 13 bankruptcy, if necessary. Don’t let your lender or other creditors push you around. Consult with an attorney today and get back on the road to progress.

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.

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