credit counseling From Our Springfield Bankruptcy Attorney

Must You Go Through Credit Counseling Before Filing for Chapter 7 Bankruptcy?

January 10, 2021 By Groce & DeArmon

Chapter 7 bankruptcy gives you a fresh start with your finances. Yes, it’s stressful to consider bankruptcy as a solution. But the right bankruptcy attorney can make the process easier. In today’s blog from Groce & DeArmon, P.C., we look at whether or not you must go through credit counseling before filing for Chapter 7 bankruptcy.

Must You Go Through Credit Counseling First?

Yes. Congress passed sweeping changes to bankruptcy laws with the 2005 Bankruptcy Act. One of those changes included a requirement that all individuals must undergo credit counseling within six months before filing for bankruptcy relief, whether it’s for Chapter 7 or Chapter 13. After filing for bankruptcy, you must also complete a financial management course.

Where Can You Find a Credit Counseling Agency?

The U.S. Trustee Program maintains a list of approved credit counseling agencies for you to look over ahead of filing for Chapter 7 bankruptcy. Many of these agencies are nonprofit organizations, meaning they offer their services for free or at a reduced charge. In general, if your income is 150 percent of the poverty line or less, you are entitled to a fee waiver or fee reduction.

Fees for Credit Counseling

Chapter 7 bankruptcy filers obtain a certificate of completion from a credit counseling agency. The agency often has a fee for issuing the certificate. Any agency you choose must reveal to you any fees for their services before you sign up for credit counseling.

Submit to the Court

Your certificate of completion goes to the court on the day you file for Chapter 7 or Chapter 13 bankruptcy. The certificate lets the trustee know that you completed the course and the bankruptcy can proceed as normal. Groce & DeArmon can help you decide which credit counseling agency is right for you. Many agencies offer online classes, while a few provide in-person counseling for filers.

Bankruptcy Attorneys at Groce & DeArmon, P.C.

The bankruptcy attorneys at Groce & DeArmon, P.C., offer a way to wipe the slate clean with Chapter 7 bankruptcy in Missouri. We’re here to help you through this difficult time. Contact Groce & DeArmon, P.C., or call toll-free 1-800-640-3706 in Missouri or (417) 862-3706 to schedule a free consultation about our services.

Bankruptcy Protection: Five Common Eligibility Requirements

May 15, 2018 By Shari DeArmon

For anyone who has heavy debts that you are currently unable to pay off, bankruptcy is likely something that you have already considered. Bankruptcy protection is something that is available to most Americans who are in over their head or just can’t make any traction with payments.

However, it should also be noted that there are requirements for each individual bankruptcy chapter. In today’s post, Groce & DeArmon, P.C. look at five of the most common eligibility requirements for those seeking bankruptcy protection.

1. Income

This is often the first thing that the court and trustee will look at for someone looking for bankruptcy protection, and it will play a major factor in your eligibility and what chapters you are eligible for. For instance, the first thing a Chapter 7 filer will do is take part in a means test. If your disposable income is too high, you will be ineligible.

2. Previous Debt

Another common requirement for bankruptcy filings is previous debt. While it is possible to file for bankruptcy more than once, your previous debt history will play a role in your eligibility for further bankruptcy protection. For Chapter 7 filers, you will have to come into the proceedings at least eight years out of your previous Chapter 7 discharge and at least six years out of your previous Chapter 13 discharge.

3. Credit Counseling

Another requirement for some bankruptcy filings is credit counseling. The previous and forthcoming requirements have more crossover into each chapter, but this one is more specific to Chapter 7 filings, the most common filing. With this requirement, debtors are required to have gone through credit counseling with a certified entity within 180 days of the filing.

4. Individual Status

Your status will play a big role in which bankruptcy chapter you are eligible for. Some, like Chapter 7, are open for individuals, partnerships, and even businesses. However, some are more specifically for businesses (Chapter 11), municipalities (Chapter 9), or even family farmers and fishermen (Chapter 12).

5. Debt Amount

Lastly, the amount of money you owe will play a role in your eligibility, as well as which chapters you are eligible for. The amount that you owe ties in directly with the amount that you will be able to alleviate via payment plans. So, those with bigger debts will be less likely to qualify for a Chapter 13 filing than a Chapter 7 filing.

Contact Groce & DeArmon, P.C. For Bankruptcy Protection

At Groce & DeArmon, we are committed to providing bankruptcy protection to our clients, specifically through Chapter 7 and 13 filings. Give us a call today at (417) 862-3706 or contact us online for more information.

What Is the Process of Filing Chapter 7 Bankruptcy Without a Lawyer?

July 26, 2017 By Shari DeArmon

Hiring a lawyer is the most costly aspect of filing bankruptcy. With so much debt weighing them down, some people feel they can’t justify paying the bankruptcy lawyer’s fee. They want to try to file either their Chapter 13 or Chapter 7 bankruptcy without legal aid. From a legality standpoint, anyone can do this, but sometimes filing bankruptcy without the help of an established law firm can make the process more difficult than it needs to be. At Groce & DeArmon, P.C., we don’t advise anyone to try filing bankruptcy on their own, but if you do your research, pay meticulous attention to detail, and keep up with all the steps, you can successfully file Chapter 7 bankruptcy.

Determine If You Qualify for Chapter 7 Bankruptcy

You must take a means test before any other step. A means test allows you to determine your eligibility for filing Chapter 7 bankruptcy by taking into consideration your income, the number and value of your assets, and your debt. The less money you make and fewer assets you own, the higher chance that your case will be simple enough to possibly handle on your own.

If you do not qualify for Chapter 7 bankruptcy, then you will have to file a Chapter 13 bankruptcy. This form of bankruptcy takes a more complicated route. Chapter 13 bankruptcy forces you to make a repayment plan that the court must approve. Bankruptcy lawyers trained for this and write repayment plans on a regular basis. They can help you get approved.

Credit Counseling

Before you can properly fill out your bankruptcy paperwork, you must gather all the information you can about your debt. A credit report will tell you exactly what you owe and to whom. Once you have reports from all three major credit bureaus, you will need to talk to an approved credit education and counseling service provider.

Filing Paperwork

After you figure out your debt information and meet with a counselor, you will need to actually file the bankruptcy paperwork. You will need to download specific forms and fill out all the paperwork carefully. If you miss any steps or overlook anything in either this or the previous process, you could miss out on liquidating some unsecured debts.

Meeting the Trustee

After you finish all the paperwork, you will need to meet with the trustee to go over your case. He or she will ask you about your debt, assets, and overall bankruptcy. You need to answer each question honestly, and a bankruptcy lawyer can really help prepare you for this.

Don’t Do It Alone

Though you might be tempted to save money by not hiring a bankruptcy lawyer, working with a law firm will provide you with a simpler, more efficient, and more comprehensive bankruptcy. We streamline the process for you and help you take care of the most complicated aspects of the process. Contact Groce & DeArmon, P.C. to get started on your Chapter 7 bankruptcy.

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