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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.

Pros and Cons of Filing for Chapter 13 Bankruptcy

July 30, 2018 By Shari DeArmon

Chapter 13 Bankruptcy: Pros and Cons

Last week, the Groce & DeArmon, P.C. blog looked at the pros and cons of Chapter 7 bankruptcy, how filing under Chapter 7 affects your credit score, and what the recovery time would look like. While Chapter 7 is the most common chapter of bankruptcy, Chapter 13 bankruptcy arguably presents more benefits because it doesn’t require the loss of property.

In today’s post, Groce & DeArmon, P.C. will take a look at Chapter 13 bankruptcy and break down the pros and cons of this chapter.

Pro: You Don’t Lose Property Under Chapter 13 Bankruptcy

This is the most obvious benefit of utilizing Chapter 13 over Chapter 7. While Chapter 7 will ultimately end with a discharge, it also does so at a higher cost than Chapter 13 when considering personal property. Chapter 13 allows debtors to attempt to pay off their debt before forcing them to foreclose or have their belongings repossessed.

Con: It Ties Up All Of Your Extra Cash

This might seem like a petty thing to be concerned about, but it is something to consider nonetheless. When you file under Chapter 13, you have to make your payments out of your disposable income, which is the money you have left over after things like food, shelter, and water. During your repayment period, the rest of the money that you earn from your paycheck will be put towards your debt.

Pro: Flexibility With Payments

Unlike other chapters of bankruptcy, those who file under Chapter 13 will be given a longer leash with payments. You will have more time to repay your debts, which means that the immediate financial burden when paying through Chapter 13 bankruptcy will be less than with Chapter 7 or other forms of bankruptcy.

Con: You Will Be Paying Off Your Debts Longer

While you get flexibility with the payment plan strategy implemented through Chapter 13 bankruptcy, you will also be paying off your debts much longer than you would under Chapter 7. Under Chapter 13, it can take up to five years to pay off your debt while it takes as little as three months to pay that debt off under Chapter 7. While that is preferable to losing property, you must consider the length of time you will spend under this chapter and whether having very little disposable income for a long period of time is realistic for you and your family.

Contact Groce & DeArmon, P.C. For More Information

Deciding which chapter to file when looking at bankruptcy is a big decision. At Groce & DeArmon, we want to help make that decision easier on you. For more information, give us a call at (417) 862-3706 or contact us online today.

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.

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