What Are The Bankruptcy Credit Counseling Courses?

In 2005, the United States Congress passed a law stating that you must complete a bankruptcy credit counseling class prior to filing bankruptcy. You must also complete a second class prior to the discharge of your debt through bankruptcy. These classes are used to help you learn to better-manage your finances and to teach you financial management at the completion of your bankruptcy case.

Pre-Filing Counseling

You must complete this course through an approved agency and have them provide written proof that you’ve completed the course. In most cases, the counselor will determine that you are unable to fulfill a reasonable repayment plan, which will allow you to proceed with your bankruptcy case. This course must be completed within 180 days before your initial filing date.  The determinations made by the credit counselor is not binding on the bankruptcy case.  In other words, your attorney will help you make the final decision on whether you can or cannot afford to repay debts.

Post-filing class

This class is referred to as financial management courses and are designed to teach clients how to best manage their assets and expenses. This class is different from the bankruptcy credit counseling class.  This class must be done after your case is filed. When filing Chapter 7, you have no more than forty five days after your meeting of creditors to file the paperwork showing you have completed the course. In Chapter 13 bankruptcy, you must file the paperwork no later than the date of your final payment. The course can be taken as early in your case as you choose, but never before the case is filed.

Costs

When signing up for your pre-filing and pre-discharge courses, you may notice that there is a fee for the services. For the pre-filing bankruptcy credit counseling course, you may be able to find agencies that provide the services for very little charge whereas the pre-discharge agencies do not need to be nonprofit although they are required to charge fees on a sliding scale to make it affordable.  You will generally spend less than $75 total for both classes.

Remember that these classes are required.  You cannot file bankruptcy without the pre- bankruptcy credit counseling class.  You cannot get a discharge without the post-filing financial management course.

Inheriting Money or Property in Bankruptcy

The most complicated part of filing bankruptcy can occur if a loved one passes and you end up inheriting money or property in bankruptcy. In many cases, this inheritance will be included in your bankruptcy estate causing you to pay more to your creditors. There are a few instances where the inherited property or money will not be included in the bankruptcy estate.

The 180 Day Rule

This rule states that property inherited within one hundred and eighty (180) days of filing for either Chapter 7 or Chapter 13 bankruptcy, the property will be available to creditors. If you inherit the property after that period and have filed for Chapter 7, the trustee is unable to touch the inheritance. In Chapter 13 filing, the judge may still require you to pay this amount over for the benefit of creditors if you are still under your repayment plan.  As always, if you anticipate inheriting money or property in bankruptcy, or you do actually inherit, call your attorney immediately.

Call your bankruptcy attorney immediately if someone in your family dies.  The rule is based on when you become entitled to inherit – not when you get the money.  So if someone dies within 180 days of your filing, you must turn the money over even if you won’t get it for 12 more months.  If you fails to disclose it or fail to turn it over, you might lose your discharge in bankruptcy.  You could even be prosecuted for not disclosing assets!  If you have any doubt at all, CALL YOUR ATTORNEY!

Spouse

If your spouse is not filing bankruptcy with you and inherits property or money, this generally is not part of the bankruptcy proceedings.  However, if you spouse inherits, he or she should avoid buying things for you that could create issues in your bankruptcy case.   Please talk to your attorney if you spouse inherits money or property.

How to Avoid Losing Your Inheritance

If you are contemplating bankruptcy, talk to your bankruptcy attorney.  Your relative may be able to remove you from a will or life insurance policy until after the 180 days has passed.  This is not fraud nor is it prohibited at all.  This is simply good bankruptcy planning.   Inheriting money or property in bankruptcy can have major ramifications.  Please contact your bankruptcy attorney with questions.

How Soon Can I File?  How much time between bankruptcy cases?

Although the goal is to not have the need to file a second bankruptcy case after completing the first one, you may find the need to file again.  The type of case you filed previously and the type of case you are about to file are the factors in determining how much time between bankruptcy cases. The limitations do not apply if you did not receive a discharge of your debts in the previous case.  Keep in mind that the time between bankruptcy cases is determined by the date you filed your case.

Filing a new Chapter 7 Bankruptcy.

If you previously have filed for Chapter 7 and received a discharge of your debts, you must wait at least eight years from the original filing date to file for Chapter 7 bankruptcy again. If you wish to file a Chapter 7 after a previous Chapter 13 case with discharge, you must wait six years before filing for Chapter 7. The exception to this rule is in the case that your previous 13 case paid at least seventy percent of your unsecured debt and represented your best effort.  In the latter case, there is no restriction to filing a new case.

Filing a new Chapter 13 bankruptcy.

If you wish to file for Chapter 13 bankruptcy after filing a previous case, you will have a waiting period depending on which type you previously filed. If you previously filed a Chapter 7 case, you must wait at least four years before being eligible to file a new case. In the case of a previous Chapter 13 case, you are only required to wait a minimum for two years to file a new bankruptcy case.  When filing a new Chapter 13 case, the time between bankruptcy cases only determines if you can receive a discharge in the new case.  You may file a new Chapter 13 bankruptcy sooner, but not be eligible for a bankruptcy discharge.  This can still be a good idea in many cases.

In the event that none of your debts were discharged in your previous cases, there is no required waiting period. The exception to this rule is in the event that your previous case was dismissed, resulted in a court order prohibiting you from filing a second case, or if your discharge was revoked in your previous case.

Determining the amount of time between bankruptcy cases can be complex.  Call me today to discuss your options!

Rebuild Credit After Bankruptcy!

You have a bigger future. That’s hard to remember sometimes, particularly with sleepless nights and tons of stress.

I understand your situation – harassing phone calls, piles of bills and tons of stress.  The truth of the matter is that all your problems can change in a minute.  Yes, you have made mistakes in the past, and we all have, but the future is all that matters.

The key is to make the right choices from here on out.  Are you committed to that?

If the answer is yes, I can help you.

My law firm can file your bankruptcy, stop garnishment, prevent foreclosure, and help you get rid of your debt – that’s actually the easy part. But what about after that?   What is the next step?  I want to help you figure that out.  How do you rebuild credit after bankruptcy?

I’m committed to making sure that my clients have a future that is bigger than your past. Our clients choose us to handle their bankruptcy in St. Louis because we offer so much more than bankruptcy services.  Bankruptcy itself is the first step.  The next step is just as important.

We have a partnership with 720CreditScore.com.  After we file your bankruptcy, we will enroll you into their $1,000 credit rebuilding program called 7 Steps to a 720 Credit Score.  Our goal is simple, to show you the steps on how to make your life better than it is right now, and to help you rebuild credit after bankruptcy.

This is why our clients hire us, and it’s why you will hire us. Call our office (314-827-4027) now to schedule your free consultation and learn about your bigger future.

As always, I take my job as your bankruptcy lawyer, very seriously.  I want you to get the fresh start you deserve.  I want you to get relief and then rebuild credit after bankruptcy.

Please contact me today to discuss bankruptcy further.  314-827-4027.

Car Purchases and Bankruptcy.

I have many clients who are in need of reliable transportation both before a bankruptcy and after a bankruptcy.  When is the best time to buy?  The answer, as always, depends on several factors.

Car Purchases and Bankruptcy – Chapter 7.

If you are considering Chapter 7, the decision to wait to buy a car is much easier.  Since a Chapter 7 Bankruptcy case is only 3 or 4 months long, you can usually wait for the bankruptcy discharge to help you get a better financing deal.  If you buy a car before you file bankruptcy, you may get a poor interest rate because of your outstanding debts.  If you agree to purchase a car at 25% interest, you will be stuck with that interest rate unless the lender agrees to lower it later.  If you buy the car after your bankruptcy discharge, a lender may see you as a better risk, and give you better borrowing terms.

Car Purchases and Bankruptcy – Chapter 13.

With a Chapter 13 bankruptcy, the analysis is more complicated.  You are entering a 3 to 5 year repayment of your debt.  If you buy a car before you file, you may be stuck with the high interest loan you agreed to.  If you buy it after you file and during the case, you have to find a lender that will lend while you are in bankruptcy, and you have to get court permission.

If you know you have to file for Chapter 13 bankruptcy, you will already be planning for the next 3 or 5 years you’ll be in the case.  You may decide that now is the time to buy a new car.  When you buy that car BEFORE the case is filed, the lender will hit you with a high interest rate because of your poor credit.  If you file your bankruptcy a month later, the U.S. Supreme Court has said that you cannot force the lender to lower the rate on a purchase that recent.  So, you are probably stuck with a bad interest rate.

If you file first and then try to buy a car, you have to jump through some hoops.  Many lenders will not want to lend to you while you are in bankruptcy.  However, I have a list of some that will.  You will also have to obtain a court order.  You have to show the bankruptcy court that you can afford the payments and that the car purchases is necessary.  It is not an overnight process, so if time is critical, it can be a frustrating one.  However, I have successfully gotten many car purchases approved by the court.

Fraud?

Is it fraud to buy a car and then file bankruptcy?  Most people filing bankruptcy understand the concept of fraud.  If you incur a debt on the eve of a bankruptcy filing, the creditor can object to a discharge of that debt.  The analysis is, of course, much more complicated than that.  But remember, you are not buying a new car with the hopes of discharging the debt and returning the car.  You are buying a car with the intention to keep it and pay.  That is not fraud.  If you are keeping the car and you pay it, the creditor will not be concerned.

As I tell all of my clients, don’t purchases a car JUST because you are filing bankruptcy.  If you need a new car – great.  If you don’t, then don’t buy one.  If you have questions, call me to discuss your pending car purchases and bankruptcy.

Please contact me today to discuss bankruptcy further.  314-827-4027.

Sean C. Paul, Attorney, discusses car purchases and bankruptcy

Sean C. Paul is licensed to practice law in the State of Missouri. His practice is located in south St. Louis County. He can help you with your Chapter 7 or Chapter 13 Bankruptcy case.  If you are concerned about car purchases and bankruptcy, call me today. Sean C. Paul will give you the individual attention you deserve. He will meet with you one-on-one to determine how he can help you. If you are considering filing bankruptcy in Missouri, please call today. Sean C. Paul, Attorney at Law Google+ Profile.

Bankruptcy and Tax Refunds.

It’s that time of the year again, and I want to refresh everyone on how bankruptcy affects tax refunds.  Since your assets become property of your creditors when you file for bankruptcy, we must protect, or exempt, the refund, in order to allow you to keep it.  We can often protect a good chunk of your tax refund in bankruptcy.

Tax Refunds in your Bankruptcy – Chapter 13.

In the St. Louis bankruptcy courts, the court has laid down a specific policy regarding tax refunds.  You will get to keep your Earned Income Credit and your Child Tax Credit.  You will also get to keep $1250 for an individual case, and $1500 for a joint case.  As such, many of my Chapter 13 clients will get to keep most or all of their tax refunds during the time they are in bankruptcy.  Of course, you should talk to me or another bankruptcy attorney before you spend your refund to be sure.

Tax Refunds in your Bankruptcy – Chapter 7.

A Chapter 7 bankruptcy is a liquidation.  If you have valuable assets, those could end up going to creditors.  If you are owed a refund the year your file, that could go to creditors to satisfy some of your debt.  However, we can exempt some of that money.  The State of Missouri has said that your Earned Income Credit is exempt from attachment.  You can also protect additional amounts depending on your household size.  Using the available protections, you might be able to keep a large portion of your refund.

Please contact me today to discuss bankruptcy further.  314-827-4027.

Sean C. Paul, Attorney, discusses tax refunds in your bankruptcy

Sean C. Paul is licensed to practice law in the State of Missouri. His practice is located in south St. Louis County. He can help you with your Chapter 7 or Chapter 13 Bankruptcy case.  Since divorce debt and bankruptcy is a complicated area, you should take to Attorney Sean C. Paul. Sean C. Paul will give you the individual attention you deserve. He will meet with you one-on-one to determine how he can help you. If you are considering filing bankruptcy in Missouri, please call today. Sean C. Paul, Attorney at Law Google+ Profile.

Missouri Misdemeanors.

A misdemeanor is a criminal offense considered a lesser criminal act in the eyes of the law. They are less serious than felonies and worse than an infraction. They are punished less severely than felonies and are punishable by a maximum sentence of a year in jail. Crimes classified as misdemeanors vary by state and are ranked. Missouri misdemeanors are ranked from A to C. Here is a breakdown of these crime by category.

Class A Misdemeanors.

Class A misdemeanors are the most serious of this class. Crimes considered Class A offenses include fraud, writing bad checks under $500 and third degree assault. Offenses that fall into this rank are punishable by a maximum of 1 year in a county jail facility and up to a $1000 fine. The circumstances of the case along with criminal history plays a significant role in sentencing.

Class B Misdemeanors.

The second most serious misdemeanors in Missouri as placed into the Class B category. Examples of Missouri misdemeanors include first offense DUI, first degree trespassing and first conviction of animal neglect or abandonment. Class B misdemeanors are punishable by a maximum of six months in a county jail facility as well as a $500 fine.

Class C Misdemeanors.

The final misdemeanor is a Class C misdemeanor. In Missouri, those convicted of a Class C misdemeanor face no more than 15 days in a county jail with or without a maximum $300 fine. Class C misdemeanors in Missouri include first offense driving with an elevated blood alcohol content.
Overall, there are three categories for misdemeanors in Missouri. These categories are Class A, B and C. Class A misdemeanors are the most serious and those convicted can face up to 1 year in county jail in addition to a maximum $1000 fine. Class B crimes are punishable by 6 months in a county jail facility as well as a $500 fine and those convicted of a Class C misdemeanor only face 15 days in jail and a $300 fine. Sentencing depends on a variety of factors including criminal history and the crime itself.

Types of Criminal Offenses in Missouri.

In the United States there are three basic categories for criminal offenses. The types of criminal offenses in Missouri follows the same basic pattern as most states.  These categories are infractions, misdemeanors and felonies. They are determined by the seriousness of the offense along with the amount of time of imprisonment the one being convicted can receive. Once the crime is placed in one of these categories they are further classified as either personal crimes, properties crimes and so on. The three basic categories of criminal offices vary significantly in all aspects. Here is a breakdown of these types of criminal offenses in Missouri.

Infraction.

Infractions, also known as petty crimes, are usually not punishable by jail time and may not require going to court. Those convicted of an infraction are often charged fines. In most cases infractions are pertaining to local laws such as no-parking zones and speed limits.  These types of crimes are generally handled at the municipal court or “night” court.

Misdemeanor.

Misdemeanor crimes are not as severe as felonies. These crimes have a maximum sentence of a year or less in jail. Misdemeanors are crimes include anything from simple battery to driving under the influence, as long as no one is hurt. Although a crime may be categorized as a misdemeanor initially, it can rise to a felony in court.  These types of offenses will be handles by the Circuit Courts in Missouri.

Felony.

A felonies are the most serious criminal offenses in Missouri. This classification of crimes are punishable by incarceration for more than a year and in some cases, life in prison. Convicted felons also lose civil rights and in some states, the right to vote. Crimes that can be categorized as felonies include murder, kidnapping, and armed robbery. In addition to the person who committed the crime, anyone who aided in the felony can also be charged and be sentenced to time in prison. Felony classifications vary by state and each crime has its own minimum and maximum sentence.  In Missouri, these crimes are also handled by the Circuit Courts.

Overall, there are three basic types of criminal offenses in Missouri.  These are infractions, misdemeanors and felonies. Felonies, being the most serious type of of crime are punishable by more than a year of prison. Those charged with a misdemeanor only face a maximum sentence of a year and infractions simply require a fine to be paid in most cases.

Sean C. Paul, attorney, discusses Criminal Offenses in Missouri

Sean C. Paul is licensed to practice law in the State of Missouri. His practice is located in south St. Louis County. He can help you with your criminal defense case. Sean C. Paul will give you the individual attention you deserve. He will meet with you one-on-one to determine how he can help you. If you are in need of criminal defense, call today!  314-827-4027. Sean C. Paul, Attorney at Law Google+ Profile.

Who Counts as a Dependent in bankruptcy?

This is an important question.  The amount of expenses you have may determine whether you have to file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.  Since having dependent members of the household is an expense, then we have to determine who can be counted.

Analysis of dependents in bankruptcy.

Firstly, I will not be too concerned about the IRS rules for counting a dependent.  While your tax returns may be a good indicator of your household size, it may not be the end of the analysis.  Sometimes, a dependent in bankruptcy context can be larger than for taxes.  Many of my clients have non-traditional families.  This is especially true with the bad economy.  Sometimes, wage-earners take care of grandchildren, nieces and nephews, and sometimes even their parents!  I may be able to count them as dependents in bankruptcy under Chapter 7 or Chapter 13.  Thus, with a larger household size, you may qualify for Chapter 7 even if you have a larger income.

Minor Dependents.

Any minor children under 18 where you pay a portion of their living expenses will listed on the form. This includes your children who live with you; your spouse’s children who live with you and either of your children who don’t live with you all the time, but for whom you pay a chunk of their support. When you list minor dependents on Schedule I don’t use first or last names; just insert their relationship to you.

Other Dependents.

Like I already mentioned, other people may be dependent on you for support.  If that is true, talk to me about whether we can count them as a dependent in bankruptcy.  If you support your mother (meaning she can’t support herself financially), or someone else who isn’t a “child,” we will determine if that person is a dependent.

Where is your office located?

My office is located in South St. Louis County near the intersections of Gravois and Weber Roads. Please call me at 314-827-4027 or use my contact form.  I offer a free bankruptcy consultation.

Sean C. Paul, Attorney, who is a dependent in bankruptcy?

Sean C. Paul is licensed to practice law in the State of Missouri. His practice is located in south St. Louis County. He can help you with your Chapter 7 or Chapter 13 Bankruptcy case. Your expenses are based largely on who you take care of, so talk to Sean C. Paul about who counts as a dependent in bankruptcy. Sean C. Paul will give you the individual attention you deserve. He will meet with you one-on-one to determine how he can help you. If you are considering filing bankruptcy in Missouri, please call today. Sean C. Paul, Attorney at Law Google+ Profile.