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Yes, you can. More often than not, people who have outstanding debts will have collectors calling them at all hours of the day and night. Their calls can be excessive, their tactics can be rude, and their demeanor can be quite aggressive. And frequently, the collectors will contact friends, family, and your place of work in their attempts to collect on the debt. These tactics are illegal.

The main body of law that addresses this issue is the Fair Debt Collection Practices Act (FDCPA). It is a federal law that lays out what a collection agency must do when it attempts to collect on a debt, and what constitutes a violation thereof. So for example, a collection agency may call your land/home line, but they may not call you on your cell phone. This is clearly laid out in the statute. Therefore, each time you receive a call on your cell phone, the collector has violated your rights. The general amount that the collector must pay you in damages for having violated these rights is around $500.00. Assuming you are like most people, and therefore have a great number of collectors calling you, the amount of damages that may potentially be awarded to you could be quite high.

Another example is the letters that the collection agencies send you. There is certain information that must be included in each piece of mail that they send. For instance, if the letter in question does not clearly indicate that the letter is from a debt collector, and that they are attempting to collect on a debt, the collector has violated your rights. If the collection letter does not indicate that you have the right to ask for validation of the debt, the collector has violated your rights. Each violation is handled by an award of damages (i.e. money) to you.

When you file a Missouri bankruptcy, the court will officially discharge (i.e. knockout) your unsecured debts. The federal government of the United States (by way of the US Constitution) preserves this right, and gives the court system the legal authority to do so. The US Congress may from time to time change or tweak the underlying rules, but the concept remains the same: As a citizen of the US, you have the right to file for bankruptcy.

Of course, what kind of discharge you receive depends largely on which type of petition you file. In a St. Louis Chapter 7 bankruptcy, unsecured debts (like credit cards, medical bills, payday loans) are discharged right away (typically within three to four months of filing). In a St. Louis Chapter 13 bankruptcy, it is possible to have all of your unsecured creditors discharged. But it is also a possibility that you would have to repay some of that debt. The goal, of course, would be to put you in a plan that only required a minimum amount to be paid back (and get the vast majority of it knocked out).

Either way, once the debt is discharged, it’s gone forever. The creditor can never demand payment from you again, and you are under no further obligation to pay for it. Your credit report will reflect this change as well. In fact, once the debts are officially discharged, your credit score will typically jump 20 to 30 points up right away. And of course the ability to rebuild your credit rating even further will be immediate.

Well, it depends on what your intentions are regarding the underlying property (which in the case of real estate taxes is of course the house you live in or use as rental property). If you choose to keep the property, then yes, you will have to make good on any real estate taxes you may have fallen behind on, and any future taxes associated with the property. But if your choice is to surrender the property, then no, you will not be held responsible for the taxes (because the taxes are said to ‘follow the house’).

There is also a difference in how real estate taxes are handled based on which chapter you file. If a St. Louis Chapter 7 bankruptcy is filed, and you want to keep the property, any real estate taxes will need to be paid to the county fairly soon after the petition is filed with the court. Unless of course you surrender the home, in which case you will not be held responsible for the taxes.

If a St. Louis Chapter 13 bankruptcy is filed, and you want to keep the property, then any arrearage will paid off inside the Chapter 13 plan. This spreads the payments out over a period of three to five years. In this way, the tax debt becomes less of a burden, as it gives you a chance to get caught up over a much more reasonable time frame. And as was mentioned before, if you choose to surrender, then the taxes will follow the house and you will not have to pay them.

The answer to that question is a resounding YES!!

Most people with whom I meet all believe the same thing at the initial consultation: That filing for bankruptcy will signal the end of times, and that they will never be able to do anything ever again. That bankruptcy may get rid of their debts, but that they won’t be in a position to purchase or finance another item for the rest of their lives. Well, the exact opposite is true.

To begin with, the courts describe bankruptcy as a ‘fresh start / clean slate‘. It is a chance to wipe the slate clean, and start fresh. It is a chance to pick yourself up, and dust yourself off. And the opportunities to rebuild your credit (in terms of score and rating) will be immediate following the discharge of your debts. In a St. Louis Chapter 7 bankruptcy, you will receive a discharge of your unsecured debts (like credit cards and medical bills) roughly three to four months after filing. Upon receiving your discharge, you can expect your credit score to jump 20 to 30 points up just from that. And then depending on how aggressive you want to be in rebuilding your credit (the credit card companies, for instance, will flood your mail box with applications once you receive your discharge), you can achieve a credit rating that exceeds anything that you had previously enjoyed. But then that’s the whole point: To put you in a position where you can reestablish your financial standing.

No, you aren’t able to do that. All unsecured debts (like credit cards, medical bills, payday loans) must be included in a bankruptcy. In fact, not disclosing these debts could be considered fraudulent (because the court may view such an act as unfair to your other creditors who have been properly included).

When you file a St. Louis Chapter 7 bankruptcy, all unsecured debts will be discharged. But the opportunity to get a new credit card will be available very soon after the discharge is ordered by the court. Once this discharge occurs, you will be flooded with credit card applications. And the reason for this barrage of applications that you will receive is simple: All of your debts will have been knocked out, so on paper, you will look like the most attractive candidate in the world (because you will presumably be able to make monthly minimum payments to the creditor with relative ease). This in turn will raise your credit score over time.

Of course, I’m not suggesting you would run right out and get a bunch of credit cards after you get a discharge in bankruptcy (from debts that probably included a great deal of existing credit card debt!!) You may never want to do that again in your life! But the opportunity will certainly be there.

I’m often asked this question from people who have had a friend or relative who has filed for bankruptcy in the past. They wonder why it is that for some people, it is necessary to pay back their debts, while others only have to pay back a small percentage (or none at all).

Well, the answer is actually pretty straightforward (believe it or not). To begin with, there are two main chapters of the bankruptcy code for individuals and married couples. A St. Louis Chapter 7 bankruptcy involves a discharge of unsecured debt (like credit cards and medical bills), and a St. Louis Chapter 13 bankruptcy is described as a repayment plan over the course of three to five years. If your household income is below a certain level (for instance, the average income (according to the government) for a household of two is: $51,120.00, as of August 2011), then you generally qualify for a Missouri Chapter 7, and will get a discharge of your unsecured debts. If your household income is above that certain level, then you will most likely have to file a Missouri Chapter 13.

If the route that needs to be taken is a Chapter 13, the question becomes, ‘How much do I have to pay back?’ This is of course the very thing that bankruptcy attorneys spend all their time on, because it is our goal to put you in a plan in which you only have to pay back a small percentage. Depending on how many deductions and/or exemptions can be taken in your particular set of circumstances, the monthly payment to the Chapter 13 Trustee can vary quite a bit. So things like how much you pay towards insurance each month (life or medical) become important to know about; and how much tax withholdings are taken from your check each pay period; and how much you contribute monthly towards charitable organizations; and how much your average monthly medical/dental costs are; and how you pay for child care services; and on and on. Because these expenses are used as deductions from you disposable income to show the court that you only have a certain amount left over at the end of each month. And the amount that you need to pay back to your unsecured creditors in a Chapter 13 is largely dependent upon that.

Not if you are in a St. Louis Chapter 13 bankruptcy. The court is very clear when it comes to taking on new debt like a credit card; you simply cannot do it. The reason for this is pretty simple: If you are in a repayment plan to pay back your creditors, then why in the world would the court want you taking out new debt that you would have to repay as well?

Now of course, there are exceptions to this rule. For instance, if your car is totaled in an accident or it just stops running, you will probably need a new means of transportation. And unless you are in a position to buy a car outright with cash, then it is likely that you will have to finance the car. In this scenario, it would be necessary to file a Motion to Incur New Debt (yes, it is literally that fancy sounding). All you would need to do is pick a car out and get a Good Faith Estimate from the dealership (a document that lists the amount to be financed, interest rate, and monthly payment). Assuming the Chapter 13 Trustee does not have any objections to the Motion, you can get your car.

Or another example would involve someone whose job requires that he/she keep a credit card on them to pay for traveling expenses (such as lodging, gas, food, etc.), and the employer then reimburses the expenses that are charged. Assuming that the employer requires the employee to have such a card, the normal prohibition against taking on new debt while in a Chapter 13 is often waived by the court through a similar motion (like the one described above).

Yes, you do have to disclose all personal and real property. This would include things like cars, houses, and time shares. But also stocks, bonds, bank accounts, and intellectual property. Even things like pots, pans, clothes, jewelry and other personal property needs to be disclosed.

Now to be clear, it’s not as if you will be expected to itemize each and every piece of clothing you own, or a description of each piece of furniture. When you file a St. Louis Chapter 7 or a St. Louis Chapter 13 bankruptcy, the court divides personal property into certain categories. For instance, the court has a section for ‘Household Goods and Furnishings.’ This section would obviously include furniture, appliances, dishware, etc. But all the court requires is the garage sale value (not what you originally paid for the items, or what kind of sentimental value you may attach to your belongings). Once the garage sale value is listed, your lawyer will then use certain state exemptions to keep the property safe. These exemptions almost always cover the garage sale value by a good margin.

Of course, making sure that your property is kept safe (and therefore out of the hands of the Trustee) is largely dependent upon what kind of lawyer you hire. The St. Louis bankruptcy attorneys at The Bankruptcy Company have been practicing the specialized area of bankruptcy for over ten years. Our staff is prepared to guide you through the entire process, and all our phone conversations and office consultations are free of charge.

There really isn’t a list of qualifications for someone wanting to file for bankruptcy. I think what most people are wondering when they ask this question is, Can I file a St. Louis Chapter 7 bankruptcy? And the answer to that question is a bit involved.

To begin with, the US Congress decided in 2005 (after much lobbying work on behalf the credit industry, and those sympathetic to their plight) that certain restrictions be applied to those wishing to file a Missouri Chapter 7. In their infinite wisdom, the US Congress (aided heavily by lawyers working for MBNA and JPMorgan Chase, who constructed the language of the bill) decided that a ‘means test’ should be used to determine eligibility. The means test is a list of median income levels for various sized households. For instance, a household of two is said to have a median (or average) income of $51,120 (as of August 2011). If you are a household of two, and the household income is above this level, then the court assumes that you make too much money (whatever that means) to qualify for a Chapter 7.

But even if you do fall above the median income level, that doesn’t necessarily mean that you can’t file a Chapter 7. An experienced bankruptcy attorney can use certain deductions and exemptions to pull you below that level, and get you into a Chapter 7. In the event that you cannot get into a 7, there is the possibility of filing a St. Louis Chapter 13. This chapter of bankruptcy allows you pay back certain debts over a period of time, using a much lower interest rate (and you very often still have the opportunity to get your unsecured debts like credit cards and medical bills discharged as well in a Missouri Chapter 13).

Unfortunately, no. The bankruptcy code describes student loans as non-dischargeable. This means that if you file a St. Louis Chapter 7 bankruptcy, all of your other unsecured debts (like credit cards, medical bills, payday loans, etc.) will get knocked out. But the student loans will still be there at the end of your case. Once your case is discharged, you will need to make arrangements with the student loan companies to get back on some sort of a repayment plan. The good news, however, is that once all the rest of the unsecured debt is discharged, you will be in a much better position financially to pay off the loans over time.

When a St. Louis Chapter 13 bankruptcy is filed, the court handles student loans a bit differently. A Missouri Chapter 13 involves a repayment plan over the course of three to five years, during which time certain creditors are paid back (although it is still possible to receive a discharge of unsecured debt in a Chapter 13). So it is quite possible that part of your monthly payment will go towards the student loans. But regardless of how much of your student loans are paid back during the time you are in the Chapter 13 repayment plan, you are not obligated to make any additional payments to the student loan companies while you are in the plan.

For example, if your monthly Chapter 13 payment is $350 (an amount that is dispersed by the St. Louis Chapter 13 Trustee to various creditors listed in your repayment plan), a portion of this money may go towards the student loans. But you will not then be required to make your regular monthly student loan payment on top of that. The $350 you pay each month to the Trustee will cover the student loan debt (even if your regular student loan payments are higher than $350). This is significant because this in essence gives you a deferment on your regular student loan payments for the next three to five years. Of course, once your St. Louis Chapter 13 bankruptcy is discharged, the remaining balance owed on the student loans will have to be repaid. And much like in the case of a Missouri Chapter 7, you will then need to make arrangements with the loan companies to restart your regular monthly payments.