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As with most situations, this question depends largely on which chapter of bankruptcy you file for. There are different implications involved when you file a Missouri Chapter 7 or a Missouri Chapter 13. Ultimately, if the bankruptcy Trustee decides that he is interested in your tax refund, he/she will demand that you turn it over.

In a St. Louis Chapter 7 bankruptcy, it depends upon when you receive the refund itself. So for example, if you file a Chapter 7 in February, and you have not yet received the tax refund, then there is certainly a good chance that the Chapter 7 Trustee is going to want the money (unless the refund is relatively small, say $800 or less, then he/she will more than likely pass on it). Or if it is December, and you have not yet filed your taxes, but you expect a large refund, then the Trustee is likely to demand turnover. But if you have already spent the refund, and enough time has passed since you initially received it, then it won’t make any difference, because there wouldn’t be anything to turnover.

In a St. Louis Chapter 13 bankruptcy, the Chapter 13 Trustee will expect you to turnover anything above $600 in a tax refund during the time you are in the repayment plan. So for example, if it is the second year you are inside the Chapter 13, and you receive a $1,300 tax refund, the Trustee will demand that you turnover $700 of it ($1,300 – $600 = $700). The $600 is yours to keep for whatever you wish.

Because determining the fair market value of an asset will show whether or not the asset has any equity. If the asset has equity (i.e. value above what is still owed on the loan), then there is a potential that you may have to surrender it in a St. Louis Chapter 7, or guarantee that amount in a St. Louis Chapter 13.

So for instance, let’s say you have a 2010 Honda Accord that is paid in full (i.e. no loan or lien against it). This type of car brings in a Kelly Bluebook value of around $20,000 (as of August 2011). The government provides an individual filing for a Missouri bankruptcy an exemption of $3,000 to cover any equity in a car. In this case, the amount of equity left over would be $17,000 ($20 – $3 = $17).

This is a great deal of equity, and any Chapter 7 Trustee would love to get their hands on the asset so that they could sell it, and use the proceeds to pay towards your unsecured creditors (like credit cards, medical bills, payday loans, etc.) Of course, it is a very rare situation in which an individual filing for bankruptcy owns such a newer car that is paid in full.

This question is somewhat difficult to answer, because I can’t really speak for other law firms and why they might charge one fee as opposed to another. Some charge quite a bit, and some charge only a very small amount.

The real question to ask is whether or not the firms that you are engaging have the knowledge and experience necessary to successfully navigate your case through the bankruptcy process. So regardless of how much you pay in attorney fees, it is far more important to hire a lawyer who knows what they are doing.

But the question still stands, Why does the cost between firms vary so much for filing a bankruptcy? Well, if I’m being honest, the firms that charge bargain-basement prices are probably not going to do a very good job on your case. It’s one of those situations where you get-what-you-pay-for. On the other hand, there are firms that charge an arm and a leg to do even the simplest cases (like a straightforward St. Louis Chapter 7 that does not require an excessive amount of work to get the case filed). These law firms consider themselves to be ‘established’ and ‘well-credentialed,’ and therefore have the right charge higher fees for their services. And if you are willing to pay extra money just to have a big name firm handle your case, then that’s fine. But the excess fees are really going towards nothing more than the logo on the firm’s front door.

A number of things go into making sure that an appropriate amount is paid monthly to the Chapter 13 Trustee. A list of all your secured creditors is necessary, as well as any debts owed to the government such as taxes and back child support, and a determination as to how much of your unsecured debt (such as credit cards and medical bills) that needs to be paid off.

All of this information is gathered by your attorney well before a St. Louis Chapter 13 is filed. It is then the attorney’s job to figure out whether or not you need to pay back any of your unsecured debt (although the goal of course is to make sure that you only have to pay back a small portion of this kind of debt, if anything at all); what type of interest rate needs to be applied; and whether the full amount of any secured debt (like a car loan) should be paid back (because there are certain situations in which only the fair market value of the asset needs to be paid back, as opposed to the balance of the existing loan).

Other factors like attorney fees (which are typically included inside the plan) and the Trustee’s fees (which is based on a certain percentage of the total to be paid over the life of the plan) play a role as well in making the calculation.

I get this question a lot. I think what people are really asking about is whether or not they can keep their car. When I answer that, yes, you can keep your car, they normally look confused and ask, “Then why in the world do we need to put that debt in the bankruptcy?!”

When you file for bankruptcy (whether it is a St. Louis Chapter 7 or a St. Louis Chapter 13), the court requires that all your creditors (whether they are secured or unsecured) be notified of the filing. Unsecured creditors (things like credit cards, medicals bills, payday loans, etc.) are given the lowest priority. Therefore, these debts are discharged and cannot be reaffirmed (with a few exceptions).

Secured debts (like a mortgage or car loan) can be reaffirmed. In other words, if your desire is keep your car or house, you have the ability to continue making payments. The real difference involves which type of bankruptcy you file. If you file a Missouri Chapter 7, the car creditor will ask you to sign a reaffirmation agreement, wherein you promise to continue making payments on the loan after the case is discharged. In a Missouri Chapter 13, the car loan will be paid off as part of your repayment plan. Either way, if you want to keep the car, it is possible to do so.

No, it will not. When you file for bankruptcy (whether it is a St. Louis Chapter 7 or a St. Louis Chapter 13), any student loans that you have cannot be discharged (other examples of non-dischargeable debts would include taxes and child support obligations). So even though you may get all your other unsecured debts knocked out, the student loans will still be there (and you will at some point thereafter have to work out some sort of payment play with the student loan companies).

But the act of filing for bankruptcy does not in and of itself negatively affect your existing student loans. The government will continue to honor their loan, and you can still go to school. And in the future, if you wish to take out more student loans, you can do so.

Specifically, when you file a Missouri Chapter 7, the student loan debts will need to be listed in your schedules. But when you receive your discharge (of things like credit cards, medical bills, payday loans, etc.), the student loan companies will expect you to start paying on their debt immediately.

The short answer is of course yes, you can in fact save your house if you file for bankruptcy. In most cases, an individual has fallen behind on their monthly mortgage payments, and the bank has moved forward with foreclosure proceedings. Once the foreclosure action is filed (by a law firm that the bank has hired), a sale date is set. The sale date is the date on which the foreclosure will take place.

Once you receive notification of the foreclosure (which you will almost assuredly receive by way of a certified mailing), you will notice that the sale date will be roughly 20 to 30 days later. At this point, you can either pay off the balance of the loan (which could be hundreds of thousands of dollars, and therefore doubtful you would have that much lying around), or file a St. Louis Chapter 13 bankruptcy. A Missouri Chapter 13 will stop the foreclosure sale, and allow you an opportunity to pay back the arrearage over a period of three to four years. At the end of the Chapter 13 plan, you will be caught up on the mortgage, and any other secured debts that you owe (like a car loan, or tax debt) will be paid off as well.

But the key is to file the Chapter 13 bankruptcy before the foreclosure sale. Filing a case after the house has been foreclosed on will not save anything (although in this type of situation, in which the house has already been foreclosed on, it might be a good idea to file a St. Louis Chapter 7 in order to get rid of any unsecured debt that resulted from a deficiency at the sale).

Most of my Chapter 7 bankruptcy clients owe more money on their cars than what the car is actually worth. This is known as being “upside down” on the vehicle. However, most of my St. Louis bankruptcy clients need to retain their vehicles despite the fact that they are upside down.

Luckily, Chapter 7 bankruptcy offers a solution. Section 722 of the Bankruptcy Code provides that a debtor can redeem secured collateral for an amount equal to the secured portion of the loan. What this means, is that if you have a car that is worth $6000.00, subject to a $20,000.00 loan, the secured portion of the loan is only $6000.00. The remaining $14,000.00 balance is unsecured. Chapter 7 bankruptcy will allow you to redeem the vehicle for $6000.00.

Sounds great, right? So what’s the catch? Upon receiving a court order of redemption, the Chapter 7 debtor must be able to immediately pay the creditor the value of the vehicle in a lump sum. Obviously, this is an issue for most debtors since they are filing bankruptcy due to financial constraints. Not surprisingly, several companies have emerged which provide redemption loans to debtors. The downside to these loans is that the interest rate is often very high. However, a reputable redemption loan company can give you a detailed analysis of your options. Even with a higher interest rate, many Chapter 7 debtors find that they have lower monthly plan payments.

The following is an approximate timeline of for a straight-forward, no-asset, Chapter 7 bankruptcy case.

1. Meet with an experienced St. Louis bankruptcy lawyer for a free consultation to discuss your situation. Be prepared to discuss your income, debts, and assets.

2. Hire a competent St. Louis chapter 7 lawyer and prepare the documents necessary for your case to be filed. You will likely need to fill out a packet of information regarding your assets, debts, and financial situation over the past few years. You will need to provide proof of income for the six months prior to filing, as well as tax returns, and other financial statements.

There is essentially no limit on how often an individual can file for bankruptcy. The real issue is that there is a limit to how often someone can receive a bankruptcy discharge, which is the reason many people file for bankruptcy. A discharge is when the bankruptcy court wipes out your debt, meaning you are no longer responsible for paying it. Below are the rules regarding how often someone can receive a St. Louis Chapter 7 or St. Louis Chapter 13 bankruptcy discharge:

• Once you receive a Chapter 7 discharge, you must wait 8 years before you are eligible for another Chapter 7 discharge. – (11 U.S.C. 727(a)(8))

• There must be two years between Chapter 13 discharges. -(11 U.S.C. 1328(f)(2))

• There must be four years between a Chapter 7 and Chapter 13 discharge -(11 U.S.C. 1328(f)(1))

• You must wait 6 years after receiving a Chapter 13 discharge to receive a discharge in a Chapter 7 (if under 70% of unsecured claims were paid in the Chapter 13). -(11 U.S.C. 727(a)(9))

A discharge is not the only reason to file for bankruptcy protection, however. Some individuals may file a Chapter 13 bankruptcy in order to stop a foreclosure sale or repossession regardless of whether they are entitled to receive a discharge at the end of the case. There can be a variety of reasons to file for Chapter 13 bankruptcy relief, since Chapter 13 offers powerful protection to debtors while allowing them the opportunity to repay debts, assuming they have not abused the bankruptcy process in the past.
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