St. Louis Bankruptcy Lawyers Blog

No, it is not difficult or hard at all. The process can seem a little daunting at first, but that is mainly due to people's (understandable) anxiety about filing in the first place. So long as you hire an experienced, knowledgeable firm to handle your case, you should be just fine.

The basic idea behind filing for bankruptcy in Missouri or Illinois is disclosure. If you take the time to properly disclose all pertinent information to the court and Trustee, you have already won half the battle. This means that you must make the court aware of any real estate that you own (house, land, or time share), of any personal property (clothes, furniture, or appliances), all sources of income (wages from a job, Social Security Income, unemployment benefits, or bonuses), and a full list of all your creditors (whether they are secured, unsecured, or priority). Disclosing all of your property (real or personal) does not mean that you will lose these items. More often than not, you will be able to keep your assets. But your initial primary duty is to simply let the court know what it is that you own.

When it comes to revealing your sources of income, it can be handled most of the time by giving your attorney all of your paystubs from the previous six (6) months. Once this data is entered, your attorney can figure out how much your household income is for the year. This will determine whether you are above or below the 'median income level' for your particular household size. So for instance, the average or median income for a household of four is: $67,255. If your household income is under this amount, you are considered to be a 'below median income' house. If your household income is over this amount, you are considered to be an 'above median income' house. This distinction is crucial, because it can make the difference between filing a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy.

There is only one courthouse appearance that you will be required to attend when you file for bankruptcy. It is called the '341 Meeting of Creditors.' It is a hearing, conducted by the Bankruptcy Trustee, at which your creditors may attend to ask you any questions about the debts that you owe. However, it is very rare that a creditor makes an appearance at these hearings. Mainly, it is a chance for the Trustee to ask you a series of questions (he/she will ask you to state your name and address, your employer's name and address; he/she will ask you if you have listed all of your debts, if you have listed all of your assets, and if you have left anything out or made any errors). The meeting usually takes about five (5) minutes to conduct, and then you are out the door.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been assisting people get through the bankruptcy process (from start to finish) for years. Our initial consultation is free of charge, so call today to set an appointment!!

No, it may not. And if the debt collector does in fact ask you to make this kind of a payment, then it has violated federal law and your consumer rights. There is, however, a remedy for this behavior on the part of the collector.

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that regulates what a collection agency can and can't do when it attempts to collect on a debt. These are strict limitations, and if the collector infringes upon your rights by violating the act, then it must compensate you for its wrong-doing. One of the things the collector cannot do is ask you to send it a post-dated check (or other financial instrument) to go towards a debt that you owe. They also cannot accept a post-dated check that is more than five (5) days out. Specifically, the FDCPA states in Section 808(2) & (3):

"A debt collector may not use unfair or unconscionable means to collector or attempt to collect any debt. ... the following conduct is a violation of this section: (2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit; (3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution. "

This last subsection (3) is a bit more in depth as you can see. Because sometimes the collection agency will threaten you with some sort of legal action unless you write a post-dated check. But then this is exactly why the act was written; to prevent this type of conduct from happening.

Although the act is very specific in its language, there are plenty of agencies that will violate it frequently. If such a violation occurs, it is the collector's duty to not only cease the conduct, but also to compensate you for it. The maximum amount of damages to you would be $1,000. And the other nice thing about the FDCPA is that if in fact a violation is shown to have occurred, the collection agency has to pay your attorney fees. This means that there is no upfront cost to you to have the case filed.

In addition, it may be a good idea to look into whether or not you may need to file a Missouri or Illinois bankruptcy. A St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy can help get rid of your debts altogether, and get you back on the road towards financial freedom. The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been making sure our client's rights are protected for over ten (10) years. The initial consultation is free of charge, so call today!

Yes, there are a few debts that cannot be discharged in either a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy. These specific debts are described as non-dischargeable, and will therefore remain as debts that you will be obligated on. But understanding which exact debts these are, and what implications it has for your particular filing can be crucial.

When you file a Missouri or Illinois bankruptcy, you are under an obligation to list out all of your creditors (whether they are secured, unsecured, or priority in nature). Once each debt is properly classified, it is then the individual creditor's job to file what is called a Proof of Claim. This is a document that is filed with the court, listing the creditor's pertinent information (such as its name, address, and representative), the amount owed, account number and date of indebtedness, and depending on what kind of debt it is, documentation proving that the debt actually exists (like a Deed of Trust for a house loan). You and the Trustee are given an opportunity to examine the Proofs of Claim that are entered, and file an objection if it is believed that the POC was submitted in error.

If the debt is in the nature of a Domestic Support Obligation, then it is non-dischargeable. DSO's are things like child support (current, or what has fallen into arrears), maintenance, and spousal support (what used to be called alimony). Most tax debt is considered to be an obligation for which you may not receive a discharge. There is an exception, however, for income tax debt that is three years or older and was timely filed. If that is the case, then it is possible to get that portion of income tax debt discharged along with the rest of your unsecured debts (such as credit cards, medical bills, and payday loans). Student loans are another example of that which cannot be gotten rid of in a bankruptcy. These debts (almost always owed to the federal government) are given a status of protection by the bankruptcy court.

In addition, debts that were incurred (or assigned) by way of a divorce decree and/or judgment are non-dischargeable in a Chapter 7. However, it is possible to get such debts discharged in a Chapter 13. And finally, those debts which were procured by way of fraud are considered non-dischargeable. So if you were to take out a credit card knowingly using a different social security number other than your own, it is almost certain that this particular debt will be adjudged non-dischargeable.

The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been making sure that people know their rights, obligations, and options for over ten (10) years. Our goal is provide you with the most pertinent information you need in order to make the best decision for you and your family. The initial consultation is free of charge, so call today to set an appointment to learn more!

Yes, of course. When you file a Missouri or Illinois bankruptcy, having a large type of monthly expense is perfectly acceptable. However, if the expense is quite a bit larger than what would normally be spent by a household of comparable size, the United States Trustee may ask for documentation to prove up the expense. So long as you are able to provide such documentation, the expense you listed should be fine.

When you file a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy, the government allows you to list out your typical monthly expenses that are incurred by you and your family. This allowance is made because the government recognizes that such expenses are normal, and should therefore be taken into account. This is significant because being able to include these expenses puts you in a much position to pass the "Means Test." The Means Test is a mathematical formula that was devised by Congress in 2005 to determine who is and who is not eligible to file a Chapter 7. If, after all sources of income and all allowable expenses are taken into consideration you fall below the median income level for your particular household size, you may file a Chapter 7 (so long as you have not filed such a petition in the previous eight (8) years).

This is why an expense such as that paid towards medical and dental costs each month is so relevant. So let's suppose that you are a household of three (you, your spouse, and your child). Between you and your spouse, you only expend the normal amount on medical or dental costs each month (say around $50.00 per month). But your child has a couple of different medical issues that require a larger portion of your expenses to go towards healthcare (say around $300.00 per month). If this is in fact the case, then you can rightfully state that the total amount your household spends each month on medical-related expenses is about $350.00.

Your attorney can use this particular expense on the above-mentioned Means Test. By doing so, your disposable monthly income will be reduced accordingly. This can have a measurable effect on whether or not you pass the Means Test. In fact, but for the medical expense of $350.00, it may very well be the case that you do not pass the Means Test (and without it, you may very well have to file a Chapter 13 bankruptcy). The UST may very well ask for documentation to prove up the numbers, but this can usually be taken care of by supplying your attorney with medical records, past bills, or even a list of recent expenses from your local drug store.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been providing quality, expert legal services for over ten (10) years. Our goal is to get you back on your feet, moving in the right direction, and given a second chance at life. Call today!

Because the Bankruptcy Code makes it clear that if you are an above-median household, and you are filing a Missouri or Illinois Chapter 13 bankruptcy, then you have to commit to a five (5) year plan. Other situations allow for varying lengths of time, but that is the general rule.

When you file for bankruptcy in the state of Missouri, it is necessary for you to disclose any and all sources of household income over the previous six (6) months before filing. This would include obvious things like money earned from your (and/or your spouse's) job, like wages, bonuses, or other earnings. But it would also include monies from the government, such as unemployment benefits, Social Security Income, and food stamps; or money received from rental units, part-time jobs, pension/retirement funds, and anything else that you may have made money from over the entire six months prior. All of this data is collected by your attorney, and entered into what is called a "Means Test". This test determines whether or not you are above or below median income for your particular household size.

For instance, according to the federal government, the average or median income for a household of four (4) is: $67,255.00. If your household income exceeds this level, then you are considered to an above-median income household (in other words, the total income earned in your household per year is above the national average for a family of four). When you file a St. Louis Chapter 13 bankruptcy, and you are above median, then you are required to enter into a five year repayment plan. If your household income level is below the national median, you can choose to do either a three (3), four (4), or five year plan.

Of course, doing a five year plan does have its advantages. You are in the plan for a longer length of time, but this means that the amount you pay each month is smaller than if you were in a plan of shorter duration. A longer plan will also improve your credit rating/score that much more as well (this is because the Trustee will be making monthly, methodical payments to the creditors described in your Chapter 13 plan; these monthly payments will be reflected in the credit bureau's reports). And a lengthier plan also means that you are under the bankruptcy court's protection for a full five years, during which no creditors can contact you at all.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been making sure that our clients fully understand the issues and complexities surrounding their particular case. Our aim is to help guide you through the entire process from start to finish, and get you the fresh start / clean slate that you deserve so that you can move forward with life, and start planning for the future.

Yes, you can. But there are certain details that you must first be sure of before you file so that you know for sure if those assets will be safe. This is why it is so very important to hire an experienced attorney who knows the ins and outs of bankruptcy law. Because unfortunately, there are many people each year who file cases in which they lose valuable assets when it was not necessary for it happen.

When you file a Missouri or Illinois bankruptcy, the court requires that you disclose all of your assets, whether this property is personal in nature (like books, clothes, or your checking accounts) or real (like your house, land you own, or a timeshare). Once these disclosures are made, it is then necessary to provide the court and Trustee with what you believe to be the fair market value of these assets. For personal property, it is sufficient to provide 'garage sale' value. But for real property, you will need to establish what the market value is of your home. This is not an exact science, but you should keep in mind that when you make a determination as to the value of your home, you are looking at the value of your home 'as is'. In other words, you do not want to think about what your house would be worth if you got the roof fixed and leak in the basement repaired; you also want to take into consideration what other houses in your area are actually selling for; and you will want to look at what at the most recent assessment the county has made.

With an automobile, you will also want to take stock of the current condition of the vehicle(s). For instance, if it has ever been in an accident before (even if was subsequently repaired); or if there is existing damage to the interior or exterior of the car; and of course what value publications such as the Kelly Blue Book give to it (although the values represented in this book do not always paint an accurate picture of the car's worth).

So long as there is not a great deal of equity in the asset, then you will most likely have no trouble keeping it. For example, the state of Missouri gives you an automobile exemption of $3,000. This means that you can exempt up to $3,000 of any equity that may exist in the vehicle. So if you have a loan balance of $10,000 on your car, and the fair market value is $13,000, then there is in the eyes of the court no equity (10,000 car loan + 3,000 exemption = 13,000; thus, the $3,000 exemption wiped out any equity that may have existed on paper). In this situation, there is nothing the Trustee can do with the automobile. So if you want to keep it, you would just continue you making payments on the note after you file a St. Louis Chapter 7 bankruptcy (or in the case of a St. Louis Chapter 13 bankruptcy, the car loan would become part of your monthly payments to the Trustee).

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been making sure our clients receive the best bankruptcy legal services available. Our initial consultation is free of charge, so call today!!

No, that is not true at all. There is no debt total that you must reach in order to qualify for a Missouri or Illinois bankruptcy. All that is necessary is your decision, based on all the information that you have attained on the subject, to file the petition for relief.

I am frequently asked by clients whether or not they should in fact file for bankruptcy. And to be honest, there are occasions when I will look at their debt levels, income earned, and equity in their assets, and tell them that, no, they do not need to file for bankruptcy protection. A good lawyer can look at your information, and honestly tell you if it is in your best interest to file such a case.

But more often than not, it is the individuals who believe that they absolutely do not need to file that are in need of relief the most. I am not in the business of trying to convince someone that they should file for bankruptcy, but there are any number of times when I have had to tell someone that the best and only option at this point is pulling that trigger. Most of the time, the apprehension comes from the stereotype that is attached to someone who files. There is a feeling in society that if you file for bankruptcy, this means that you are a deadbeat, or that you cannot handle your finances, or that you are ill-equipped to manage your money. This kind of stereotype comes largely from the credit industry. They of course have a vested interest in you not filing for bankruptcy, so they put out a lot of bologna information about the effects of filing.

However, the United States government describes the bankruptcy process as a "fresh start / clean slate". It is a chance to wipe the slate clean, and start life over fresh. It's a chance to get rid of the burdensome debt that has been dragging you down, causing you stress, and affecting every other aspect of your life. And the positive effects of filing for bankruptcy can be seen and felt immediately. No longer can the creditors call you on the phone and harass you day and night. No longer can they send you pushy letters demanding money. No longer do you have to deal with the threat of a wage garnishment, a bank levy, or a lien against your property. You can begin to rebuild immediately, and look towards the future with optimism.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been getting rid of people's debts for over ten years. Whether it is St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy, we want to make sure that you keep all of your personal belongings, get the fresh start you deserve, and put you in a position reclaim your dignity. Our initial consultations are free of charge, so call today!

That is an excellent question. But the answer may surprise you.

To begin with, the area of law that regulates what a debt collector can and cannot do when they attempt to collect on a debt is the Fair Debt Collection Practices Act (FDCPA). This is a federal statute that makes it very clear what is a violation of someone's consumer rights. In fact the language of this law is so clear on its face that it is difficult to see how anyone could 'accidently' break the rules found within it. But break the rules they do (with frequency).

So why is this the case? Well, most people have never even heard of the FDCPA (chances are, this is the first time you have ever read about it). And even if people know that there is probably some kind of protective regulation out there making some the tactics used by collectors unlawful, most individuals do not pursue any sort of recourse. They believe that it will be too time consuming, or costly, or that there won't be a satisfactory outcome anyway.

But the main reason why the collection agencies flout the law with such regularity is because of this fact. They assume that you will not do anything about their threats, or foul language, or calling you endlessly. In fact, the debt collection industry is so sure that you will not exercise your rights, that they have factored into their cost of doing business the possibility of someone suing them for FDCPA violations maybe only a few times a year. In other words, they believe that since on average only a few people will actually call them out for their tactics per year, they factor that cost into their yearly budgets. That's like having a staff meeting at the beginning of the business year, and your boss telling you, "Good news! Only three people sued us last year for threatening to take them to jail for not paying their debts!! That means we got away with breaking the law 98% of the time. So this year, part of our budget will include the expense of paying out on three or four claims against us. Now go out there, and crack some skulls!!"

But it doesn't have to be like this. You have rights, and you have every right to exercise them. For instance, if a collector leaves a voice message on your phone, but does not properly identify themselves as a debt collector, they have violated your rights. You now have rock-solid evidence (the recorded message) of this fact. And now they can be properly sued for their conduct. The damages to you is usually about $1,000, and the collector has to pay your attorney fees (this means no upfront cost to you).

The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been protecting people's rights against bad debt collectors for years. In addition, we can take care of the rest of your debt by filing a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy. Our initial consultation is free of charge, so call today!

Then they have clearly broken the law. This is a somewhat common tactic used by some debt collectors in their (not so noble) attempts to get money out of you. It is a shame that such tactics are resorted to, but it happens all the time. The problem, of course, is that it is completely unlawful.

The body of law that governs the activities of the collection market is the Fair Debt Collection Practices Act (FDCPA). It is a federal statute that lays out precisely what a collector can and cannot do while collecting on a debt. The language of the law is very straightforward, but it is amazing how frequently it is broken. For instance, Section 806(6) of the act state that, "... the placement of telephone calls without meaningful disclosure of the caller's identity" is a violation. Or Section 807(1), which states, "The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof" is a complete violation of your consumer rights.

This means that if a collection agency calls you and states (or implies) that they are acting under the authority of the local police, they are lying through their teeth (and more importantly, breaking federal law). So long as such a violation can be shown to have happened, the damages to you are monetary (usually about $1,000). The other great component of the law is that the collector has to pay for your attorney fees. This means that there are no upfront costs to you for having an attorney file a case for you.

In addition, it may also be a good idea to look into whether or not you may need to file a Missouri or Illinois bankruptcy. Individuals dealing with a debt collector are also frequently trying to juggle many different kinds of debt all at once (or even several different collection agencies). In the case of a St. Louis Chapter 7 bankruptcy, all of your unsecured debt (like credit cards, medical bills, payday loans, deficiencies from a repossessed car, etc.) is all discharged (i.e. knocked out forever). With a St. Louis Chapter 13 bankruptcy, things are a little different. A Chapter 13 is described as a repayment plan over the course of three (3) to five (5) years, during which certain debts are paid back. These debts would include mortgage arrearage (in other words, the amount you have fallen behind on your house), car loans, tax debt, and back child support. It is also possible to strip off a second mortgage from your house in a 13 (if the conditions are right), cram down the amount owed on your car to the actual value of the vehicle (instead of the current balance), and still get rid of your unsecured debt at the same time.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC want to make sure that your consumer rights are protected against the bad dealings of dishonest collection agencies. Our goal is to get you the justice you deserve, get the debts taken care of forever, and set you on the path towards financial success.

No, they may not speak direct to someone other than yourself (or your attorney) without your express permission. And if they do, they are in violation of the law.

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that regulates what a collection agency can and cannot do in their attempts to collect on a debt. The law spells out precisely what is unlawful conduct on their part. The most surprising thing about the whole thing is the number of people out there who are not even aware of the fact that such consumer protection exists at all. Most people think that since they owe the debt, they must endure the non-sense that the collectors spew.

So let me give you an example: Section 805(b) states that, "... without the prior consent of the consumer given directly to the debt collector, or the express permission of the court of competent jurisdiction, or as reasonably necessary to effectuate a post-judgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector."

In plain English, this means that if the collection agency calls your mother-in-law about some debt you owe from five years ago, and you have not spoken to her in ten years, then the collector has violated your (and probably her) consumer rights. So long as such a violation can be shown to have occurred, the remedy is for the debt collector to pay you damages (usually about $1,000). The other nice thing about the act is that the collector has to pay your attorney fees if a violation is proved. This means that there is no upfront cost to you to have the case filed.

In addition, you may also want to consider filing a Missouri or Illinois bankruptcy. Depending on your debt levels, a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy may prove to be beneficial for your long term interests. This type of filing wipes away your debts completely (in the case of a Chapter 7), or allows you to pay back certain debts over a period of time (like with a Chapter 13). The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been protecting people's rights against the bad deeds of creditors for over ten years. Our goal is to get you in the best position possible so that you can begin to rebuild your life, and back onto the road toward financial freedom. The initial consultation is free of charge, so call today!

No they cannot. And if they do, they are in violation of federal law.

The body of law that regulates what a collection agency can and cannot do in their attempts to collect on a debt is the Fair Debt Collection Practices Act (FDCPA). This statute lays out with specificity what is lawful and unlawful conduct. For instance, it is not lawful for a debt collector to threaten you with a law suit, or make it seem as if you have committed some sort of crime, that they are going to report the debt to the credit bureau, or that they are going to garnish your wages. The only time a collector may properly make such a threat is if they have already gained the original creditor's permission to do so (which is never), and they have the petition for breach of contract already prepared in hand to file against you. Otherwise, it is simply an idle threat that is most likely being used to intimidate you into making a payment (because who wants their wages garnished when they are just barely making it by as it is).

If in fact such a violation occurs, and sufficient facts can be shown, the collection agency will have to pay you damages (usually in the amount of $1,000). In addition, the statute provides that any and all attorney fees must also be paid by the debt collector. This means that you will not have to pay any upfront costs for filing suit against a collector for their unlawful activity.

Depending on what other kinds of debts you are dealing with, it may also make sense to look into whether or not to file for bankruptcy protection. A Missouri or Illinois bankruptcy can take care of the rest of your unsecured debt (like credit cards, medical bills, payday loans, old utility bills, etc.), and/or pay off your secured debts (such as mortgage arrearage, car loans, tax debt, or back child support). A St. Louis Chapter 7 bankruptcy immediately knocks out the debts; a St. Louis Chapter 13 bankruptcy is a repayment plan over the course of three (3) to five (5) years during which certain debts are paid back.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC want to make sure your consumer rights are protected. If a collection agency is violating your rights, we want to make that collector compensate you for the damage done, and get rid of the underlying debt. This in turn gives you the opportunity to move forward with life, and rebuild your credit heading into the future. Our initial consultation is free of charge. So call today!

Only certain kinds of debts are paid back in a St. Louis Chapter 13 bankruptcy. These would include mortgage arrearage (in other words, the amount of money you have fallen behind on your house payments), car loans, tax debt, back child support, and sometimes a portion of your unsecured debt (like credit cards, medical bills, and payday loans). But the exact amount you pay back per month depends on a several key factors.

A Missouri Chapter 13 bankruptcy is described as a repayment plan over the course of three (3) to five (5) years during which you pay a certain monthly amount to the Trustee. The Trustee then distributes these funds to the various creditors listed in your Chapter 13 plan. At the end of the plan, all the remaining unsecured creditors are discharged (i.e. knocked out forever). This in contrast to a St. Louis Chapter 7 bankruptcy, where all the unsecured creditors are discharged right away.

The main reason why someone would file a Chapter 13 would be because they have fallen behind on their mortgage, are risking foreclosure, but are not in a position to come current on the note right away. Filing a Chapter 13 will stop the foreclosure sale from going through, and allow you pay back the arrearage over a period of years (which is far better than coming up with the funds immediately). Another major example would be a case in which your car is repossessed. A 13 will allow you to get the car back, and pay off the balance of the loan with a much better interest rate than you are probably handling right now. In addition, it may also be possible to cram down the amount owed on the car to the actual fair market value of the vehicle. This can often end up shaving several thousand off of what you owe.

A Chapter 13 will also stop all garnishments and bank levies, freeing up that money, and allowing you to spend it as you see fit. As for the unsecured debt that you owe, the repayment plan has provisions for this as well. But how much of this debt you pay back depends greatly on what your household size and income is. An experienced lawyer can make sure that the majority of this unsecured debt (if not all) is discharged without having to pay back a dime.

Once all of these factors are taken into consideration, and the amounts are calculated, these debts are reduced to a monthly, consolidated payment that you make each to the Trustee. The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC want to make sure that you understand how each chapter of bankruptcy works, and put you in the best position possible moving forward. Our goal is to get rid of the debt you no longer want, keep all the assets you wish to retain, and get you the fresh start / clean slate that you deserve.

That depends on which type of creditor you are speaking with. Different rules apply for the original creditor and collection agencies. It may very well be that the one of them (or both) has violated your rights.

When you fall behind on your debts, the creditor will no doubt start calling you to demand payment and/or send you letters. So long as the conduct of the creditor does not rise to the level of criminal activity (like you are physically threatened, or your property is damaged as a result of their attempts to get money from you), then the original creditor can do just about whatever they want. That's right. The original creditor can do things like: come to your home and knock on the door to demand money; call you as many times during the day as they wish; send you letters threatening law suits, late fees, charges, and reporting the debt to the credit bureau; pretty much anything that is not criminally related. If you were to inform the original creditor that your intent is to file a Missouri or Illinois bankruptcy, they may or may not stop calling you (even if you give them your attorney's information). Although it is always a good idea to give the original creditor this information, because this may cause them to stop contacting you.

If the debt has been passed on to a collection agency, the rules change dramatically. The area of law covering this activity is the Fair Debt Collection Practices Act (FDCPA). This statute regulates what a debt collector can and cannot do in their attempts to collect on a debt. For instance, if a collector calls you, and you notify him/her of the fact that you are represented by an attorney for the purposes of a bankruptcy, and they continue to contact you thereafter, they have violated your consumer rights under the act. The damages that have to be paid to you are in the range of $1,000, and they can no longer demand money from you. In addition, the act states that if a violation can be shown to have occurred, the collection agency has to pay your attorney fees. This means that there are no upfront costs to you (which is a nice little bonus!!)

Depending on how much total unsecured debt you have (whether it is credit cards, medical bills, or payday loans), you may also wish to look into filing a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy. These types of filings can take care of the rest of your debt, and put you in a much better position moving forward. The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been making sure our client's rights are upheld for over ten years. We want you to be aware of all your options, know your state and federal rights, and how filing for bankruptcy will improve your standing in life.

Yes, it does. And depending on how quickly you get your Missouri or Illinois bankruptcy filed, you can actually prevent the creditor from taking any action at all (so as to avoid any money being garnished from your pay checks).

The filing of a bankruptcy is accompanied by what is called an Automatic Stay. This is a fancy way of saying that everything stops. All creditor activity must immediately cease, including phone calls and letters. This Stay also extends to anything awarded to the creditor by way of a hearing. When a creditor sues you for breach of contract on a debt that you owe, the judgment from the court allows the creditor to do one of three things: 1) garnish your wages; 2) levy your bank account; 3) place a lien against your property. The creditor can execute one of these options, or it can do all three at once. The most likely, of course, is the wage garnishment. The creditor simply sends your employer the necessary documentation, and the payroll department begins to deduct.

But once a bankruptcy is filed (whether it is a St. Louis Chapter 7 bankruptcy, or a St. Louis Chapter 13 bankruptcy), the garnishment must end. Your bankruptcy attorney simply notifies the creditor's attorney of this fact, and that attorney then sends a Release of Garnishment to your payroll department. In addition, the underlying debt is discharged, along with the rest of your unsecured creditors (whether they be in the form of credit cards, medical bills, payday loans, deficiencies from a repossession or foreclosure, etc.)

Many people wait until the garnishment (or bank levy) hits before they take any action. But of course, you may file bankruptcy at any point (in other words, you need not wait until the garnishment has taken effect). For instance, if a bankruptcy petition is filed prior to the creditor receiving a judgment in court, the breach of contract action the creditor filed against you must be withdrawn. In this scenario, there would never even be a court hearing in the first place. Or if you know that you are going to be filing for bankruptcy, but have not yet been able to file it (because you are still coming up with the fees to pay for it), you can always make an appearance and ask the judge for a continuance. This pushes the hearing to date sometime in the future, which gives you more time to get your bankruptcy filed.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been getting rid of wage garnishments for quite some time. Our main goal is to stop the creditor from taking any more money from you, get the underlying debt resolved, and put you on the road towards financial freedom. This is primarily accomplished by the fresh start / clean slate that the court gives you once you file your Petition for Relief. Initial consultations are free of charge, so call today!!

I hear this comment a lot from clients. The level of stress that a mountain of debt can produce can literally be overwhelming. Credit cards, medical bills, payday loans, old utility bills, cell phone carriers, overdrawn bank accounts, deficiencies from a repossession, past due loans, etc. All of these things can build up and spiral out of control. And your life can seem like an inescapable trap.

But it does not have to remain this way. In fact, the relief that you seek is more easily attained than you may think. For instance, when you file a St. Louis Chapter 7 bankruptcy, all of your unsecured debt (the stuff mentioned above) is discharged. This means that the debt goes away forever. The creditors cannot demand payment from you anymore. The creditors cannot call you anymore, or write you letters, or harass you at work. And you are not obligated to pay them anything ever again, or explain anything to them, or even talk to them. They are all gone, in one fell swoop. Once this discharge occurs, you will be in a perfect position to begin rebuilding your credit score. Most people who file a Missouri or Illinois bankruptcy will typically find themselves making major purchases (like a house) within two years, and reestablish a good credit rating within one year.

Or if the better option for you is a St. Louis Chapter 13 bankruptcy, then the relief from debt is handled in a slightly different way. A Missouri Chapter 13 is a repayment plan. This allows you get caught up on things like your mortgage (so you can save your home from foreclosure), to make sensible payments on your car (so that it does not get repossessed), take care of your tax debt, and come current on any back child support obligations. All of these kinds of debts are consolidated into one easy, monthly payment to the Trustee. The Trustee then distributed the funds to the various creditors listed in your Chapter 13 plan.

But the biggest benefit to this entire equation is one that has not even been mentioned yet. That is the fresh start / clean slate that the court gives you when you file for bankruptcy. Yes, it's an opportunity to get relief from your creditors attacks; yes, you will now be able to answer your phone; yes, you will have a chance to finally breathe easier. But the biggest bonus is the chance you will be given to start out fresh again in life. The slate will literally be wiped clean, and you can move forward without the burdens of the past. This will enable you to rebuild your credit, reach your goals, and begin living the life that you once had.

The affordable St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been helping people get to where they need to be in life for over ten years. Our team of professionals has the necessary skill, knowledge, and expertise to guide you through the entire bankruptcy process from start to finish. We want to make sure that you understand your rights, explain all of your options, and let you decide what is best for you and your particular situation.