Missouri Bankruptcy Legal Questions

Your LLC is a separate entity from you individually.  Therefore, your LLC's accounts receivables are not your property, and are not included in the bankruptcy estate. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More

bankruptcy does not affect the obligations of non-bankrupt parties.  The question you are asking is really one of state law (where the property is located).   Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

Finding the right attorney is important, and may require several consultations with different firms. Can you hire a different attorney once you have already hired an attorney to handle your case? Sure, although most attorney contracts include a provision that the attorney be compensated for time spent. You may not receive a full refund if you have already put money down as part of a retainer.  ... Read More

Generally speaking, accounts receivable will be considered an asset in the bankruptcy if you are the sole owner of an LLC. The bankruptcy will protect your personal accounts from collections, and it will relieve you of any personal obligation to repay debts, but your LLC may still be held liable for business debts and business accounts may still be subject to collection efforts.  ... Read More

Yes, Medical bills can absolutely be discharged in bankruptcy. With several important exceptions, all bills and money you owe can be discharged in bankruptcy. You can even cancel existing contracts. The most commonly faced exceptions to discharge are student loans (rarely dischargeable), certain taxes, and child support obligations. ... Read More

In my experience, it is unusual for judgment lienholders (such as credit cards) to seek foreclosure against a property, even though they can seek to do so legally. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

Yes, it's possible but it depends on a number of different factors, including the exact numbers involved, your income, expenses, equity in the property, which Chapter you file, etc. You need to have a consultation with a bankruptcy attorney in your area for more details. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

Nowhere near enough information to either understand or answer your question. There's no chapter of bankruptcy that requires you to give money to the court (perhaps you meant trustee), but which chapter did you file?  Why were you seeing the Judge?  Was there some sort of motion file?  Did you properly exempt the 401k on your bankruptcy schedules? Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr  ... Read More

Your life is not ruined.  You have a relatively small amount of debt and there are multiple ways to deal with it, bankruptcy being one--but not the only option. I suggest you consult with a bankruptcy attorney in your area to evaluate all your options and see what works best for you.  It's very possible that bankruptcy will be a good choice. Good luck. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

your mother easily fits into a chapter 7 bankruptcy petition and even though she has a steady income I would not file chapter 13 bankruptcy in her situation. She is certainly below the median income and will surely pass the means test of chapter 7 bankruptcy petition, so this would be the way to go in her situation. You should contact a experienced bankruptcy attorney in your area and have them proceed forward for your mother. I have responded to your inquiry according to the laws of Massachusetts, where I practice. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.   Joseph F. Botelho, Esq. BOTELHO & ASSOCIATES, LLCAttorneys At Law www.massachusettslawyeronline.com 126 Shove Street Unit 202 Fall River, MA 02724 Office: 888-269-0688Cell: 508-801-6747FAX: 877-475-8147 Twitter Facebook  ... Read More

First of all, please accept my deepest sympathies for your loss.  That is something a parents should never have to endure. As to your questions, it really depends on the terms of your plan, how your plan is structured, and the rules of the trustee and court in your jurisidiction.  The life insurance proceeds are part of your "bankruptcy estate" and in most cases any increase in income during the course of your case can result in a motion to increase your plan payments (assuming you are paying less than 100% to your unsecured creditors). You really need to discuss this question with a bankruptcy attorney in your area since a lot of this depends on the specifics of your Plan and the judge/trustee in your case.  I only practice in the Los Angeles area and what they do in Missouri could be completely different. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

No, you cannot use an LLC to hide assets from the bankruptcy trustee, in either a chapter 7 bankruptcy or Chapter 13 bankruptcy. If you do attempt to transfer any property from yourself to the LLC, the bankruptcy trustee will void the transaction if it happened within two years of filing your chapter 7 bankruptcy petition. As chapter 13 bankruptcy does not include the liquidation of property, it really wouldn't matter where your assets are located if you file chapter 13 bankruptcy. An LLC is not something used for estate planning purposes, you'd better be suited by putting assets you want your children to have in a trust, such as a special needs trust. I'm not sure what the last question you are even asking, if you leave a piece of property to anyone and they can't afford it they simply don't have to accept it, so if government assistance is an issue the person who was willed of the piece of property simply does not need to take it and it will get probated with the rest of the estate. I have responded to your inquiry according to the laws of Massachusetts, where I practice. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.   Joseph F. Botelho, Esq. BOTELHO & ASSOCIATES, LLCAttorneys At Law www.massachusettslawyeronline.com 126 Shove Street Unit 202 Fall River, MA 02724 Office: 888-269-0688Cell: 508-801-6747FAX: 877-475-8147 Twitter Facebook  ... Read More

They could foreclose if the secured liens are not being paid on and kept up to date, yes. May not be beneficial, but sometimes banks foreclose or refuse to consider loan modifications even when it makes little financial sense too act in this way. Unfortunately, this still happens far too much.... Read More

If you will eventually file for bankruptcy, you should not care about the interest that is accruing.  It will be included in the discharge you receive.  Your income may exceed the "means test" which includes all of your income.  Your lawyer seems to be doing everything right.  A lesser lawyer would have put you into a chapter 13 and had you turning over money each month for the next 3 to 5 years to your creditors.... Read More

To the extent a tax refund is accrued during the year of filing it is property of the estate.  So, if you file mid year, on half of your refund will go to the estate.  If you file after 2/3 of the year, 2/3 is property of the estate and 1/3 is simply yours.  In Missouri,  you have a small amount of property, such as cash, stock, tax refunds, property that exceeds dollar limitations (such a cars that have equity that exceeds what your state law allows as exempt; $3000 in MO).  This is a "wild card" exemption.  The "wild card" is a pretty low amount in MO.  Without knowing more, it is hard to know if your tax refund would have fallen within your available wild card exemption amount.  It is also hard to know what your layer could have done to protect your refund.  It sounds like your lawyer did a bad job of warning you about the tax refund.  It is hard to judge from afar whether there is anything that your attorney could have done to protect the refund.   It may be a case of "no harm no foul."  But also very disappointing communications.  (Frankly, you should have had all of this explained to you by your lawyer before you filed.  I would hate for one of our clients to feel so confused.  I would also feel bad if our clients could not get a straight answer from us.  I guess we are just old school.)... Read More

There's no way to answer your question without having a comprehensive consultation with a bankruptcy attorney in your area.  Whether or not you can keep any asset depends on a number of factors, including the value of the assets, amount of equity in them, which bankruptcy chapter you file, and the exemptions you have available to protect those assets. Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections.  Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr... Read More

The US Trustee is part of the Justice Department.  Suing the Justice Department is a huge undertaking.  Since the US Trustee's Offices actions are primarily subject to Court scrutiny, it is hard to understand the basis for suing that office, unless it is in connection with the administration of the panel trustees, such as an appointment or not of a person to the panel.  Otherwise, it is hard to see why that Office would owe a duty to your wife that would make it culpable.    ... Read More

Once a delinquent account has been transferred to an attorney to file suit, it is certainly more difficult to negotiate a lesser settlement. It does happen, of course, but it is more rare than when an account is being collected by a debt collection agency, or even by the original underlying creditor. Typically, if an attorney has already taken the time to review the case and prepare, draft, file and serve a complaint, they've already got sufficient time and money invested in the outcome of the case so they're less likely to accept an amount that's less than the full debt and likewise less likely to accept a payment plan, more often preferring instead to push forward and win an easy judgment which they can then collect upon. Of course, certain facts regarding the amount at issue and the nature of the underlying debt may alter the scenario, as would your ability to pay. Simply put, it never hurts to attempt to make an offer. Usually it is beneficial to have an attorney represent you and conduct the negotiations. Attorneys are typically more effective at reaching an agreement, and likewise the presence of an attorney representative indicates to the other side that proceeding with the case will not be as automatic or as smooth (read: quick and easy) as they'd prefer. The context of your question does confuse me a bit, however, as you indicate both that you are currently being sued and then also "if" you were to be sued. Often an attorney will issue one demand letter prior to filing a case in court. If you've received a demand letter but have not yet been served with a complaint and service of process, you're lucky (relatively speaking, of course) but need to act fast. If you're sued and served, you'll have to answer in court or risk defaulting. Upon either a default or other judgment, the attorney will likely begin collection procedures, which might include liens, garnishments, or other process, depending on the facts. If it gets to that point, you'll certainly want an attorney to represent you. If you are considering bankruptcy, likewise, you should consult with a bankruptcy attorney to discuss with you the various options available to you and the effects you're likely to encounter. A huge hit to the credit score is but one effect, as bankruptcy can effectively prevent you from obtaining credit cards, procuring a loan, or otherwise borrowing funds for at least 6 or so years. Finally, the suit is not likely to affect your husband directly, in that he won't be named. A bankruptcy proceeding may have some indirect or even possibly direct effect, depending on the circumstances. You should re-post parts of this question to the Bankruptcy section to get a more clear answer. At the end of the day, the best course of action ultimately depends on a thorough evaluation of your case and all the attendant facts. It's likely best to consult with and retain an attorney earlier rather than later to help with this process and find the best resolution possible.... Read More

You obviously have a lot going here and you really should sit down and talk with an attorney. What I see as the long and short of the matter is that you should probably consider skipping straight to bankruptcy. Is there a chance the suing attorney would work out a payment schedule; possible. May require full payment, partial payment with monthly payments, etc. But miss any payment and garnishments against wages or bank accounts will likely follow quickly. Is there a chance the amount could be reduced; possible depending on creditor. But consider if the amount is reduced that you are also subject to receiving a 1099 making the amount "forgiven" a taxable amount to you. With bankruptcy the amount is discharged rather than "forgiven" so no tax issue. There is a lot to consider in determining if bankruptcy is actually the best course of action for you and not easily addressed in a quick email response. Talk with a local attorney ASAP to give you best direction on how you should proceed.... Read More

The important fact here is if the debt was discharged in your filing, most likely it was. If your mortgage has in fact been discharged, the fact you kept paying it after the discharge does not make you liable for the debt. Yes, you can just walk away from the house and it should not affect your credit, as it's already been listed as discharged on your credit report at the time of your Chapter 7 Bankruptcy discharge. I have responded to your inquiry according to the laws of Massachusetts, where I practice. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.   Joseph F. Botelho, Esq. BOTELHO & ASSOCIATES, LLCAttorneys At Lawwww.massachusettslawyeronline.com 126 Shove Street Unit 202 Fall River, MA 02724 Office: 888-269-0688Cell: 508-801-6747FAX: 877-475-8147 TwitterFacebook  ... Read More

If you are considering a chapter 7 bankruptcy, you will be able to keep a vehicle if the equity you have in that vehicle does not exceed the amount protected by law. Let's say, for instance, that your 16 year old truck is worth $2,000.00. You can keep that truck because you can protect up to $3,000.00 in equity in a automobile. If you are married and filing jointly, you can protect up to $6,000.00 in equity. As far as a purchase option is concerned, you will have to clarify as to what you mean. ... Read More