Good News:  Onesize does NOT fit all in life or in your legal case.  Thank goodness!  One of the first things you learn in law school is that every rule has exceptions.  Sometimes the exceptions are long and more important than the law.  I remember in tort class the rule that you have no duty to care for other adults.  Our text book included a case about a man with limited mental abilities.  His brother and sister fed him but provided no further care from his money.  The man lived in filth and wore rags.  The court held that they had to care for him with his money.  Now, the exceptions to the rule fill books, and is growing every day.  Moreover, I think that not everything fits into the same slot.

Bankruptcy cases are no different.  I have done thousands of case and all of them are different.  More importantly, we treat each case on its own merits.  First, the chapter you file will depend on your income, your expenses, your debts and what property you want to keep.  This is not simple.  I have clients call every few months (different clients) and ask why their plan payment is so high when their friend's/family's is lower.  Well, your plan payment depends on your life.  If you are buying a $40,000 truck and your friend/family is buying a $10,000 car then the payments will be different.  In Missouri, we only have 5 years to pay the case off.  In Kansas, the Judge may allow cases to run longer, with his approval. 

Each client's budget is prepared with that client's life in mind.  My husband and I have our budget base our life.  We have very good health insurance, but we still pay a lot in medical expenses.  We pay at least $3,000 per year just on dental expenses.  We also don't have $40,000 cars or high house payments.  I suggest that my clients prepare a budget for each month and do their best to stick to it.  We budget for our cars to break down.  I just had a flat tire on Sunday.  Although I just bought new tires last fall, the cost was still over $60.  You have to plan for things to break down in life and in your bankruptcy case. 

You can't compare your case directly with someone else's case because your case is for just you.  If you want to understand why we have done things the way we have, then ask us.  We will be happy to explain.  Additionally, if your budget is not working, we can see what can be done.  Sometimes my hands are tied because of the fixed payments.  Sometimes you need to either make more money or get rid of something.  I am so proud of several of my clients.  So many are being laid off work ... though no fault of their own.  They are coming in and taking a hard look at their expenses and property.  I have several that are not waiting to see if they find another job but are cutting costs to the bone.  For example, buying a side a beef to feed their family, surrendering cars with high payments and buying a car they can pay off or car pooling.  Hey, I am trying to learn to ride the bus downtown on days that I can.  I also am riding my bike.  I hope to be able to ride my bike to the office by the end of the summer!  (I can't ride that far yet!) 

Again, your case is just for you.  Don't worry about what other people are doing.  If your budget is working for you, who cares what they are doing?  Don't believe the stories that they had to pay nothing and keep everything.  If those things were true, don't you think we all would file?  If you have things, you have to pay for them.  If you lie about your property, you can end up in prison and owe a large fine without getting a discharge (that means that you still owe all the money to your creditors).  Some people have even lost their jobs. 

Our office files mostly Chapter 13.  This past few weeks, I have taken a look at why that is true, when so many other offices file mostly Chapter 7s.  First, several attorneys send me all of their clients who need to file Chapter 13s, as they only file chapter 7.  Second, my clients have homes that they want to keep and they are facing foreclosure.  Third, I have clients with money which puts them well over the average income in Missouri and/or Kansas and they are required to file a Chapter 13.  Fourth, clients are better off in a Chapter 13 because of the advantages of it.  For example, I had a single parent, whose car payment would have been over $400 per month in a Chapter 7 or $200 in a Chapter 13.  You can see why my client chose Chapter 13.  They needed the money to feed their kids.  I can hear you asking, "How does that work?" 

In Chapter 7, you have 3 options for properly perfected secured creditors.  Option one is to surrender the collateral (what the lien is on) and pay no additional money.  Option two is to pay the loan in full.  Some clients have borrowed enough money to pay it in full.  I talked to 3 companies at the bankruptcy convention who are lending money to Chapter 7 clients.  I will be happy to give clients the names and phone numbers of these companies.  Option three is to reaffirm the loan.  If clients want this option, they must be current at the time of the agreement and the lender must agree.  The client calls the lender and the lender sends out an agreement.  I must sign off on the agreement or we put the agreement before the Court.  If I don't sign off and the Court does not sign off, then the client can continue to make the payments and keep the property.  This can be better explained in person. 

Now, back to why I love Chapter 13.  Fifth, my clients owe taxes.  In Chapter 13, we make arrangements to repay most taxes or discharge them over 36 to 60 months. Sixth, my clients have non-exempt equity in property that they want to keep.  Each state has spelled out what property is exempt, which means the property that is protected from most creditors (child support, maintenance and taxes may be able to qualify as exempt property).  I have clients with non-exempt equity and they want to keep it.  In Chapter 13, they can buy it back (keep it in exchange for money) from the unsecured creditors over 36 to 60 months.  The Chapter 7 trustee normally want the money much quicker. 

Is Chapter 13 the right one for you?  It depends.  Every case is different.  Talk with an attorney to see which chapter is right for you.

Have a wonderful day!

June 1, 2009

Welcome to our updated site.  It is a busy time for us.  The police have had several check points ... leading to more DUI clients. 

So many of our clients are facing foreclosures.   Bankruptcy is about getting a fresh start. 

Please call us today to schedule your appointment with an attorney.