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On July 9, 2012 Governor Nixon signed a law that changes several Missouri bankruptcy exemption statutes. These include the head of household statute as well as the vehicle exemption stature. It clarifies that Missouri bankruptcy exemption applies to motor vehicles if the total value of the one or more vehicles combined is greater than $3000.…
While this sounds like a reasonable idea, paying off family members or friends before filing Missouri bankruptcy can create a tough situation for you and for the person that you paid. The Missouri Bankruptcy Code states that payments made to friends or family within one year of filing bankruptcy can be made void by the…
Almost always the answer is NO! Most of my clients have considered using a debt negotiation company that has advertisements on television or radio before they considered bankruptcy. The advertisements offer relief from your creditors for just a small portion of the amount owed. Once again, the old adage is true: If it sounds too…
If you owe less than $600 you should consider paying off credit card debt if you can. This will reduce the negative impact on your credit rating post bankruptcy. As you file for bankruptcy you are required to list all debts, including unpaid credit card debt. All creditors are immediately notified. For Chapter 7 bankruptcies,…
You should never transfer your property to others’ ownership prior to bankruptcy. While this may sound appealing, it is considered fraud. It will lead to complications and difficulties in your bankruptcy and will ultimately not protect your assets. The transferred assets can be legally seized by creditors or trustees from the new owner. Thus it…
You should not borrow against your home property to pay off debt. Missouri homestead exemption laws protect some or all of your home equity when filing for bankruptcy. If you do borrow against your home, you will likely have higher payments in the future and risk losing home ownership in the future. A better option…
Most of the time you should not take out loans against IRAs or other types of retirement accounts to pay off your debts. Missouri laws in St. Louis protect most or all of your retirement funds during a bankruptcy. Therefore, you can often reorganize or eliminate debt without losing your retirement funds. Withdrawing funds before…
I often get asked about the difference in the several chapters of bankruptcy by my clients. Generally, my business clients ask about Chapter 11 bankruptcy. A Chapter 11 bankruptcy is designed for two specific reasons: 1) restructuring business debt and 2) restructuring consumer debt for individuals that exceed the debt limitations for Chapter 13 bankruptcy.…
How should you handle your retirement plan before filing for St. Louis bankruptcy? Our clients often wonder how St. Louis bankruptcy effects their retirement. It’s easy to understand why people would ask this and wonder about the possibility of their retirement accounts being depleted. Financial planners also ask us about this in order to give…