Best Bankruptcy Lawyers in Springfield, MO

FAQs

• Where do I file for bankruptcy in Springfield, Missouri?

  To file for bankruptcy in Springfield, Missouri, you would need to visit the United States Courthouse located at 222 N. John Q. Hammons Parkway, Springfield, MO 65806. The courthouse can be contacted at 417-865-3869. Please note that you will be required to present photo identification upon entering the courthouse. It's important to be aware that phones and cameras are not allowed for members of the general public inside the courthouse. The courthouse operates from 7:30 am to 5:00 pm, Monday through Friday, except on holidays.

• Where can I get bankruptcy forms in Springfield, Missouri?

  You can obtain bankruptcy forms in Springfield, Missouri by visiting the website of the United States Courts at https://www.uscourts.gov/forms/bankruptcy-forms. On this website, you will find a comprehensive collection of bankruptcy forms that you can download and print. These forms are provided by the court system and are necessary for filing for bankruptcy. Be sure to select the appropriate forms based on the chapter of bankruptcy you plan to file

• What assets are exempt when filing for bankruptcy in Springfield?

  When filing for bankruptcy in Springfield, there are several common exemptions for protecting assets. These include up to $15,000 equity in a home or $5,000 in a mobile home, up to $3,000 equity in a motor vehicle, a $600 wildcard exemption for nonexempt property, and up to $3,000 personal property such as clothing and furniture. Additionally, allowances for jewelry, firearms, tax-exempt retirement accounts, and health savings accounts are included. These exemptions are designed to safeguard specific assets during the bankruptcy proceedings.

• Is it possible to file bankruptcy on credit cards in Springfield?

  Yes, it is possible to file bankruptcy on credit cards in Springfield, Missouri. Bankruptcy allows for the discharge of unsecured debts, including credit card debt, providing a potential solution for individuals burdened by overwhelming balances. Whether Chapter 7 or Chapter 13 bankruptcy is the appropriate option depends on the individual's specific circumstances. Consulting with a bankruptcy attorney can help determine the best course of action to address credit card debt and seek financial relief.

• Do you need to include your spouse's income when filing for bankruptcy in Springfield without their involvement?

  When filing for bankruptcy and residing in the same household as your spouse in Springfield, it is important to consider including their income in the Chapter 7 means test calculations. This is because household income plays a role in determining eligibility for Chapter 7 bankruptcy and can impact whether your income surpasses the median income threshold set for your state.

• What are the income thresholds for Chapter 7 bankruptcy in Springfield?

  The income thresholds for Chapter 7 bankruptcy in Springfield are regularly updated based on federal data. As of 2021, if your income is below certain limits, you may qualify for Chapter 7 bankruptcy: $50,521 for a one-person household, $65,680 for a two-person household, $75,500 for a three-person household, and $89,418 for a four-person household. For households with more than four members, an additional $9,000 is added for each additional member.

• How much does it cost to file for bankruptcy in Springfield?

  The cost of filing for bankruptcy in Springfield depends on the chapter you choose. For Chapter 7 bankruptcy, the filing fee is $338, while for Chapter 13 bankruptcy, it is $313 (as of Dec. 1, 2020), as determined by federal law. It's important to note that low-income individuals may be eligible for fee waivers. Attorney fees can vary and are separate from the filing fees. Some attorneys may offer payment plans or provide free initial consultations to discuss your case.

• What does a bankruptcy attorney do?

  Bankruptcy attorneys help clients understand whether they qualify for bankruptcy and what their best options are. They also prepare and file petitions, answer questions during the proceedings, and educate clients about potential best steps for a positive bankruptcy outcome. Bankruptcy attorneys might also file motions or paperwork if creditors dispute the bankruptcy, or to stop creditors from taking collections actions forbidden by the bankruptcy.

• What happens when you file bankruptcy?

  Bankruptcy is a formal process that individuals, married couples, or businesses can enact when they are no longer able to pay creditors. In a bankruptcy proceeding, filers are allowed to reduce debt to more manageable levels to best pay off money owed.

  Once the bankruptcy process is initiated, debt collectors can no longer seek repayments outside of the arrangements detailed in the bankruptcy settlement. Some forms of bankruptcy result in the liquidation of assets to pay back debts, while others allow filers to retain most of their possessions and investments. Many types of unsecured debt can be managed with bankruptcy filings, but not all.

• Can you file bankruptcy on student loans?

  Under most circumstances, student loans aren't dischargeable and aren't included in bankruptcy proceedings. In rare cases, it may be possible to eliminate student loans through bankruptcy, but only if the courts determine that continuing to pay the loans would impose an undue hardship. Meeting the criteria for undue hardship is challenging, and most bankruptcy filers don't qualify.

• What is bankruptcy fraud?

  Bankruptcy fraud is a blanket term that refers to any kind of dishonest bankruptcy proceeding, which can include:

  • Hiding assets by transferring them to another person or entity
  • Intentionally omitting assets when reporting to the court
  • Destroying or withholding required documents
  • Knowingly making false statements to bankruptcy trustees or creditors

• How long is bankruptcy on public record?

  How long bankruptcy stays on public record depends on the kind of bankruptcy filing in question. Chapter 7 bankruptcy remains on the record for 10 years as there isn't necessarily a repayment component. Chapter 13 bankruptcy remains on the record for seven years as some obligations are repaid following filing based on the terms of a discharge settlement.

• Does bankruptcy clear tax debt?

  Bankruptcy can clear tax debt, depending on the circumstances. Taxes are dischargeable under Chapter 7 bankruptcy, not Chapter 13, and only if the tax debt is:

  • Federal income tax debt related to current properly filed tax returns
  • Honestly incurred with no fraud or evasion
  • At least three years old
  • Assessed at least 240 days before bankruptcy filings

  Existing liens are not eliminated with bankruptcy.

  
  

• Can they take my car in Chapter 7 bankruptcy?

  In many cases, it's possible to keep a vehicle following Chapter 7 bankruptcy. The Chapter 7 Motor Vehicle Exemption allows filers who own their vehicles outright or who are up to date with payments to keep their cars. However, those behind on making car payments are required to arrange a repayment plan. Otherwise, the vehicle may be repossessed as a part of the proceedings.

• How bad is it to file bankruptcy twice?

  Although possible, due to the damaging nature of bankruptcy, filing bankruptcy more than once isn't recommended. Filing multiple times puts a serious burden on one's credit report, making it harder to get a loan, buy a house, buy a car, or even open credit cards.

  Note that filing for bankruptcy isn't something that can be done at a filer's leisure. There are time limits following bankruptcy cases that dictate when it's permissible to file again. For example, after Chapter 7 bankruptcy, filers must wait at least eight years before filing Chapter 7 again or four years before filing Chapter 13.

• Can anyone file bankruptcy?

  Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.

• How will bankruptcy affect my credit score?

  Bankruptcies are noted on credit reports. How much a bankruptcy might drop a person's credit score depends on how high the score was to begin with, but generally speaking, the hit can be as much as 100 to 200 points. Often scores are already dropping because people filing for bankruptcy may have already missed payments on debts. Chapter 13 bankruptcies are listed on credit reports for seven years from the filing date, while Chapter 7 bankruptcies are listed for 10 years from the filing date. This is because Chapter 13 bankruptcies require at least partial payment of debts owed.

• What are the benefits of filing for bankruptcy?

  Filing a bankruptcy petition causes an automatic stay. This legally stops creditors from taking further action to collect debt, including garnishing wages or foreclosing on property. Going through a bankruptcy successfully means that debts included in the bankruptcy are discharged and don't have to be paid back, except as provided in a Chapter 13 repayment plan. Bankruptcy can help someone recover from financial duress so they can make better decisions and improve financial situations in the future. Disadvantages can include temporary lower credit scores and limitations on spending and financing.

• What's the difference between debt settlement and bankruptcy?

  Debt settlement occurs when people negotiate with individual creditors. The creditor agrees to take a payment that's lower than what someone owes and call the debt “paid in full.” Bankruptcy is a legal process that causes debts to be dismissed after someone proves they don't currently have the means to pay their debts as owed. Typically, someone can't enter into bankruptcy and also settle some debts, because the court would see that as favoring one creditor over another.