Consumer Bankruptcy for Southern California and Missouri

Contact Us Now or Watch Bankruptcy Basics Videos Below

Contact Link at LSchrader@Schrader-Law.com

If you're considering filing bankruptcy and want to find out the details, you're invited to give us a call and make an appointment to speak with an attorney. You may, also, want to watch the 9 short videos below which may answer some of your bankruptcy questions.

The Means Test

The means test calculates the average gross income of a debtor over the six month period, immediately prior to, but not including the month of filing, and compares this amount (multiplied by 12) to the median state income for a particular household size. The means test is most commonly used to determine if a debtor may receive a Chapter 7 discharge or must make regular payments to creditors in a Chapter 13 case before receiving a discharge. Some income is not included in the means test and if a majority of the debt is business debt then the means test may not be necessary at all. Find out more by speaking with an attorney.

Chapter 7 Cases

A consumer debtor in a Chapter 7 case will normally receive a bankruptcy discharge 4-6 months after a case is filed. For cases filed after May 1, 2020, a Missouri individual must normally earn less than $49,086 annually to receive a Chapter 7 discharge. Income for a Missouri family of 4 persons must normally be less than $92,129. In California, an individual must normally earn less than $60,360 annually to receive a Chapter 7 discharge and a family of 4 must earn less than $101,315 annually.

These amounts should be considered only estimates. Certain income does not count toward the means test and your attorney will help you understand if Chapter 7 is right for you.

Chapter 13 Cases

A consumer debtor or debtors in a Chapter 13 case must normally make monthly payments of their disposible income to creditors for 3-5 years before receiving a bankruptcy discharge. Some debt that is not dischargeable in a Chapter 7 case is dischargeable in a Chapter 13 case. Wholly unsecured real property liens (i.e. junior mortgages) may also be discharged in a Chapter 13 case. While a Chapter 13 case costs more some attorney fees can be paid over time. Your attorney will assist you in preparing a Chapter 13 plan which must be confirmed by the U.S. Bankruptcy court. This is a powerful option for dealing with certain debts.

Consumer Chapter 11 Cases

In both Missouri and California, only an individual, or an individual and his or her spouse, that combined owe, on the date a case is filed, less than $419,275 to unsecured creditors and less than $1,257,850 to secured creditors, may be a debtor under Chapter 13. So while Chapter 11 is most commonly used by businesses, it is an option for consumer debtors with high amounts of debt. Chapter 11 cases can be expensive and difficult. I've walked the path with consumer Chapter 11 debtors before and would be happy to discuss your situation.

Call Link at (913) 593-0137 or send an email to LSchrader@Schrader-Law.com.

See Disclaimer Below.

Consumer bankruptcy basics

Part 1: Introduction

This series of videos was created by the U.S. Courts in 2010. I have reviewed the videos and believe the continue to provide a good overview of bankruptcy in 2020.

Part 2: Types of Bankruptcy

This video discusses the two most commonly filed chapters for consumer debtors: Chapter 7 and Chapter 13. Chapter 11 is mostly used by businesses, but is also available to consumer debtors with debt exceeding the Chapter 13 debt limits.

Part 3: Limits of Bankruptcy

This video provides additional and general information on consumer bankruptcies. Speak with an attorney to discuss your specific situation and concerns.

Part 4: Filing for Bankruptcy

Bankruptcy cases prepared and filed by an attorney are almost always filed online. In this video you'll see some history, included a 3.5 "floppy" disk and a debtor paying cash to the bankruptcy court clerk. The Automatic Stay arises after a petition is filed and creditors who attempt to collect on a debt are violating the automatic stay. Tell your attorney if this happens to you!

Part 5: Creditors' Meeting

During the COVID-19 epidemic the Creditors' Meeting, or the 341 Meeting, will likely be held by video conferencing. The trustee will ask you questions about your petition, schedules and statement of affairs. You must be prepared to answer questions truthfully and know the consequences of your answers.

Part 6: Bankruptcy Crime

Complete and accurate information must be provided to your attorney and paralegal, and included in your bankruptcy petition, schedules and statement of affairs. Your attorney will help answer your questions, help provide legal strategies for protecting your property from creditors, and help you know how to avoid committing a bankruptcy crime.

Part 7: Court Hearings

Chapter 7 debtors only rarely have a court hearing. A debtor without an attorney must appear before the Bankruptcy Court if the debtor wants to enter into a Reaffirmation Agreement. Chapter 13 debtors normally must appear before the Bankruptcy Court only at the hearing to confirm a Chapter 13 Plan.

Part 8: The Discharge

The Discharge in a Chapter 7 case normally is entered 4-6 months after a Chapter 7 petition is filed. In a Chapter 13 case, the Discharge is entered only after all plan payments have been made, unless the Chapter 13 debtor receives a hardship discharge at an earlier date. If a creditor tries to collect on a debt that has been discharged, a debtor may "sue" the creditor in Court and receive damages. Tell your attorney if this happens to you!

Part 9: Legal Assistance

Bankruptcy can be stressful. An attorney can help identify and protect your exempt assets and guide you in determining the best time to file. While a bankruptcy case can usually be filed quickly, when necessary to stop a foreclosure, a repossession, or a garnishment, it is better to speak with an attorney early. Talking with an attorney who can help you decide if bankruptcy is right for you can help reduce that stress and set you on the path for a fresh start! Although the Yellow Pages may not be the place to begin your search in 2020, there are still low cost or free services available, if you qualify.

Disclaimer: The choice of a lawyer is an important decision and should not be based solely upon advertisements. The information contained on this website is not an offer to provide legal services, but an announcement and an invitation to learn more about the services I provide by contacting me by phone or email. An attorney-client relationship is not formed until confirmed by me in writing, normally after a fee agreement is signed and a deposit received. Do not send confidential information. I may be representing another party in your matter and your confidentiality is not protected until an attorney-client relationship is formed.

Law Office of Link W. Schrader
PO Box 245, Lee's Summit, MO 64063