Bond & Botes, P.C.

How To Value Your Property For Your Schedules

Bond & Botes P.C. — Mon, 17 Jan 2011 20:37:52 +0000

When you leave your attorney’s office and sit down to fill out your bankruptcy paperwork, one of the most difficult tasks is figuring out what amount to list as the value for your property. Most people do not want to put anything down that may not be completely accurate but some values are more difficult to arrive at than others.

For instance, when determining the value of a late model vehicle, it is an easy process of visiting the website of NADA (nada.com) or Kelly Blue Book (kbb.com). Just select the year, make and model of your vehicle and the value is presented. Often less valuable items such as inoperable vehicles and household furnishings are the most difficult for people to assign a value.

As a general rule, you should list most items using a “yard sale” value. If you were to set your possessions out in your front yard and hold a one day sale, what would the items sell for? For an old car which is no longer working without some expense, ask yourself what you would pay for the car in its current state, not what you would pay after the car is fixed or refurbished. This is the most proper methods to use when assigning values to your possessions.

Written by: Kenneth Elmer (Bond, Botes, Reese & Shinn, P.C.), Jasper & Birmingham, AL

What If I Want To Pay A Particular Creditor After Bankruptcy?

Bond & Botes P.C. — Tue, 21 Dec 2010 17:09:24 +0000

A debtor may repay as many dischargeable debts as desired after filing under Chapter 7. By repaying one creditor, a debtor does not become legally obligated to repay any other creditor. The only dischargeable debt that a debtor is legally obligated to repay after filing under Chapter 7 is one for which the debtor and the creditor have entered into what is called a reaffirmation agreement. If the debtor was not represented by an attorney in negotiating the reaffirmation agreement with the creditor, the reaffirmation agreement must be approved by the court to be valid. If the debtor was represented by an attorney in negotiating the reaffirmation agreement, the attorney must file the agreement and a statement with the court in order for the agreement to be valid. If a dischargeable debt is not covered by a reaffirmation agreement, a debtor is not legally obligated to repay the debt, even if the debtor has made a payment on the debt since filing under Chapter 7, or has agreed in writing to repay the debt, or has waived the discharge of the debt.

Written By: Bradford W. Botes

Will I have to go to court if I file bankruptcy?

Bond & Botes P.C. — Fri, 19 Nov 2010 23:31:05 +0000

Yes, you will have to go to the courthouse at least once for the Meeting of Creditors hearing. This meeting is usually held about a month after your bankruptcy petition is filed with the court. This hearing gives your creditors and the bankruptcy trustee an opportunity to ask you questions under oath regarding your assets and liabilities. This meeting is informal, meaning a judge does not preside over the hearing and it may not even be held in an actual courtroom. Instead, the bankruptcy trustee or bankruptcy administrator directs this meeting.

Your attendance at the Meeting of Creditors is mandatory. You will receive a notice in the mail from the bankruptcy court, usually within a week of filing, giving you the date and time that you must attend this hearing. You can usually expect to be at this meeting anywhere from 10 minutes to an hour. It really depends on where you fall on the docket for that day.

You should receive instructions from your attorney on what to bring to this meeting. If you have filed a chapter 13, it is important that you make at least one payment prior to this meeting and bring proof of that payment with you to court.

Written by: Mary Conner Pool – Bond, Botes, Shinn & Donaldson, P.C. (Montgomery & Selma)

Beware of Loan Modification Scams

Bond & Botes P.C. — Fri, 12 Nov 2010 23:00:06 +0000

Almost daily our attorneys meet with individuals who have been scammed out of large sums of money with the promise of getting their mortgages modified. A good rule to be reminded of is . . . if it sounds too good to be true, it probably is.

If you receive a call from someone telling you that you can get your mortgage modified if you send them $2,000 (or some other amount). Do not send them money. A third party cannot force your mortgage company to modify your mortgage regardless of the amount of money you pay them. These companies are charging you money for what you can do for FREE.

The best way to modify your mortgage is to deal directly with your mortgage company. Contact the loan loss mitigation department at your mortgage company to discuss your modification options. Usually, your mortgage company will send you information by mail to get the modification process started.

If you have already fallen for this scam, you are not alone! It is important for you to consult with an attorney to understand all of your options.

If you are facing foreclosure or have fallen behind on your mortgage payments, call your local Bond & Botes law office today for a free consultation with an attorney to understand your rights.

Written by: Mary Conner Pool – Bond, Botes, Shinn & Donaldson, P.C. (Montgomery and Selma)

Do Debt Consolidation/Settlement Agencies Really Work?

Bond & Botes P.C. — Tue, 02 Nov 2010 22:01:58 +0000

Today, maybe more so than ever, many Americans find themselves struggling with too much debt. With unemployment at a 26 year high, record foreclosures and a financial industry seemingly oblivious to these hardships, countless people everyday find that they can no longer make ends meet and continue to pay their debts. These people are not nameless, faceless, carefree beings that simply chose not to pay their bills; they are good, hard working people stressed with trying to raise and provide for their families in the face of these very difficult times. Bankruptcy is the last thing most people want to consider.

Enter the “Debt Consolidation/Settlement” agencies. Realizing the current economic and financial environment combined with people’s desire to avoid bankruptcy, Debt Consolidation/Settlement companies are popping up everywhere. And they promise the best of both worlds: pay back your debt, at least a percentage of it, and avoid filing bankruptcy. But do they work?

A recent article from CNN (see link below) shines some light on these companies and details some new regulations regarding when and how they collect there fees. While the new regulations are very limited (it only applies to companies that use telemarketing to contact people), it is a step in the right direction. Hopefully, as more people become aware of how misleading Debt Consolidation/Settlement companies are, more laws and regulations will be passed that are designed to protect good, hardworking people who are only trying to do the right thing.

http://money.cnn.com/2010/10/27/pf/debt_settlement_fee_rule/index.htm

Every Bond and Botes office offers a free, no obligation consultation. This consultation allows you to discuss your personal financial situation with an attorney familiar with debt settlement, credit counseling, debt consolidation, personal finance, as well as bankruptcy. We believe it is always a good idea to educate yourself as much as possible before making any decisions regarding your finances. Deciding how you handle this situation is very important. Let us know if we can help.

Written by: Cynthia T. Lawson – Bond, Botes & Lawson, P.C. (Knoxville & Loudon, Tennessee)

What are exemptions and why are they important?

Bond & Botes P.C. — Fri, 29 Oct 2010 21:22:36 +0000

In your bankruptcy case you have to list all your assets and all your liabilities. Your assets are the things that you own, and each state allows you take certain specified exemptions on some or all of your assets. These exemptions allow you to protect your belongings, up to that stated amount. There are several types of exemptions for certain categories of property, and you are allowed to take the maximum amount of each exemption, if you have those items. If the value of what you own is less than the allowed exemption amount, then that entire item is exempt. If the value of your property is more than the allowed exemption amount, then you can protect only the allowed amount and the overage is paid to your unsecured creditors through your chapter 13 plan payments or in a chapter 7, the trustee may sell an asset that is unprotected. The exemptions are important because they protect your property from creditors.

Written by: Amy M. Hampton – Bond, Botes, Shinn & Donaldson, P.C. (Selma)

Can I convert from a Chapter 13 to 7 bankruptcy?

Bond & Botes P.C. — Wed, 27 Oct 2010 18:20:47 +0000

It is possible to convert from a Chapter 13 to a Chapter 7. A debtor in bankruptcy can usually convert without permission of creditors and trustee in bankruptcy as long as you have not previously converted from a chapter 7 to a chapter 13 in the same case previously. A bankruptcy attorney would need to review your case history, income, assets and liability to determine whether you should convert and whether you are eligible to convert to a Chapter 7.

Written by: Cynthia T. Lawson – Bond, Botes & Lawson , P.C. (Knoxville & Loudon, Tennessee)

What to do if you are sued in the state of Alabama by a debt collector

admin — Fri, 22 Oct 2010 22:16:56 +0000

If you are served with a lawsuit and sued by a debt collector in the state of Alabama, you must timely answer the complaint within the time provided by the court clerk’s office which will be either 14 or 30 days depending on the type of case or you will lose automatically. Failure to answer the lawsuit in the state of Alabama will result in a default judgment against you. Additionally, if you answer the complaint and admit the allegations, then the Plaintiff (the one who is bringing the lawsuit) will also win.

In the state of Alabama, you have a right to deny all the allegations in a lawsuit against you and force the Plaintiff to prove its case against you if it can. Many people do nothing and simply ignore a lawsuit at which point they lose automatically or they answer that they owe a debt at which point they will lose as well. You must timely respond to a lawsuit in order to have a fighting chance in your particular case. This blog should not be construed as legal advice as each situation is different. Please feel free to consult a lawyer of your choice in order to defend yourself against a lawsuit.

Written by: Ron Sykstus

How Will Filing Bankruptcy Affect My Credit?

admin — Wed, 20 Oct 2010 22:51:24 +0000

A major concern that most of our clients have is the extent to which their credit will be affected by filing a Chapter 7 bankruptcy. Your credit will be adversely affected by filing a Chapter 7 bankruptcy. There is no question about that. The fact is that your filing will be reflected on your credit report for a period of ten (10) years from the date your petition is filed. That, however, is not the main issue. It is important to recognize that your underlying financial problems are the real cause of your negative credit, not the bankruptcy. Actually, the bankruptcy code can be the first step in re-establishing your credit. As stated, a Chapter 7 will be on your credit report for a period of ten (10) years. However, any negative or bad information currently on your credit report will stay on your credit report for a period of seven (7) years but that time period does not start until you pay off your creditors in full or it is “written off” as a bad debt. As a practical matter, your credit will be affected for a period of at least seven (7) years without doing anything. The reason we say that filing a Chapter 7 bankruptcy may be the first step in reestablishing your credit is that it provides a cut-off, or a beginning point for you to obtain a fresh start.

Written by Bradford W. Botes

What About My Moral Obligation to Pay My Debts?

admin — Mon, 18 Oct 2010 21:51:54 +0000

The decision whether or not to seek bankruptcy relief is a difficult one. One should remember that bankruptcy is a right guaranteed by law and provided for in the Constitution of the United States of America. An individual should consider it in terms of how bankruptcy might help avoid hardships for his or her family. It may be that it is the only way to provide them food, clothing and shelter in hard times. One must often decide that his or her obligation to provide for children or loved ones outweighs the obligation to pay his or her creditors.

Chapter 13 debt consolidation provides yet another option. In some cases, a debt consolidation proceeding may provide a viable mechanism for repaying creditors as well as solving other problems.

Also, you should remember that filing bankruptcy does not prevent you from voluntarily paying your debts at a later time if you are able. The bankruptcy discharge only prohibits your creditors from forcing you to repay debts.

Written by: Bradford W. Botes