Many people misunderstand or are confused about bankruptcy, here are some answers to some common FAQ's, hope they help!

1.  How much does it cost to do a Bankruptcy?

Filing for bankruptcy includes separate fees, 1) the filing fee paid to the court and 2) the attorneys fee. There is also a $20 fee for doing a required credit counseling fee, but that is taken from the attorney fee. 

Chapter 7: The filing fee for a Chapter 7 case is $306, this fee is the same regardless of the case being individual or joint. The attorney's fee with Richards & Godfrey, PC., generally starts at $799, however, it can be case dependent and we have filed for less and even for more. Regardless, it is free to talk with us about your potential case, let us see what we can do for you and let us show you how we can work with you. 

Chapter 13: The filing fee for a Chapter 13 case is $281, this fee is the same regardless of the case being individual or joint. The attorney's fee is set by the state and depends on a few factors such as your income and debt load. However, this fee does not need to be paid up front but can be paid through your bankruptcy plan. You can file for Chapter 13 with no money down today!
  

2.  If I file for Bankruptcy what happens?

The moment you file, it's like a protective force field is put up around you, this protection is known as the "automatic stay". The automatic stay stops creditors from being able to contact you, continue to garnish your wages and even stops a pending foreclosure. All of your assets and debts become part of what is called the bankruptcy estate. What happens after these two things automatically happen depends largely on the type of case you file.

Chapter 7: In Chapter 7, all of your debt is wiped out. You can't pick and choose between things you want to get rid of and things you don't. If you have a car or home for example that has a loan on it, you can choose to keep that item by signing what is called a "reaffirmation agreement" if you were current on your payments when you filed. Generally if you can show the ability to keep making the payment you will be able to keep that item. Some exceptions do apply. Between 60-90 days after you file you will have a hearing with the bankruptcy trustee, this meeting is known as a 341 Meeting of Creditors, in this short hearing the bankruptcy trustee will ask you some questions regarding why you filed, your assets and debts. After this hearing, there may be a few things that your attorney will need to take care of. Once these items are taken care of, you will wait for your "discharge", this usually takes place within another 90 days. Generally you are in a Chapter 7 Bankruptcy for 6-8 months. 

Chapter 13: In Chapter 13, your debts are treated differently depending on what kind of debt it is and whether or not the debt is secured by some piece of property. A plan is presented to the court which shows how your debts will be repaid over the next 3-5 years. The length of your Chapter 13 plan depends on a computation or your debt and income. Chapter 13 allows you to get caught up on house payments which your are behind on, car payments, back taxes owed, amongst other things. Chapter 13 is a great option because it gives you leeway to propose a plan to the court which is affordable AND can allow you to keep things you have fallen behind on. Also, remember, unlike in a Chapter 7, you can get filed right away, with no money down. Your fees and costs for filing can be paid through the bankruptcy plan you propose to the court.  

Obviously this is just a brief overview but the kind of case to file really depends on your situation. The process can be done without an attorney, but research shows that cases filed without the help of an attorney are less successful, if successful at all. Besides all that, you don't need the added stress. Let us use our experience to help you. 

 

 3.  I am losing my house in foreclosure, can filing for bankruptcy help me keep my home?

If you are behind on your house payments and your lender is foreclosing or you fear they will soon, filing for relief under Chapter 13 can help you keep your home. Chapter 13 allows you to make payments on the "arrearage" or the amount you are behind over the next 3-5 years. As long as you can continue to make your house payment once you file, the back portion you owe will be made up in small installments over the course your bankruptcy. We can file up to the morning of your foreclosure sale to stop the sale. Remember, for this to work, you will need to be able to make your ongoing normal house payment. 

 

4.  I am afraid of my car being repossessed , can filing for bankruptcy help me keep my car?

Chapter 13 can allow individuals who are behind on car payments to keep their car and get caught up. Once you file, your car payment will be made through your Chapter 13 plan payment, the payments will be made over the next 3-5 years, and by the time you are done with your bankruptcy, your car should be paid off. 

 

5.  I owe little on my car loan or I own my car outright, will I lose it if I file for Bankruptcy?

No, however what will be required for you to keep your car through a Chapter 7 will vary depending on the amount of equity you have in your car. If there is no equity you will be able to keep it. If there is $3,000 or more equity in the car the trustee may be able to access the amount of equity over the $3,000. Remember, if you still owe money on a car, you can choose to "reaffirm the debt"  and continue to make payments under the existing terms of the loan; or you can buy the car from the lender in a single payment for its present value, this is called "redemption". You can always choose to surrender the car to the lender without any responsibility to pay anything more for it. 

 

6.  Should I file for Bankruptcy?

People who file for bankruptcy generally have experienced a job or income loss, divorce, or accident or injury. However, there are many reasons people are forced into filing bankruptcy. There are times in our lives when we wish we could just start over, if we just had another opportunity to do it over again we would do it better the next time around. Filing for bankruptcy can be this second chance for many people. When you file for bankruptcy and get a "discharge" of your debts, your debts are erased, you are not responsible for paying them any longer. Imagine if you actually got to keep all the money you are paying to creditors, do you think you would be in a better spot financially? When you file for bankruptcy you get an opportunity for a fresh start. 

 

7.  How bad will filing for bankruptcy effect my credit?

Initially, filing bankruptcy will have a negative impact on your credit. However, if you are thinking about filing your credit is probably less than stellar as it is, for many people filing for bankruptcy is a tool which can help to rebuild credit. 

• How long will it take to rebuild credit?
• You can begin to rebuild your credit right away by obtaining a secured loan or credit card. Many people are able to obtain these while going through the bankruptcy process. Interest rates will understandably be a bit higher for a while but by making on-time payments and using credit responsibly your credit will strengthen and your rates will come down. 

8.  Do I really need a lawyer to help me file bankruptcy?

The simple answer is no, there is nothing which states that a person must have an attorney when filing for bankruptcy. However, research shows that many who choose to file for bankruptcy without the help of an experienced bankruptcy attorney will be unsuccessful in completing their bankruptcy. Aside from this, the paper work and calculations can be complicated and stressful. No one would chose to do surgery on themselves, everyone wants the best doctor when they are sick to make sure they get better. Why should filing for bankruptcy be any different? Using an experienced bankruptcy attorney puts the odds more in your favor, probably best to let an expert help you. 

Adoptions In Utah

ADOPTION

            What a joy to be able to adopt a child and give him/her a loving home atmosphere.  Adoptions are becoming more and more common in our society.  Sometimes problems arise, however, when one biological parent does not want the baby to be placed for adoption.  There are several obstacles that need to be considered to make sure your adoption will withstand legal challenges.   Our law firm has represented Petitioners step-parent, private, relative and other types of adoption.  Our firm has also represented clients who need to register an adoption from a foreign country.  We can guide you through all the steps so that the love you have developed for the child can continue throughout your life and so that legally that child can be yours.  We will help you obtain the necessary reports and make sure who needs to be notified of the adoption.  We can tell you whether and who needs to consent to the adoption.  Even if you have gone through an adoption agency, you still have to file a petition for adoption and obtain the court’s order of adoption.  Let us help you through this amazing experience.

Bankruptcy News Letter

BANKRUPTCY

            Recently I was directed to a You Tube video on how to file bankruptcy for yourself.  The presenter listed five easy steps that you must follow to file for bankruptcy and which your attorney has to follow as well.  The point the presenter was making is that if you follow these five steps, which you can do yourself, you don’t need to have an attorney represent you in bankruptcy.  Of course, this person was peddling his bankruptcy preparation software, so he wants to make it sound easy.  This could not be further from the truth.  What this person explained was how to file the bankruptcy.  He did not explain all of the other things you must do in order to get a discharge, which is the ultimate goal of a bankruptcy filing.  With a discharge, you do not owe any of your creditors (with some exceptions) and so creditors cannot sue you, they cannot collect on their debt, they can’t even call you on the phone and request payment.  This is the benefit of a bankruptcy discharge.  Nearly every time I appear in bankruptcy court and observe individuals who have filed for themselves, the trustee is telling them what they have not done correctly and that their bankruptcy will be dismissed if they do not remedy those mistakes.  The trustee, however, cannot tell the individuals how to remedy only what the remedy is.  If you file for bankruptcy yourself, wouldn’t you want to obtain a discharge?  That is the benefit of hiring an attorney. 

            Our firm has over 50 years of experience in helping people file for chapter 7 and chapter 13 bankruptcy.  A chapter 7 bankruptcy can help low to no income individuals/married couple obtain relief from their debt.  A chapter 13 bankruptcy can help any individual/married couple save a home from foreclosure and even obtain relief from creditors if you have a previously filed chapter 7 within the last eight years.  Either type of bankruptcy gives you relief from garnishments, pending law suits, foreclosure, harassing creditor phone calls and judgments.  Did you know, that in some instances a chapter 13 can even relieve you from second mortgages if you have no equity in your home?  A discharge from bankruptcy will “right the ship” so to speak and allow you to take steps to re-build your credit.

            So what’s the downside?  First of all, a bankruptcy is reported on your credit for 10 years.  That does not mean, necessarily, that your credit score will be poor for 10 years.  We regularly hear from former clients, that they have qualified for a home loan even though the bankruptcy is still being reported on their credit.  Second, you could lose some property through a bankruptcy.  The rules regarding what can be taken depend on value and whether your state has an exemption to cover the property.  Our firm can safely guide you through questions regarding your property and what may or may not be at risk.  Third, you do not get a discharge on certain types of debt, with taxes, certain types of student loans, child support/alimony and debts owed to governmental agencies leading the list. 

            Is bankruptcy worth it?  Only you can decide that.  Our firm, however, is here to back you up, guide you through and answer questions about bankruptcy so that your decision can be fully informed.  We want bankruptcy to work for you and to give you the best outcome possible.  Contact us now for a free consultation.  Mention this article and we will file your chapter 13 bankruptcy for only the filing paid in advance.  This offer does not apply to chapter 7 filings.

WASHINGTON, Dec 27 -  The top Democrat in the Senate warned on Thursday that the United States looks to be headed over the "fiscal cliff" of tax hikes and spending cuts that will start next week if squabbling politicians do not reach a deal.
Majority Leader Harry Reid told the Senate in a speech that "it looks like that is where we're headed.
He called on the Republicans who control the House of Representatives to prevent the worst of the fiscal shock by getting behind a Senate bill to extend existing tax cuts for all except those households earning more than $250,000 a year.
RELATED: US consumer confidence falls on 'fiscal cliff' fears

I don't know about you but the above news sends shivers down my spine.  It seems like congress is still doing nothing about the financial crisis.  Some economist say that the pending fiscal cliff could result in another recession with unemployment reaching 11% or more.  If you are facing financial uncertainty or are currently experiencing financial difficulties Richards & Godfrey, P.C. can help you get out of your financial stress.  We are one of northern Utah's most respectable law firms for consumer bankruptcy .  Richards & Godfrey, P.C has excellent attorneys and staff  here to assist you through these troubled times.  You can read more about bankruptcy on our website:  richardsgodfrey.com.

New Year Resolutions

As we are all preparing for the holiday season, we at Richards & Godfrey, P.C. want to wish everyone a merry Christmas and a happy New Year!  It is a great time of the year to reflect upon our families and spend time with them.  It is also a time for many of us to reflect over the past year and set new goals for the upcoming year.

It's funny how every new year we each establish goals for ourselves, our families, and our careers.  It's funny how we all do this.  We all start out with good intentions and within a few weeks we soon fall off our schedule. 

Family and individual finances are on most every one's mind this time of year.  Perhaps more so as we hear daily of the looming "financial cliff".  Many are worried about how the country's economic hardships will effect your personal finances.  For those who are self -employed there is a concern about whether or not your business will survive.  As you contemplate your goals for the upcoming year and financial future I would like to share some thought with each of you.

1.  Make a budget for your personal finances and for your business.  If you fail to tell your money where it needs to go it will go to whomever is asking.

2.  In your budget try the following formula:  After tax income or adjusted gross try to divide your money each month as follows:  A) 10% for long term savings and investment; B) 10%  for short term fun, movies, entertainment etc.;  3) 10% for education including continued education;  4) 10% for charitable giving.  Study after study has shown that those who provide some of their income for charitable giving be it church, community or other charitable organization, tend to be happier and more prosperous, and lastly 5) the other 60 % is for your household expenses.  As a side note, every time I have a $5.00 or $10.00 bill in my pocket I put that in a jar.  If I was planning to go to a restaurant but instead decided to stay home and eat, the money I would have spent also goes into the jar.  You will be amazed how fast your savings adds up.

3.  Does the above seem difficult?  Let me share a story.  A client that I know was on the verge of bankruptcy.  She was in debt way over her head, living with her parents and still barely making it from pay check to pay check.  After I explained the above formula for success she decided she could do it but it would have to be modified.  She decided she could follow the above formula with $1.00 so with her next pay check to took $1.00 and divided into the four different accounts the other 60 cents went back to cover her everyday expenses.  A few weeks later she took $2.00 and did the same thing. The $2.00 then increased to $5.00 and so on.  With each passing week she saw instant success.  Her saving started to grow, in fact it was the first time she even had a savings account.  Her mind started changing and so did her thinking.  She found more ways to save money and at the same time was able to pay on her debt.  Within three years she was out of debt, paid a  down payment on a home and had considerable savings for investing.  The main point I want to make is that she started telling her money where it needed to go instead of everyone else telling it where it was to go.

4.  Einstein's definition of insanity to keep doing the same thing over and over again and expect a different out come.  Are you tired of your financial roller coaster?  Give the above formula a try, even if it is modified to begin with as she did but give it a try.  You will be amazed by the results and will be thankful you did.

May each of you have a wonderful holiday season and a happy and prosperous New Year!!

Debt & Credit Problems

I am writing this to those of you who are experiencing debt and credit issues.  Many do not know if filing a bankruptcy is the right choice for them.  This is understandable, after all it is a big step and creates many questions.  Some of these questions are:  Will I lose everything I own?  What will happen to my credit?  Can I recover from bankruptcy?  Will I be able to buy a house in the future?  These are all valid questions.

I am not going to answer all of these questions because you will think I am trying to sell you on the idea of filing a bankruptcy.  Instead, I would like to refer you to a great non-profit company that I have come across and can highly recommend.  The company name is Fair Credit and you can contact my friend, Preston@faircredit.org.  This company can be your personal unbiased advisor.  The company can advise you about reverse mortgages, credit management, credit repair after filing bankruptcy, even debt reduction plans, and yes, if needed they can tell you whether or not bankruptcy is right for you and what to expect.  I trust these guys and you can too!  faircredit.org 

Don't fail to Plan

Is your Will up to date?  Do you even have one?  Who would take of your children in the event of an untimely death?  If you are like me these are all questions we would rather avoid.  But the issue does not go away simply because we ignore it.  The truth of the matter is if we fail to plan then we fail to make  sure are loved ones are taken care of.  The courts or the State could make decisions concerning the care of your children or the distribution of your estate.  Failure to plan means you are planning to fail.

At our firm we have  helped hundreds of individuals and families plan for the future from simple Wills to complex trusts.  We can help ensure that your family is not left with the uncertainty of who would take care of  your children.  We can make sure that your wishes are followed.  We can remove the uncertainty of  not being prepared.

Contact the firm of Richards & Godfrey  this month and receive a free estate evaluation and review.  If we can help you we will tell you exactly what we recommend and the costs.  If nothing is needed you owe Richards & Godfrey nothing.  Also, if you see Richards & Godfrey in the months of September and October if Richards & Godfrey can provide a service you will receive a 10% discount. Recommend Richards & Godfrey to a friend who contacts us or likes our page on Face Book and receive an additional 10% off.  Please share us  with your friends.richardsgodfrey.com